Zacks.com users have recently been watching Verizon (VZ) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
VZ secures a contract extension from the U.S. Department of Defense to build a point-to-point connection within Southwest Asia.
VZ appears to be treading in the middle of the road and investors could be better off if they trade with caution.
The veteran telecom giant boasts a large dividend, but an impending acquisition may muddy the waters.
The dividend stock yields 6.6% -- but is it too risky?
Verizon's Q3 earnings report led to a price dip, presenting a buying opportunity despite limited near-term upside due to the Frontier Communications deal. Market overreaction was driven by increased debt and missed revenue estimates, though Verizon's dividend safety remains strong with a low payout ratio of 46.7%. Verizon's dividend remains safe with a low payout ratio of 46.7%, making it an attractive income play despite recent declines in earnings and cash flow.
The telecom giant has a vast amount of unused fiber-optic infrastructure. With the AI revolution, it likely won't stay unused for long.
Verizon (VZ) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Verizon's financial performance remains weak despite a recent dividend hike, with Q3'24 revenues down 0.1% and EPS declining to $1.19. The wireless company has spent heavily on capex, 5G spectrum and acquisitions, yet the spending hasn't translated into revenue growth. The stock has a large dividend yield of 6.55%, but ongoing high debt levels and limited growth potential pose significant risks for investors.
The stock carries an attractive 6.5% yield.
The telecom giant appears to be in a strong position to extend its streak of 18 consecutive dividend increases.