1 Big Risk for Verizon Investors
On the surface, (NYSE: VZ) stock looks like a no-brainer opportunity. Its 7.2% dividend yield alone looks attractive. Even more, shares trade at only 7x earnings. This is despite the fact that Verizon's business almost certainly isn't going anywhere.
With a large base of premium wireless customers and low customer churn rates, Verizon boasts an established brand that people rely on for a service that's critical to both everyday life and business. This is the sort of company investors can safely bet will likely still be generating significant profits a decade from now.
Despite the many reasons to be bullish on the stock as a good long-term investment given its cheap valuation today, there's one looming risk that should keep investors cautious: the possibility of Verizon opting to reduce or pause its regular dividend. While the odds of this occurring are low, it's still a risk investors should keep in mind.
Source Fool.com
Verizon Communications Inc. Stock
The stock is one of the favorites of our community with 23 Buy predictions and 1 Sell predictions.
With a target price of 41 € there is a slightly positive potential of 7.94% for Verizon Communications Inc. compared to the current price of 37.99 €.
