Things to Consider about Verizon Stock

If you are considering Verizon stock as the next addition to your portfolio, it is essential that you know how to evaluate a stock and decide if it’s performing in a way that fits with your financial needs. Start by investing a little time in advancing your stock market skills, with some of the free coaching apps1 available online.

Verizon is a known name in the mobile device industry, right up there with AT&T. When investing in stocks, it is easy to get hung up on a brand name and assume it’s the right choice without doing adequate research. Look for investment insights from a variety of sources before making a move.

Here are some data points to consider in evaluating a stock buy of Verizon, to get you started thinking about the best decision for your future.

The Pros

  • Since 2009, Verizon has seen steady increases in the price of its stock.2
  • Verizon is more than a cell phone company. It also provides Internet and cable-alternative TV services, both ever-growing industries. Its mobile phone services, alone, have strong growth potential,3 as more and more users take advantage of communication on the go. Verizon has recently divested itself of its Western landline holdings to expand its Eastern footprint in wireless mobile communications.4
  • The increased need for data services reflects well on Verizon as they expand their menu of choices. Along with other similar companies, Verizon seeks to meet the changing needs of consumers, including their latest roll-over data endeavor.
  • Verizon has demonstrated consistent increases in dividends since 2009. These consistent dividends expand the potential (yield seeking) retail investor universe for Verizon. Technology is always changing, and the company has a history of responding to new technology first, such as with 4G LTE. When AT&T was only offering this service in about 40 markets, Verizon offered it in 400 markets.

The Cons

  • Verizon’s churn rate as of fourth quarter 2014 was projected to increase, despite a strong past record.5 The churn rate is the rate at which consumers end their mobile phone service, or switch to another company for service.
  • Financial forecasts aside, consumer behavior is a telling indicator when evaluating a company’s stock. Before you rush out and dive into Verizon, keep researching. Remember to look at the broader picture, including examining past trends and evaluating future trend forecasts from a variety of sources.

Here at Drive Wealth Education, we are waiting to assist you in learning how to invest your money. There are multiple investment options out there. We provide a helpful resource that will build your confidence and knowledge, leading you to the right investment choices for your particular needs. Whether you choose Verizon or other stocks, or if you simply want to learn some key investment tactics, we are here to help. Contact us today to learn more about Drive Wealth Education.