First up is communications utility Verizon (VZ), a $121 billion firm that owns the biggest landline network in the country, half of Verizon Wireless, and a super high-speed residential fiber optic network in FiOS. All of those businesses give Verizon a suite of complementary services that it's able to cross-sell to its massive customer Rolodex, and churn out attractive margins at the bottom line.
Verizon's sheer size is a major advantage. Because the firm had the capital required to finance a massive infrastructure project in FiOS, it was able to build the fastest data network available to consumers, one that shouldn't be usurped any time soom. Even though Verizon is winding down its installations (because of the cost, in many cases), the high revenue per user VZ is currently commanding should start to eat away at the massive investment that the firm has already made.>>3 Financial Stocks With Huge Dividends Verizon's wireless business is the big variable that the firm needs to figure out. Vodafone (VOD) owns close to half the business, and Verizon wants to buy it. That would be a good use of some of VZ's balance sheet liquidity in the near-term. From a financial standpoint, Verizon is in solid shape, having reduced its total debt by unloading non-core businesses in the last decade. That, and the mountains of cash thrown off by Verizon's operations, has helped push this firm's quarterly dividend payout to 50 cents per share; that's a 4.7% yield at current price levels. With four straight quarters of payouts at that level (counting last week's dividend announcement), I'd expect a rate hike in the next quarter.
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