4-Star Stocks Poised to Pop: Verizon

Updated

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.

Verizon facts

Headquarters (Founded)

New York (1983)

Market Cap

$107.1 billion

Industry

Integrated telecommunication services

Trailing-12-Month Revenue

$110.9 billion

Management

Chairman/CEO Lowell McAdam
CFO Francis Shammo

Return on Equity (Average, Past 3 Years)

12.6%

Cash/Debt

$14.0 billion / $55.2 billion

Dividend Yield

5.3%

Competitors

AT&T
Sprint Nextel
T-Mobile USA

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 4,872 members who have rated Verizon believe the stock will outperform the S&P 500 going forward.

Late last year, one of those Fools, divinezone, tapped the stock as a solid income opportunity:

It would shock me if stock in Verizon -- which in my experience has proven itself to be the most reliable service provider -- did not beat the broader market over the course of the next few years. Its dividend alone, nearly 5.4% currently, looks more like the rate of a corporate bond than the dividend yield of a massive company with no particularly ominous dangers to scare away investors. ... Verizon is in good position to take advantage within the industry. In five years or so [Verizon] and AT&T could be the only major players in the telecommunications game. ... Sprint and AT&T will bleed customers to [Verizon] in these years to come, and will be unable to match Verizon's service consistency.

Of course, despite its five-star rating, Verizon may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 11 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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 Fool's disclosure policy always gets a perfect score.

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