CA - Verizon: Why And How I Sold My Shares

2024-07-01 14:09:59 ET

Summary

• I sold my Verizon shares recently due to consideration of compressed dividend yield and tepid growth outlook.
• I expect the annual growth rate to be only around 1.5% and see other income options that provide both higher yield and higher growth potential.
• In particular, I used covered-call options to sell my shares, a proven strategy to help boost effective yield.

VZ stock: I used to love it too

I have been accumulating and holding shares of Verizon Communications Inc. ( VZ ) in our income account over the past two years or so. My shares were mostly purchased when the dividend yields were around 7%. The recent price rallies have compressed the yield considerably to ~6.6% as seen in the next chart below. Combined with a few other factors (and I will detail them later), I have sold my shares at a price of around $41 per via the use of call options....

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