The stock market’s bumpy ride continues. Days when inflation appears to be at bay, or when a large company posts strong earnings, the entire market can rise. Days when fears of inflation or recession hit, the market sells down.
[in-text-ad]
One thing unlikely to happen is a recovery of the price of the shares in big tech companies. Now viewed as having been overvalued early this year, the stocks of Amazon, Facebook and Google parent Alphabet have been hammered.
Investors have moved to so-called safe haven stocks. None of these is a stronger choice than Verizon Communications Inc. (NYSE: VZ).
Verizon’s key businesses may not be recession-proof, but they are close. Its wireless business is one the big three in the United States, along with AT&T and T-Mobile. Americans, in their minds, can barely survive without wireless broadband. New super-fast 5G has set off a new round of demand for wireless service.
Verizon’s earnings for the most recent quarter were mediocre. Nevertheless, the company remains solid financially. Guidance for the balance of the year disappointed Wall Street, and Verizon shares sold off. However, one byproduct of this is a dividend yield of 5.65%, which is almost unheard of among major U.S. companies.
24/7 Wall St.The stock’s sell-off almost certainly is over. The market has digested what it will from Verizon’s last earnings statement. The company has the balance sheet to keep its dividend intact, which, by itself, makes the shares a near-perfect hedge in a market that is likely to jump around for the balance of the year.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
