Tuesday, October 11, 2022 5:00 AM EDT
Verizon Communications Inc, ticker (VZ), is a large-cap telecom services company in the communication services business sector. It is the second of five communication services candidates vying to be the second selected for my Viking folio. This is not my first report on VZ. I have discussed VZ previously and I selected it for one of my previous, portfolios.
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Verizon 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.
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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.
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Three key data points gauge Verizon Communications Inc:
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(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
Verizon’s price per share was $36.62 at Monday’s market close. In the past year, VZ’s share price fell by $15.56 or about 30%.
If Verizon’s stock trades in the range of $30.00 to $55.00 this next year, its recent $36.63 share price might reach $50.00 by next year. My upside increase estimate of $13.34 is $0.79 under the average price upside forecast from 25 analysts tracking the stock for brokerage houses.
VZ Dividends
Verizon’s most recently declared quarterly dividend of $0.6525 per share makes an annual dividend of $2.61 and casts a yield of 7.13%.
VZ Returns
Adding the $2.61 annual Verizon dividend to my one-year price upside estimate of $13.34 shows a $15.95 potential gross gain per share.
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At today’s $36.62 closing price, a little under $1000 would buy 27 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us $0.37 per share.
Subtract that maybe $0.37 brokerage cost from my estimated $15.95 gross gain per share results in a net gain of $15.58 X 27 shares = $420.66 for a 42.6% net gain including a 7.13% annual yield.
In a year our $1K investment in shares of Verizon Communications Inc could generate $71.30 in cash dividends. Of course, a single share of VZ stock at today's $36.62 price is almost one half of the annual dividend income from our $1000.00 investment.
So, by my dogcatcher ideal, this is good time to buy VZ shares based on their dividends for the year 2022. The dividend from $1K invested is 1.95 times more than yesterday’s single share price. Consider yourself alerted. Now is the time.
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 market value.
More By This Author:
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Current Report: Magic Software (MGIC)
Daily Stock Analysis: MiX Telematics, October Snapshot
Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...
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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.
Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts.
Catch Your Underdog Daily Dividend on Facebook!
At 8:45 AM every NYSE trading day on Facebook/ Dividend Dog Catcher Fredrik Arnold does a quick live video summary of one stock contending for a weekly slot on his new Viital portfolio.
Today he followed this script on his Underdog Daily Dividend Show!
Always remember: Root for the Underdog.
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