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Play Defense With High Dividends: Buy Verizon, 4.3% Yield And Upside

Published Sun, 10 May 2020 09:35:00 -0400 on Seeking Alpha

Telecom is one of the most defensive sectors for income investors.
Verizon is benefiting from COVID-19 data usage boost.
Verizon is on its way back toward its 52-week high.
Further dividend growth is expected.
Co-produced with The Value Portfolio
Building a portfolio for an uncertain market involves investing in quality companies, like Verizon (VZ). At High Dividend Opportunities, we are focused on providing subscribers with various ways they can improve their portfolio. Verizon is a company that benefits from the increased trends of working from home and the rollout of 5G Internet which will enable IoT devices. At the same time, technical analysis highlights that now is the ideal time to invest.

Verizon COVID-19 Boost
Verizon, as one of the largest cellular and networking companies in the nation, along with a content provider through relationships with operators like Disney+, is primed to see business growth from COVID-19. Specifically, the company has two main COVID-19 catalysts worth paying attention to.
The first is that COVID-19 has put unprecedented strain on network infrastructure, with some services like Netflix and YouTube throttling streaming quality to reduce the demand on Internet infrastructure. Verizon itself has seen a 20% increase in web traffic demand through the company. Given that new work from home lifestyles, which have replaced in-person interaction, are expected to partially continue after COVID-19 disappears, higher demand for Verizon infrastructure should continue.
As both an infrastructure and network provider, Verizon can benefit from not only consumers paying more to use more data on their phones, but increased demand for high bandwidth home Internet plans. As customers explore new streaming platforms, the company's Disney+ relationship also could help support it here.
The company's second COVID-19 related catalyst is, because of its technological prowess and infrastructure, the ability to offer a top of... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
CENTURYLINK 13.53   0.0 -7.43 1.00 7.94
AT&T 38.38   16.1 2.38 2.04 5.43
WALT DISNEY 137.50   17.3 7.93 1.76 1.30


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