CA - Verizon: Still Looks Undervalued Yielding 6.69%
2024-05-29 09:00:00 ET
Summary
- Verizon's shares have rebounded about 30% and still appear undervalued.
- Concerns about Verizon's $137 billion debt should focus on the company's ability to service and repay it.
- Verizon's dividend yield is currently at 6.69% and the company is expected to strengthen its balance sheet and reward investors.
Verizon's shares ( VZ ) aren't as cheap as they were in October 2023 when they reached $30.14, but after rebounding roughly 30%, they still look undervalued. Over the past 5 years, shares of Verizon are down -33.80% as they gradually decreased in value during the Fed tightening cycle. While some investors are worried about the $137 billion in long-term debt on the balance sheet , I look at a company's ability to service the debt and repay maturities rather than stressing out about the amount of debt it has. After Verizon's shares broke through the $43 level in April, they retraced back under $40, which pushed the dividend yield back up to 6.69%. I think that Mr. Market is giving income investors another opportunity to grab shares of VZ at an attractive level heading into a rate-cutting cycle. I am long Verizon, as I believe they will continue to strengthen their balance sheet by reducing their debt level and rewarding investors through a growing dividend....
Verizon: Still Looks Undervalued, Yielding 6.69%