Shares of phone and communications conglomerate Verizon Communications Inc. (NYSE: VZ) have risen 15.19% to $53.24, which makes them the best performing among all components of the Dow Jones Industrial Average in 2016. The index is higher by 1.02% for the year to 17,602.30. It had been in the red for most of the year.
Verizon has several financial and business model advantages over most large companies. The argument is bolstered by the performance of its only major, direct rival. AT&T Inc. (NYSE: T) shares have risen 12% since the start of the year to $38.56. The two companies are often described as mirror images of one another. Wall Street continues to warm to both.
Verizon had revenue of $131.6 billion last year, making it one of the largest companies in America. The figure was higher by 3.6% year over year. Net income for 2015 was $18.4 billion, up 54%.
Announcing full-year results, chairman and CEO Lowell McAdam said:
In 2015, Verizon delivered strong and balanced results in a dynamic competitive environment while returning more than $13.5 billion to shareholders. At the same time, Verizon built and acquired next-generation network capabilities that position the company to be an innovator in the digital-first mobile world in 2016 and beyond.
Verizon has two primary businesses that are healthy and one that is solid but shrinking slowly. The eroding one among is its landline business, which dates back decades.
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