This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

4 Stocks the Pros Hate -- But You Should Love

Stocks in this article: NEMCNQMCDVZ

Verizon

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Institutional investors didn't sell their of their holdings in Verizon (VZ) in the last quarter, but they still hate the stock. That's because their holdings in Verizon lost $2.8 billion in the first quarter of 2012. Zooming into specific types of funds tells an even more interesting picture: hedge funds, for instance, did sell in the aggregate, unloading almost 10% of their holdings of the firm.

So should you be a seller too?

To be sure, Verizon does have its share of challenges. The company only owns half of its lucrative wireless business, for instance, and it's winding down the pricey capital spending of its FiOS fiber optic rollout, a program that some analysts have estimated to cost as much as $4,000 per installed home. But despite headwinds, Verizon has serious scale on its side as well as wireless and fixed-line networks that peers (save for AT&T (T) on the wireless side) will have serious trouble touching in the years to come.

And investors can't ignore the income. Right now, Verizon pays out a 4.6% dividend yield, a huge payout that's supported by the massive cash generation that takes place over at Verizon Wireless. With debt additions set to flat-line with FiOS spending slowing, the firm looks like it's in better shape financially than it was before the recession forced management to rethink its priorities.

Again, here's a defensive name that investors shouldn't hate right now, even if the pros do.

Verizon shows up on a recent list of 3 Dividend Growth Stocks to Buy at Any Price, and I also featured in recently in " 5 Blue-Chip Stocks Ready to Boost Dividends."

To see these stocks in action, check out the Institutions' Most Hated Q1 2012 portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on MSNBC.com.
5 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs