Daily Stock Analysis: Verizon Communication

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The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista.  I will select the twenty-first stock for Vista this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today we look at a very large-cap telecom services company named Verizon Communications Inc. Its trading ticker symbol is VZ. This is my first report on Verizon Communications Inc for this portfolio. 

Verizon is now primarily a wireless business (70% of revenue and nearly all operating income). It serves about 89 million postpaid and 4 million prepaid phone customers and connects another 24 million data devices, like tablets, via its nationwide network, making it the largest U.S. wireless carrier. 

'Fixed-line telecom operations include local networks (12% of revenue) in the Northeast, which reach about 25 million homes and businesses, and nationwide enterprise services (10%).

Recent investments, including fiber network construction, have supported the wireless business in addition to expanding traditional fixed-line capabilities. Verizon Media Group, the online media and advertising firm formed with the acquisitions of AOL and Yahoo provide the remainder of revenue.

The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. 

The company was founded in 1983 and is headquartered in New York, New York.

I use three key data points to gauge dividend equities or funds like Verizon Communications Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

VZ Price

Verizon's price per share closed at $55.41 yesterday. A year ago its price was $59.53. Price fell $4.12 or about 7% last year. 

If Verizon's stock trades in the range of $50 to $65 this next year, its recent $55.41 price might rise by $4.59 to reach $60.00 by January 29, 2022. 

VZ Dividends

Verizon's most recently declared quarterly dividend was $0.6275 payable February 1st, next Monday. Dividends are estimated to total $2.51 per share annually and yield 4.53% at yesterday's $55.41 closing price.

VZ Gains?

Adding the $2.51 annual Verizon Communications Inc anticipated dividend to my $4.59 most optimistic price upside shows a $7.10 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little under $1,000.00 today in Verizon Communications Inc at $55.41 per share and we'd buy 18 shares of VZ stock.

A $10 broker fee (if charged) paid half at purchase and half at sale might cost us about $0.56 per share.

Subtract that maybe $0.56 brokerage cost from my estimated  $7.10 gross gain per share results in a net gain of $6.54 X 18 shares = $117.72 for an 11.77% net gain on a $997.38 investment.

Verizon Communications Inc shows a possible 11.77% net gain including a 4.53% dividend yield. It could be more, it could be less.    

All of the estimates above are speculation based on the past history of Verizon Communications Inc. Only time and money invested in this stock will determine its worth.