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Verizon Communications (VZ) is primarily a wireless business (nearly 80% of revenue and nearly all operating income). It serves about 93 million postpaid and 23 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest U.S. wireless carrier.

Fixed-line telecom operations include local networks in the Northeast, which reach about 25 million homes and businesses, and nationwide enterprise services.

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

Verizon Communications Inc. was incorporated in 1983 and is headquartered in New York, New York.

Three key data points gauge Verizon or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

VZ Price

Over the past year, Verizon share price dropped about 30.4% from $50.49 to $35.14 as of Monday’s market close.

If VZ stock trades in the range of $20.00 to $50.00 this next year, its recent $35.14 share price might rise to $40.00 by next year. Of course, VZ price could drop about the same $4.86 amount or more.

My upside estimate of $4.86 is $3.43 below the median of 1year target prices set by 23 analysts tracking the stock for brokers.

VZ Dividend

Verizon Communications' most recent $0.6525 quarterly dividend, payable August 1st to shareholders of record July 7th, equates to $2.61 annually and throws a yield of 7.43% as of Monday’s closing price.

VZ Returns

Adding the $2.61 anticipated annual dividend to VZ’s estimated $4.86 price upside, reveals a $7.47 potential gross gain per share for the coming year.

At Monday’s $35.14 closing price, a little under $1000 would buy 28 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.36 per share.

Subtract that maybe $0.36 brokerage cost from my estimated $7.47 gross gain per share makes a net gain amounting to $7.11 X 28 shares = $199.08 for about a 20% net gain.

This may be the time to pounce on Verizon Communications. But beware, its dividend is flexible and its price has been falling, and is lately priced $26.26 below the stock’s most recent high of $61.40 posted back on December 31st 2019.

The foregoing article is based on past history of Verizon Communications Inc. The only accurate measure of future performance is from active investment in the company.

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