Verizon Stock Is Jim Cramer's Telecom Stock Pick Over AT&T

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All defensive stocks are not created equal and Jim Cramer prefers Verizon  (VZ) - Get Report over AT&T  (T) - Get Report for his Action Alerts PLUS charitable trust as the coronavirus pandemic pressures the stock market and U.S. economy.

Cramer held his monthly call with AAP members recently and he and AAP senior analyst Jeff Marks told viewers why communications companies are a good play and why Verizon was the pick over AT&T.

Marks notes that wireless is not really a discretionary play. People need to pay their wireless bills during the coronavirus pandemic as remote communication has become indispensable.

“I know there's been some concern that there could be some delinquencies just because of what's going on with the economy and unemployment, but people need to communicate and to do that in the age of phones,” Marks said.

So why Verizon over AT&T?

The AAP team notes that Verizon has a 4% dividend yield and also has an “equity bond appeal,” which means that the dividend is not in any danger anytime soon. The balance sheet is safe and “is a really big reason why we chose Verizon over AT&T,” Marks said.

Taking a wider view of the wireless industry, Cramer noted that the recent merger between T-Mobile  (TMUS) - Get Report and Sprint is bad for consumers as prices for phone plans are likely to climb due to decreased competition in the space.

Higher prices are bad for consumers but good for shareholders.

Check out the video above for more of the conversation and join Action Alerts PLUS to get all of Cramer’s exclusive takes on the market that you won’t find anywhere else.

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