In Focus – VZ

Favoring the highest paying dividend stocks is an excellent way to invest, but it is not a foolproof way to invest. It is very beneficial to study each of the highest paying dividend stocks in more detail to determine if that stock is also one of the best dividend stocks. In this report, we will be looking at Verizon Communications in a little more detail.

Background

Verizon (VZ) is a communications company that provides communications, information, and entertainment products & services to consumers, businesses, and governmental agencies. VZ operates in two basic segments: Wireless and Wireline.

VZ is headquartered in New York, New York. And it provides its products and services to consumers in the United States, as well as to carriers, businesses, and government customers both in the United States and around the world.

Stock Fundamentals

VZ is a well-run company that is consistently profitable and consistently cash flow (and free cash flow) positive. Its dividend is generous and safe. And its other price multiples are at moderate levels. Its growth outlook is not fantastic, but it is at least decent.

VZ’s equity-to-assets ratio is a leading misleading. This can sometimes happen when a firm has very low business risk and a paper thin equity-to-asset-ratio. VZ’s finances are actually in pretty good shape, although for now, officially, we consider its finances NM (i.e. not meaningful).

On April 13th, 36,000 Verizon workers went on strike. Strikes have happened (before about five years ago). We are not happy about this strike, but it is also nothing to be too concerned about. This strike is not good for the short-term outlook for VZ, but we feel it will have little impact on the long-term outlook of this company.

VZ is not a perfect company and it does not earn our highest grade for its overall fundamentals. But it definitely earns an above average grade. We like this company very much. We consider it one of the best stocks to buy now.

Stat Sheet – Verizon Communications, Inc. 4/26/16

Ticker VZ
Industry  Communications Services
Price $ 50.44
Market Cap  $ 205,392
Dividend Yield 4.48
Dividend/CFOp 0.256
Equity/Assets 0.054
Average Equity/Assets 0.125
Financial Strength NM
Growth Prospects Average
Beta 0.30
Price Volatility Below Average
Stock Fundamentals B

(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016.)

If you would like to see some of the other research we make available, click the link below.

Best Stocks to Buy Now

If you would like to see why we gravitate towards the best dividend stocks, click the link below.

Why the Best Dividend Stocks

Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.

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In Focus – VZ

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