Sell AT&T and Verizon: Follow Warren Buffett's Approach With T-Mobile Instead
Many retirees and income-focused investors gravitate toward stable, dividend-paying stocks. After all, as we age, we look to de-risk our portfolios and seek consistent payouts to supplement Social Security, pensions, and other fixed payments.
In addition to fixed-income investments such as bonds, (NYSE: VZ) and AT (NYSE: T) have long been favorites among dividend investors. These huge companies operate in the telecom space, which is consolidated to just a few giants, making them "seem" safe. Furthermore, the importance of smartphones and the mobile internet makes one's phone subscription the last thing someone would cut, even in a recession.
Sounds easy, right? Well, not so fast. In the age of 5G, Verizon and AT's vaunted status isn't assured. In fact, each has fallen behind T-Mobile (NASDAQ: TMUS) in deploying 5G. While T-Mobile has handily outperformed Verizon and AT, even including dividends, T-Mobile doesn't pay a dividend, leaving income-focused investors who may prefer T-Mobile's business in a quandary.
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 7.25% for Verizon Communications Inc. compared to the current price of 38.23 €.
