2024-04-25 05:38:37 ET
Summary
- VZ stock has provided a total return of over 10% since December 2023, but there are better investment opportunities in sectors like REITs and Business Development Companies for income.
- Wall Street has an average price target of $45.44 per share for Verizon, representing a potential upside of over 14%. However, my dividend discount model estimates fair value at $31.65.
- While the dividend yield over 7% is enticing, the lack of dividend growth makes this less attractive.
Overview
I previously covered Verizon ( VZ ) at the tail end of December in 2023. Since then, we've experienced a total return of over 10%. My thesis at the time was focused around the idea that VZ has just made the 2024 Dogs Of The Dow list and I expected a recovery movement in price as additional capital came rolling in. Now, I want to take a look at what the actual valuation would be in terms of price targets and other calculated metrics. While there was some upside since my initial coverage, there are undeniably some better deals in the market right now across sectors like REITs, Business Development Companies, or Closed End Funds that can provide an equally as high yield and a better total return....
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For further details see:
Verizon: Not A Good Fit For Dividend Growth Investors (Rating Downgrade)