Verizon Is a Cheap Stock With a 5% Dividend

Telecommunications giant Verizon Communications Inc. is a component of the Dow Jones Industrial Average. This stock is the cheapest among the 30 stocks in the average, with a P/E ratio of just 6.51 and a dividend yield of 5%, making it the leader of the 2018 “Dogs of the Dow.” Verizon Wireless is one of the top smartphone platforms in the country. The company is set to report earnings before the open on April 24.

Verizon stock closed Friday at $47.90, down 9.5% year to date and in correction territory at 12.5% below its 2018 high of $54.77 set on Jan. 26. The stock set its 2018 low of $46.20 on March 23. The stock is underperforming the Dow 30, which is down 1% year to date and is 8.1% below its all-time high set on Jan. 26.

Analysts expect Verizon to post earnings per share of $1.11 when it reports first quarter results on Wednesday. Investors will have a watchful eye on the revenue line as Verizon missed estimates on this metric in the fourth quarter. One key will be revenues from wireless services, which rose in the third and fourth quarters. Verizon owns AOL and Yahoo, which could increase growth potential, as might the roll-out of 5G services. (See also: How Verizon Built a Customer Base of 150M.)

 

Verizon reports earnings before the open on Tuesday with a P/E ratio of just 6.51 and is the cheapest “Dog of the Dow,” with a 5% dividend yield. …read more

Read more here: Verizon Is a Cheap Stock With a 5% Dividend

Category: VZ

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