Opinions The Panic-Proof Portfolio (Stockchase Research)
Verizon CommunicationsVZTOP PICKApr 25, 2023
Stock price when the opinion was issued
As of Sep 11, 2026. Market Open.
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A changed company. Older business model was volume-based, now has a bit more of an entrepreneurial spirit and is a bit more growthy. Cutting back on getting the customer at any price to a higher-quality customer. New focus is turning up in cashflow. Returning a lot of cash to investors, lots of buybacks.
Defensive play. Yield is 5.67%.
Gordon Reid
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Premium contentVerizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its segments include Wireless and Wireline. The Wireless segment offers communications products and services, including wireless voice and data services and equipment sales, to consumer, business and government customers across the United States. Social media mentions are up 1300% in the past 24h.
5G adoption is strong along with solid demand for their fixed broadband service. The company reports the highest broadband performance in over a decade. Free cash flow more than doubled on the year to over $2.3 billion which allowed for a sizable reduction in debt. Guidance calls for 2.5%-4.5% increases in revenue this year. It pays a great dividend that has increased for 18 consecutive years, backed by a payout ratio under 55% of cash flow. We recommend placing a stop loss at $33, looking to achieve $44.50 -- upside potential of 18%. Yield 7.0%
(Analysts’ price target is $44.43)