Today’s Stock: Verizon (VZ)

Telecommunications giant! Fiber optic internet, Wireless 5G connecting humans all around the world.

My Thoughts 💭

This stock used to by my bedrock for dividend payments with growth upside as they rolled out 5G. This was some years ago and that hasn’t really panned out the last 4 to 5 years. I am up 12% on this position. Considering the dividends the return is slightly higher.

At 46.4k sats per share (@87,649), you’d receive a yearly dividend of 3,148 sats, which would take 14.7 years to recoup your initial investment. The company is dirt cheap at an 8 PE.

PE:

Expected Growth :

Revenues and expenses:

Balance Sheet:

Dividend:

ZERO

Ownership breakdown

Leadership

Verizon, despite its terrible balance sheet where its debt exceeds its market capitalization, is a sold business. Their conference calls and 10k reveal that the majority of their debt stems from tower and fiber optic construction, as well as purchasing frequency spectrums from the FCC.

I invested heavily in this stock because it paid a dividend and I believed that 5G would be a significant growth driver for them. However, this proved to be an incorrect investment choice. T-Mobile outperformed Verizon in stock price appreciation during this period because investors were more inclined to invest in T-Mobile’s growth strategy compared to Verizon’s.

The company’s fundamentals are quite strong. I wish they would pay off their debt, but I highly doubt that will happen. They have a recognizable brand (for better or for worse) and are an essential American business in the telecom industry.

I still own a few shares, and it’s possible that 5G (or perhaps 6G) could lead to the company’s growth, but I highly doubt it.

This company will save you from going broke but you will fall behind. It’s not worth the sats to invest in this business unless you want to give capital to help Verizon continue on with their internet build out which could be under pressure from Starlink and other low orbit satellite solutions/

176 sats \ 2 replies \ @0xbitcoiner 17 Dec

From a technical analysis point of view, Verizon looks like it put in a bottom back in late 2024 around the $30 level. Right now, I’d say it’s pretty NEUTRAL as long as it doesn’t break below $40. Since it’s a solid dividend payer, it could be an interesting buy for the medium to long term.

33 sats \ 1 reply \ @BlokchainB OP 17 Dec

Yeah but would you risk 41k sats just to get a 3k sat dividend?

91 sats \ 0 replies \ @0xbitcoiner 17 Dec

If you're just looking at that, it's a no from me. But since they drop dividends quarterly plus there's maybe some long-term upside, it's a yes. NFA though!

49 sats \ 3 replies \ @Coinsreporter 17 Dec

Verizon or AT&T? Both are network operators, right?

I think AT&T has really shadowed everyone else in the US.

21 sats \ 2 replies \ @BlokchainB OP 17 Dec

Yeah that’s Verizon’s main competitor I would have to check the numbers to see who has more subscribers but it is really close

81 sats \ 1 reply \ @Coinsreporter 17 Dec

I'm surprised that I didn't think about T-Mobile. I thought it was a minor but it isn't anymore. #1349246

0 sats \ 0 replies \ @BlokchainB OP 17 Dec

Yeah T Mobile killed it these last 4 to 5 years

82 sats \ 1 reply \ @winteryeti 23h

The problem I see is the cellular market in general. It's completely saturated. So the room for growth is minimal or none. This is why Verizon is doing projects like visible with bargain basement connection costs per month. It's a discount battle now.

0 sats \ 0 replies \ @BlokchainB OP 19h

Yeah too bad they can’t grow globally

46 sats \ 0 replies \ @grayruby 17 Dec

Dividend yield is nice but there is very little upside potential for VZ. I owned it for a number of years and it didn’t really go anywhere.