#7 - Verizon Communications (NYSE:VZ)
Verizon Communications (VZ)- Beta: 0.46- Dividend Yield: 4.23%
Like many wireless phone providers, Verizon (NYSE:VZ) is still awaiting the rollout of 5G technology. It will certainly provide a lift to wireless phone sales as customers look to upgrade to the latest and best. However for now, the company is experiencing soft sales as retail stores are closed. It’s fair to be concerned about Verizon only being a “pure-play” for wireless. The company does not really compete it the digital, streaming world.
But while streaming is all the rage, there may be some “streaming fatigue” that sets in once the stay at home orders are lifted. That’s why you have to look beyond the pandemic to understand why Verizon is a good investment.
All things being equal, retail stores should be able to open fairly quickly with appropriate social distance and safety protocols. But even if the store openings take longer than expected, the company has rock solid free cash flow and should easily be able to weather the current storm. And while the stock is down for the year, the stock has paid a dividend for 30 consecutive years and has increased its dividend payment each of the last 15 years.
About Verizon Communications
Verizon Communications Inc, through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business).
Read More - Current Price
- $39.93
- Consensus Rating
- Hold
- Ratings Breakdown
- 8 Buy Ratings, 10 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $46.51 (16.5% Upside)
Even with a market that is proving to be amazingly resilient, the day-to-day movement of the market is enough to spook even aggressive investors. If you’re an investor who has a low-risk tolerance but want to stay in the market, it’s important to look at stocks that prove how slow and steady wins the race.
The novel coronavirus has created a situation unlike anything investors have seen in their lifetime. Not just businesses, but entire industries, have been shut down as our world responds to a global pandemic. Investors hate uncertainty, but the market is shrouded in uncertainty.
Many companies are refraining from releasing forward guidance for precisely that reason. Apple (NASDAQ:AAPL) CEO, Tim Allen, described trying to predict the rest of the year as driving without being able to see out your windshield.
The stocks that are presented in this presentation all have a beta value of less than 1. That means they tend to be less volatile than the broader market. And while that may not be the most exciting way to enjoy the market during a bull run, it will help you sleep better in more turbulent times.
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