This company is the leading and the largest provider of wireless phones in the United States. The coronavirus pandemic however made an impact this year along with the 2020 United States Presidential Elections. The shift from 4G to 5G in 2020 was something good that happened. Now, the company has to pave its way into the New Year with better hopes of attaining profits.
Verizon Communications: The Pace of the Company
The stocks which provide dividend always have a risk associated with them. The falling of the dividend affects the profits of the investors. From Verizon, the investors should not expect lots of growth and immediate profits to pour in. the company is slow and steady. The company is very moderate when it comes to its progress.
Therefore, owing to this slow and steady growth rate of the company, it makes its way to become a well-suited retirement stock. Retirement time is when one has to invest money in such a way so that it keeps growing and does not come down. Verizon stock is a good choice when it comes to the list of the best retirement stocks. It has shown an increase in its dividend from the past 14 years which is good news for the investors.
The company will earn better profits as and when the 5G revolution will take over and the markets would flourish with the sale of the 5G mobile phones. All this will however happen when the coronavirus pandemic will slowly vanish away and a fully effective and reliable vaccine will be there.
Verizon Communications Inc. (NYSE: VZ)
- 52 Week Range: $48.84 – $61.95
- Average Volume: 15,083,781
- Market Capital: $241.788B
- Forward Dividend and Yield: 2.51 (4.32%)
AT&T Inc. (NYSE: T) a major rival company of Verizon Communications:
- 52 Week Range: $26.08 – $39.55
- Average Volume: 41,360,639
- Market Capital: $203.554B
- Forward Dividend and Yield: 2.08 (7.30%)
In some aspects, AT&T might look like a better option as compared to Verizon but the main point which makes an investment in Verizon more secure than AT&T is its slow growth process. A company that is growing slowly will also give profits slowly but the risk of suffering losses will also become less.
What to Expect from Verizon in 2021?
2020 was a year of very little progress for the company due to the coronavirus pandemic. If the pandemic would not have happened, the 5G rush would have been high the whole year and the company would have earned well. This can be expected from the company in this New Year if things work out well.
If the vaccines become successful, then the risk will lower down and the markets will once again prosper as before. Therefore, better growth is expected from the company this year and this makes Verizon a fair company to invest.