By Nars Dargenson
A stock to keep your eye on is Verizon Communication. The company is a global leader in delivering broadband and other wireless and wire-line communication services to the mass market, business, government and wholesale customers. Verizon Wireless operates America’s most reliable wireless network, serving more than 92 million customers nationwide. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and delivers innovative, seamless business solutions to customers around the world. A Dow 30 company, Verizon last year generated consolidated revenues of more than $107 billion.
The company stock was trading about $25 a share (Ticker symbol VZ). Now the stock price is trading about 32.43 a share. According to the Wall Street Journal, Verizon has been in talks with Apple to start selling the iphone in 2011. According to the article entitled Apple Readies Verizon iPhone by YUKARI IWATANI KANE and TING-I TSAI, “Apple Inc. is making a version of its iPhone that Verizon Wireless will sell early next year, according to people familiar with the matter, ending an exclusive deal with AT&T and sharpening the competition with Google Inc.-based phones.”
AT&T currently has almost a monopoly on the iPhone. Allowing Verizon the opportunity to sell the iPhone may have positive impacts on the company’s revenue. In addition to the potential benefit of selling the iPhone Verizon will also be selling iPads from their version stores. The phone will be available on October 28th starting at a price of 629.99 for the 16G version. Hence, in addition to the revenue Verizon has received from its other products these new Apple products create a new opportunity for Verizon.
Verizon’s earnings, set to be released on Oct 22nd, will provide us with a picture of how the company is holding up in this current economy. What makes Verizon extremely attractive at this point is the dividend the company is paying. The company is paying a dividend yield of 6%. One can’t find anything close to that from a money market account at a bank. If Verizon can increase profits there is no reason why the dividend will be in trouble. If Verizon provides better service and experience than AT&T they can steal some market share.
Overall Verizon should be a company you may want to consider as in investment. Please conduct your own research before you decide to invest. It is impossible for me to know your unique financial situations. Below is an analyst report that can provide you with more information.
Notes
Wall Street Journal
http://online.wsj.com/article/SB10001424052748703735804575536191649347572.html
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