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

$126.1 billion

Industry

Integrated telecom services

Trailing-12-Month Revenue

$113.1 billion

Management

Chairman/CEO Lowell McAdam
CFO Francis Shammo

Return on Equity (average, past 3 years)

12.9%

Cash/Debt

$10.8 billion / $52.4 billion

Dividend Yield

4.6%

Competitors

AT&T
Sprint Nextel
T-Mobile USA


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

On CAPS, 94% of the 4,873 members who have rated Verizon believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those Fools, tichtalk, tapped Verizon as a particularly solid income opportunity:

Verizon is a clear industry leader, with strong recurring cash flow and healthy margins. The firm's financial health has improved significantly as it has used asset sales, spin-offs and cash flow to sharply reduce debt in recent years. Based upon Verizon's current valuation, high dividend yield, and potential for modest capital gain over the near term support this [bullish view]. ... Additionally Verizon's average annual dividend yield over 5 years has been 5.3%, further making the case for holding.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Verizon may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few 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 theTrackPoisedToCAPS account.

The article 4-Star Stocks Poised to Pop: Verizon originally appeared on Fool.com.

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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