4-Star Stocks Poised to Pop: Verizon
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, telecom giant Verizon Communications (NYS: VZ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Verizon's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||New York (1983)|
|Market Cap||$104.8 billion|
|Industry||Integrated telecommunication services|
|Trailing-12-Month Revenue||$107.4 billion|
CEO Lowell McAdam (since August 2011)
CFO Francis Shammo (since November 2010)
|Return on Equity (average, past 3 years)||13.6%|
|Cash/Debt||$6.8 billion / $54 billion|
AT&T (NYS: T)
Sprint Nextel (NYS: S)
Source: S&P Capital IQ and Motley Fool CAPS.
Earlier this summer, johndunk tapped Verizon as a solid income opportunity: "Nigh-utility dividend play, with some bonuses on the side that people aren't going to be giving up their smartphones anytime soon and the cash flow that comes from those plans."
Over the next five years, in fact, Verizon is expected to grow its bottom line at a solid rate of 10% annually. That's faster than industry peers such as AT&T (4%), Sprint (1%), and China Mobile (NYS: CHL) (2%).
CAPS member troym72 elaborates on the bull case:
Verizon may be #2 to AT&T as far a size, but the dividend yield of almost 6% makes Verizon a safe-house for equity investors afraid of a bear market. Anytime there is market uncertainty, what do you do? You run to the things that are guaranteed. Verizon is not likely to eliminate or reduce their dividend anytime soon. That makes it much more attractive than the larger equity market that is on a roller coaster ride. Even if we hit a double dip recession, no one is going to turn off their cell phone to save money. Cell phones are an integral part of life now -- they're like electricity and air conditioning. People don't even contemplate them as optional luxuries.
What do you think about Verizon, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to trackVerizon?Add it to your watchlist.
At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of China Mobile. Motley Fool newsletter services have recommended buying shares of AT&T and China Mobile. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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