Company Review Thursday

Company Review Thursday: Verizon Communications

Happy Thanksgiving!! I’m so thankful for so much this year. I’m thankful for everything from my family and their health to my job and this blog. I’m also thankful for the fact that when you invest your money works for you while you sleep, eat, workout and basically all other times of the day. Currently waiting on my pound cake to finish baking in the next hour so I decided I’ll post on this popular wireless carrier:

Company Snapshot (Yahoo! Finance Data)
Name: Verizon Communications (as of close of business 11/25/2015)
Ticker: VZ
Current Price: $44.92
52 Week High Price:$50.86
52 Week Low Price: $38.06
Market Capitalization: $183.87B (Large Capital)
Price/Earnings (P/E Ratio): 17.87
Earnings/Share (EPS): $2.5134
Dividend: $2.26/year
Industry: Diversified Telecommunication Services
Primary Business: Communications, Information and Entertainment Products and Services

The Good
Verizon has promoted and grown two services that have had tremendous response from customers:
1) go90 is the new social entertainment platform specifically built for mobile devices. You should be able to share snippets of favorite TV shows and NBA games using this app. It is offered on the Google Play Store and Apple Store and even if you aren’t a Verizon Customer, you can download this app for use.
2) Enterprise Cloud Offering has become even more flexible and more requested as companies feel like cloud computing is more secure now. Verizon offers a carrier-agnostic connectivity with high quality cyber-security measures and provide the support and engineers needed to stand the infrastructure up for companies.

Then to top it off VZ offers a huge dividend yield at 5.02% or $2.26/share for the year. Remember dividends = money for owning the company. I’ll take it!

The Bad
Verizon and other wireless service providers got hit with a pretty hard lawsuit earlier this year and ended up having to pay out about $90 million. The lawsuit came as a result of carriers allowing companies to charge customers millions of dollars for services that operated through SMS like horoscopes, special mobile updates and ringtones. Carriers would keep as much as 40% of the revenue generated by these companies to use SMS service to communicate with customers. The government caught AT&T, Verizon, T-Mobile and Sprint with this lawsuit.

The Ugly
With Apple now offering their own “Upgrade your device” options to their loyal iPhone customers and news that Samsung is soon to follow, the spaces for wireless carriers has gotten a little ugly to say the least. Having the option to pay off the phone in two years or upgrade every year is super convenient to people who like having the newest device on the market.Then on top of that this opens the door for people to shop around more for their preferred carrier. Although Verizon has one of the most extensive and fastest networks in the market, its still a service offered at a premium. People are looking for less expensive and no contract options. Verizon recently came out with the various plan options for new customers, but they’ll really need to step up their game to compete on the device and wireless service end.

Hope you enjoy this day of thanksgiving with family and friends!!

Until next post ❤

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