Verizon's Familiar Business Model Charms Investors

This week I’m seeking a prestigious and long-term dividend-paying stock from the communications services sector.

That sector has companies that connect us electronically in either of two ways: telecommunications, or pay TV. Some do both. Not this one, it’s strictly Telco:

Today I’m reviewing a large-cap telecom outfit named Verizon Communications, Inc. Its trading ticker symbol is VZ.

Verizon Communications Inc is a provider of communications, information and entertainment products and services to consumers, businesses and governmental agencies. It offers voice, data and video services and solutions to wireless and wireline networks worldwide.

The company’s Wireless segment provides wireless voice and data services; Internet access, and wireless devices. As of December 31, 2017, it had 116.3 million retail connections.

Its Wireline segment offers traditional circuit-based network products and services, as well as residential fixed connectivity solutions, including Internet, TV, and voice services under the Fios brand name.

The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000.

Verizon Communications Inc. was founded in 1983 and is headquartered in New York, New York.

I use three key data points to gauge the value of any dividend equity or fund likeVerizon Communications, Inc. (VZ):

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money.

VZ Price

Verizon’sprice per share was $54.28 at yesterday’s market close. A year ago its price was $46.20 for a gain of $8.08 per share.

Assuming VZ’s price will trade in the range of $45 to $65 for the next year, perhaps VZ can repeat the gain and move it’s current $54.28 price to $62.36 by early September, 2019.