Why I Keep Buying the Dip in Verizon Stock
Shares of (NYSE: VZ) have fallen more than 25% over the past year. I've been steadily buying that dip to boost my position. The main driver is Verizon's high-yielding dividend. With shares falling, the telecom giant's dividend yield has risen to more than 7%.
Here's why I believe that dividend is safe, and that the stock will eventually reverse its slide.
Verizon has one of the highest dividend yields among S 500 members. While a high dividend yield is usually a warning sign that the market believes a cut is forthcoming, I believe Verizon's payout will continue growing. Its strong, improving free cash flow and falling leverage ratio drive that view.
Source Fool.com
Verizon Communications Inc. Stock
€38.02
-0.470%
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 7.85% for Verizon Communications Inc. compared to the current price of 38.02 €.
