Verizon Communications

VZ-N

VZ-N or T-N? VZ-N is a high-quality operator, especially in wireless. Their ROC is 5 times higher than the peer group. You can expect them to continue and are well positioned for 5G, which is beginning to roll out in the US already. This can take market share away from some of the cable companies. He still prefers AT&T (yield 5.4%) as they have more upside once they clear away their current operations inefficiencies. Yield 4.0%

U.S. telcos are still an oligopoly even with the Sprint merger. Still has attractive yield. They will probably participate in 5G which could incur high costs. Would probably buy AT&T instead for the content, higher yield, and diversification.

Just announced lacklustre revenue growth and a marginal rise in earnings. Verizon has an upper-hand on AT&T right now. Concerned about the cost of installing 5G and the amount of revenue to come from it as well as the timeline to reap benefits. Their credit rating has also come under review.

Buy Verizon? At this point in the cycle, interests rates are getting quite low, generally getting a telco is an interesting idea and been recommending this for clients. Recently got out of Verizon and substituted into AT&T. Nothing wrong with Verizon, 5G, fiber-to-the-home, etc. everything is going to work, just thinks there is a better yield opportunity with AT&T. Also owns Deutsche Telekom to play the T-Mobile Sprint merger.

BCE vs. Telus vs. Verizon He owns all three plus AT&T. Verizon is still the #1 network in the U.S. and still pays a great dividend. All three will continue to do a good job. If you own them, hold them.