Many stock market experts believe it will continue to sell off this year. One reason is a recession. Another is that corporate earnings will be less than mediocre. The answer to this is a company with stable earnings and a dividend yield that is better than most safe bonds.
Verizon has been one of America’s biggest wireless companies for over a decade. Its competition over that time has been from T-Moblie and AT&T. While T-Mobile has picked up some market shares, each of the three has huge wireless subscriber counts. Verizon leads the three with 140 million customers.
Verizon’s revenue has been stable. In 2019, it was $132 million. It was probably $135 million last year. Its net income has been close to $20 billion all four years. Wireless subscribers tend to be loyal. And Verizon has a healthy fiber to the home business and strong revenue from corporations.
In the most recent quarter, Verizon’s revenue rose 4% to $33.4 billion. Adjusted EPS was $1.31 compared to $1.42 in the same period last year.
As the market seesaws, dips, and sometimes become plunges, Verizon pays shareholders handsomely each year. At $2.61, its dividend yield is 6.24%, one of the biggest of any large-cap public company. Large company bond yields are rarely close to that. And, because of Verizon’s solid earnings and rock-solid balance sheet, the payout will not change.
Compared to almost any other public company, there is no safe harbor stock like Verizon.
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