Any Verizon (VZ) opinions?

[MichealKnight]

"But".

I know it's not wise to chase yield.

But....

As of now it would be yielding over 7% --potentially tax favored if held long enough. Depending where you look, dividend payout ratio looks around 52%.

Any opinions on this one and telecoms in general? Thanks

 

[Al18]

I’m long in VZ. The dividend is up because the stock price is down. I don’t know what will happen in the future.

 

[aja8888]

I've been selling off the VZ stock I have had for a decade (of losses, mind you). Each time it pops over 40, I dump some. I have written numerous covered calls and made some of my losses back though.

I only have a few hundred shares left and they will be gone soon too!

The next recession will kill this stock. T Moble has put a dagger in their heart too.

And the CEO has done nothing except accelerate the stock losses.

T is no better off.

VZ and T long term debt is huge and when they have to refi those loans, they will be facing much higher interest payments.

There is no good news with VZ on the horizon.

 

[HarveyS]

Personally, I dumped my Verizon cell service for google voice with a data plan. Works fine at a fraction of the cost. Same for DW and DS. DD uses a corporate phone.
I agree with aja that VZ is sliding downhill. I would not own the stock.

 

[MichealKnight]

Thanks

Appreciate the responses, will keep reading them

 

[target2019]

I had a note to sell off all T around this time. It dropped 10% last week as I waited for the sell date.

Its step cousin VZ can be seen here: https://seekingalpha.com/symbol/VZ

These cousins are both telcom slow growers, so look at both sides of the performance equation. Glance through the headlines on that SA page.

VZ and T look to me like thry are treading water, and a big wave is coming.

 

[mz44]

"But".



I know it's not wise to chase yield.



But....



As of now it would be yielding over 7% --potentially tax favored if held long enough. Depending where you look, dividend payout ratio looks around 52%.



Any opinions on this one and telecoms in general? Thanks

FWIW, Berkshire dumped their Verizon shares. As a long term holder of ATT, been looking to unload it

 

[Al18]

Thanks for the feedback - reduced my holdings in VZ

 

[target2019]

At the end of last year I sold half of our VZ position, for a loss. It hasn't dropped much since then.

Proceeds went to buy SCHD.

I'm thinking Warren did better...

 

[gauss]

I bought VZ for the first time a few months ago in the high $30's. I think the dividend yield was over 7%. I planned to hold it until 2030 or so. I saw a track record of never pausing or decreasing the dividend in the past.

Unfortunately, the dividend might not be sustainable, after all, according to reports (ie cash flow not covering the dividend). The investment was about 4% of my overall portfolio. I will probably let it ride for now (at least until when/if they cut the dividend).

-gauss

 

[Al18]

Both AT&T and Verizon were Dividend Aristocrats (increasing dividends for at least the past 25 years). AT&T announced they were spinning off into WBD and cut their dividend in 2022, which they did. I wouldn’t be surprised to see VZ cut their dividend this year or next.

 

[ownyourfuture]

I've been selling off the VZ stock I have had for a decade (of losses, mind you). Each time it pops over 40, I dump some. I have written numerous covered calls and made some of my losses back though.

I only have a few hundred shares left and they will be gone soon too!

The next recession will kill this stock. T Moble has put a dagger in their heart too.

And the CEO has done nothing except accelerate the stock losses.

T is no better off.

VZ and T long term debt is huge and when they have to refi those loans, they will be facing much higher interest payments.

There is no good news with VZ on the horizon.

Agreed. I've already liquidated all of my T & the WBD spinoff. Still hold a small amount of VZ in an IRA.

I've found this Charles Schwab page to be very helpful when researching individual stocks. Cuts through all the fluff by showing 1-3- & 5 year 'total' returns which includes dividend reinvestment.

My link page is set for T-Mobile. To search other stocks, just enter the symbol in the box. Once that's loaded, click on total return.

https://www.schwab.com/research/stocks/quotes/summary/tmus

 

[Montecfo]

I think VZ is a value trap. You have to look past the dividend. They have largely lost competitive advantage in the wireless space and the landline is a cigar butt.

Don't chase naked yield.

I prefer TMOB for growth.

For dividends & growth I prefer pharma, defense, selected financials, old tech and beverages.

 

[Al18]

VZ up $1.75 today. Oh well - can’t win them all. I did sell for a handsome gain.

 

[kjpliny]

I like Verizon for their high speed fiber optic internet service. It's very solid and dependable. I don't own the stock, though the yield looked enticing before interest rates went up.

 

[MichealKnight]

Thanks

I have bought some MO and PM with hopes of a stable share-price and continued dividend.

 

[Kings over Queens]

I hate verizon.

Had them for my office telephone back in the day. Horrible. The only way I ultimately got customer service was by writing a letter to the Chairman.

We dumped them for TV and Phone, only kept internet because they are the lesser of two evils. Their website sucks. For a company that is supposed to provide technology based service (TV, CEL, Internet) they are just awful.

For those reasons, I don't think I'd ever consider owning their stock.

 

[pdxgal]

On a related note, VZ recently notified me of an "opportunity" to either sell my small number of shares with them or buy more to bring my holdings to at least 100. I'd be tempted to sell, for all the reasons people have noted here, but the $60 fee galls me, especially since they say "While we value all of our shareholders, we realize that the incovenience and cost of brokerage commissions may have deterred you from selling[.....] For this reason, we are offering you this program." In other words, making their lives easier will cost me $60. I feel they should pay me for that! Though with money freed up from VZ I could buy something else with better long term prospects.
Has anybody here participated in this VZ buy/sell "program"?

 

[ownyourfuture]

Has anybody here participated in this VZ buy/sell "program"?

I haven't, but your post reminded of the outrageous commissions I paid back in the mid 90s when I had a small brokerage account at a local bank.

 

[Alex The Great]

I have a little bit of VZ stock. It is falling like crazy but dividends are increasing. I still believe it is a mature company with large market share which has plenty of upside due to 5G and do not have any plans to sell.

 

[MarieIG]

I currently set dividends from VZ and T to go to the sweep account - and will reinvest to SCHD.

 

[Dash man]

I dumped my Verizon stock earlier this year with no plans to buy it back. I put the funds into PEP, which seems to be doing well. Also ventured into Lincoln Financial group (LNC) that appears to be turning itself around and pays a great dividend.

 

[Quattro73]

Last year. Around this time, I decided to buy 10 individual value/high dividend stocks. I lasted 2 weeks, before looking at myself and seeing “WTH are you doing?” Small allocation per stock in IRA account. But intended to prove something (not sure what anymore) to myself.

VZ was one of them. I had followed for years due to the dividend. I bought at $51.44. Thankfully I sold. Thankfully.

 

[Alex The Great]

I currently set dividends from VZ and T to go to the sweep account - and will reinvest to SCHD.

Actually VZ is among top 10 holdings for SCHD.

 

[Hank]

I still own it. It seems to be no better or worse than T in my opinion. The debt is starting to get paid off slowly but surely. I don't think they will cut the dividend this year but there is now talk of them cutting the dividend and accelerating their debt payments. But that will crater the stock even more. I'm going to hold it and if it breaks 30 I'll buy more.