Verizon (VZ - commentary - Cramer's Take) and AT&T (T - commentary - Cramer's Take) have extraordinary managements. AT&T's bold and gutsy decision to go with the Apple (AAPL - commentary - Cramer's Take) iPhone sight unseen and its excellent wireless execution, coupled with the big corporate wins it gets, is rather amazing. This is a huge pro-shareholder company with a large buyback and a policy of increasing the dividend. I can't believe how strong that quarter was and how much information they give you showing all the good and the bad. Just a very well-run company.
This morning, Verizon (VZ - commentary - Cramer's Take), a stock I own for Action Alerts PLUS, delivered a number that defied every canard. The margins are going higher for the business, not lower; the $99 pricing, which was supposed to destroy profitability, actually increased it; and the buildout of FiOS isn't hurting the bottom line. Now FiOS is about to bust out into New York City and we could have a step-up function in earnings when this buildout reaches critical mass. I don't think people realize how competitive FiOS can be. The cable companies are not loved anywhere, whereas the phone company has a very decent reputation.
Big dividends, big buybacks, well-run businesses, these two remain powerful Dow components that can lead us much higher.
Random musings: I am amazed at how strong Transocean (RIG - commentary - Cramer's Take) is, but it makes sense when you recognize that drilling has to be deeper to find what is left. ... Capital One (COF - commentary - Cramer's Take) should have blown up. It hasn't. I want to know what the heck the bears know. The company has had very good delinquency numbers. Maybe it is just well-run and not nearly as dangerous as I thought it was.
At the time of publication, Cramer was long Verizon.
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