Verizon Shares Will Dodge Market Sell-Off

By Douglas A. McIntyre Published Jun 22, 9:30AM EDT

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Verizon Shares Will Dodge Market Sell-Off — © Bill Oxford / iStock via Getty Images

Verizon trades in a relatively narrow range. Over the past 12 months, it has changed hands between $56.85 and $45.55 a share. The stock closed most recently at $50.65 per share. They have traded fairly flat this year, which means they have dodged the terrible sell-off that has undermined much of the stock market.

Verizon is in a remarkably boring business. Most of its sales come from wireless, wireline and broadband to the home products and services. Most Americans have one or more of these. Each is considered essential to some part of daily life. Each has competition, but that is mostly against one company, AT&T.

The pricing power each wireless company has had recently was eroded by a fight to get new 5G customers. While that is not over, most people who could have switched providers have done so by now. Wireless providers have started to raise rates, and discounts on products like the Apple iPhone will start to become a thing of the past.
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Verizon has a dividend yield of 5.5%. That payout almost certainly will not be cut, even if the markets dip lower. And even if interest rates continue to rise, yields on government bonds will not match that soon, if at all.
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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.