The stock trades with a low price-earnings ratio and offers a yield over 4%. Total returns could reach almost 19% from the current price
The S&P 500 has surged nearly 18% over the past three
months, approaching a new all-time high. This has caused the price-earnings
ratio for the S&P 500 to cross north of 29 as I write this, which is more
than twice the median average of the index since its inception. At the same
time, the dividend yield has shrunk below 1.8%.
Finding value and income remains elusive in the current
market, but there are stocks that offer the best of both worlds. One name that
remains my favorite is Verizon Communications Inc. (NYSE:VZ).
Verizon, which remains the number one phone carrier in the
country, trades with a price-earnings ratio that is below its 10-year average
and with a yield of more than 4%. Let's look closer at the company to see why
it is a solid buy for investors looking for value and income.
Quarterly highlights
Verizon reported second-quarter earnings results on July 24.
Revenue declined slightly more than 5% to $30.5 billion, but came in $455
million ahead of what Wall Street analysts had been expecting. Adjusted
earnings per share were lower by 5 cents, or 4.1%, to $1.18. Earnings per share
results were 3 cents above estimates.
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