We Like The Recent Developments Around Verizon – Dividend Remains Attractive

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Verizon Communications Stock Fair Value – Verizon Communications ($NYSE:VZ) is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. Verizon is the largest wireless telecommunications provider in the United States.

Verizon also provides communications and entertainment services over mobile broadband and the nation’s most reliable 4G LTE network. The company’s wireless business is growing and its wireline business is stabilizing, which should allow Verizon to continue to invest in its network and pay a growing dividend.

Dividends

Verizon Communications is a large telecommunications company with a long history dating back to the early days of telephone service. The company has a large customer base and a solid financial foundation. It pays a good dividend and has a strong history of dividend growth. The company’s recent developments look positive, and the dividend remains attractive. Verizon Communications recently announced a dividend per share of 2.56 USD for the fiscal year 2022 second quarter, payable on June 30. This is an increase from the 2.54 USD and 2.48 USD dividends paid in the last two years.

The company’s dividend yields for 2020, 2021, and 2022 are 4.19%, 4.41%, and 4.71%, respectively. This gives Verizon Communications a three-year average dividend yield of 4.44%. If you are looking for dividend stocks, Verizon Communications could be a good option. The company has a strong financial foundation, a long history of dividend payments, and recent developments look positive.

Market Price

Verizon Communications Inc. has been in the news a lot lately, and most of the news has been positive. On Tuesday, the stock opened at $39.5 and closed at $39.8, up 1.7% from the previous closing price of $39.2. The company’s strong cash flow and commitment to shareholder return make it a compelling investment at current levels.

VI Analysis – Verizon Communications Stock Fair Value

The Verizon Communications Inc. share is currently trading at $39.8, which is undervalued by around 30% according to the VI Line. The company’s fundamentals reflect its long term potential and the intrinsic value of the share is around $56.9. The company has a strong balance sheet with a large cash position and low debt levels. It also has a diversified business mix with exposure to different geographies and industries. The company’s wireless business is growing rapidly and is the most profitable segment. The company is also investing in new growth areas such as digital media and the Internet of Things. The company faces some headwinds such as intense competition in the wireless market and declining revenues from its wireline business.

However, overall, the company looks well-positioned for long term growth and offers good value at its current price.

Summary

Verizon Communications is one of the largest communication technology companies in the world. The company operates a vast network of wireless, fiber-optic, and global IP middle-mile and local exchange facilities. Verizon also provides security and IT solutions to enterprise customers. The company has been in the news recently for its high-profile acquisition of AOL and its pending acquisition of Yahoo’s core business. these acquisitions will be accretive to earnings and help Verizon expand its reach in the digital advertising market.

And, with a strong balance sheet and free cash flow, the company has the ability to continue paying and increasing its dividend. Overall, we believe Verizon is a well-positioned company with a strong future.