Not gonna happen. You have NO IDEA what you're talking about. A stock like Verizon will only fall so far because then the dividend yield becomes attractive and people pile back into it.
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Can you say Worldcom?
Hard to make that argument on the bad of end of the decline we have been on task for a while now
Can't we all just get along?
We all want the same thing, VZ share price at $20 by so 2022.
VZ = $37.97
Still hoping for $20 by eoy!
VZ = $38.20
Still hoping for $20 by eoy.
VZ spent years of layoffs and tears coming up with $10B of savings and then we burned through many times that buying spectrum that may or may not benefit the company. Leadership?
The main expense in 5G was the spectrum. That impact is known. Everything else is peanuts.
5G CAPEX coming to and end????? I don’t think so…..about 70% of my sites are still 4G…..no 850 NR, no C Band, no UWB, no CBRS…..notta.
5G CAPEX coming to and end????? I don’t think so…..about 70% of my sites are still 4G…..no 850 NR, no C Band, no UWB, no CBRS…..notta.
Agree that there are some risks, but VZ made over $19B in net income last year. More than enough to float the dividend and incremental spend needed to build out the network. As a previous poster pointed out the heavy spend for 5G is mostly behind us. It is more likely that we will pay down debt and increase self-financing next year (since interest rates are high) than it is we'll see VZ at sub $30.
They won't need any new financing, CAPEX for 5G is actually coming to an end soon, they will have extra cash more than enough to be dividend, pay down debt and/or repurchase shares.
Wait until they need to do any additional financing. Interest rates are so low, VZ survived it's poor decisions because the debt was so cheap. It's not anymore.
If they cut the dividend watch it drop like a stone.
Has the OP ever heard of LUCENT? Or was that before his/her time in telecom? Look them up.
At this point, with everything that's happened the last 2.5 years, when anyone says "it'll never happen", I immediately turn them off and run the other direction.
To the genius Vz will never see 20s :
Fed said last week that rates are going to 4.6% in 2023. Regardless of what Vz dividend is, why don’t I take that risk free ~%5 rate ? What is the point of investing in dog stocks jus5 for dividend ? We are not in the TINA, ZiRP, FOMO, zero interest world anymore. Game over for all the bond like dividend stocks if their core business is rotten, which is certainly the case for Verizon.
Oh yeah ? Not gonna happen ? T was $32 just a mere five years ago, now $15.
(a) Vz has very high debt load
(b) Interest rates are going up, so will the debt service fees
(c) We are in an inflationary environment. Nobody is interested in expensive cell service that is basically a commodity.
(d) Competition is coming after Vz customers big time. Not only TMo but also cable companies.
(e) There is a possibility that dividend will have to be cut. That is what ATT had to do.
(f) Vz rode the smartphone wave for 10+ years. Now that is over. Just look at Apple, they just cut production on iPhone14.
You will see a 2x.xx handle, even if it just $29.99 price, on Verizon in 12-18 months if nothing changes.
A big cost reduction effort such as a large layoff may change that picture.
- ) The metric is free cash flow!!!! 2.) Then it is top line growth, if any, for this stodgy, fallen from it graces, behemoth. 3.) Gain market share. where the competition is eating Verizon's lunch. The bottom line, not having to borrow additionally money to pay the quarterly dividend. Lastly, to raise the dividend annually as was just increased at the end of last quarter.
What happens when dividend is cut due to lower revenue?