Market value: $249.8 billion
Dividend yield (as of 1/1): 4.0%
Forward P/E: 12.3
Verizon (VZ, $60.40) is one of the giants of America’s telecommunications industry. Many individuals know it from its wireless telephone, Internet, cable and landline services.
Lately, however, Verizon’s name has been most closely associated with Disney (DIS). The telecom has offered Disney’s new streaming services, Disney+, for free to new and existing Verizon Wireless Unlimited customers, new Fios Home Internet customers, and new 5G Home Internet customers.
The entire telecommunications industry has been preparing for the coming of 5G technology, and Verizon is no different. The company has been realigning its segments since April 2019, streamlining its operations to serve all classes of customers. It’s also making progress on cost cutting. And most importantly, it’s building out and rolling out 5G service.
Verizon does not expect a large impact from 5G in the coming year, but does it expect to meaningfully contribute to revenues in 2021.
In the meanwhile, it’s cheap, at just 12 times next year’s earnings expectations, and it offers more than 4% in annual yield.