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NEW YORK (
TheStreet) -- Although the
Dow Jones Industrial Average has crossed the 13,000 mark twice in February and risen more than 6% year to date, not all of the stocks in the index have seen gains.
Chase Investment Council quantitative analyst Brian Lazorishak said high-dividend stocks have been lagging this year. Adrian Day Asset Management President Adrian Day noted that each of the worst-performing stocks in the Dow have much higher yields than the top-performers.
Analysts believe that investors' risk appetites have increased this year as more signs of economic improvement have been coming.
Shares of Verizon has fallen 4.96% year to date. This stock has "become a yield play," Lazorishak said, adding that the stocks with high dividends have been lagging this year.
The communications company announced earlier this month a streaming content
joint venture with
"While the exact business model is still unclear, we believe Verizon/Redbox are positioning themselves to be the preferred platform for content owners as video distribution increasingly moves online over time," Guggenheim analysts wrote in a Feb. 10 report.
Verizon's forward annual dividend yield is 5.2%.
Verizon shares reached a 52-week high on Jan. 3 of $40.48. The stock's 52-week low of $32.28 was set on Aug. 9.
The company's estimated price-to-earnings ratio for next year is 13.72; the average for fixed-line communications companies is 21.73. For comparison,
AT&T(T) has a lower forward P/E of 11.96;
Centurylink's(CTL) forward P/E is 15.72.
Twenty of the 37 analysts who cover Verizon rated it hold. Fifteen analysts gave the stock a buy rating and two rated it sell.
TheStreet Ratings gives Verizon a B- grade with a buy rating and
$44.51 price target. The stock closed Monday at $38.13.