Acquisition VZ

VerizonI am very sure everyone knows this company or have seen their logo multiple times throughout their lives. Verizon is one of the communication giants that control so much of the whole communication industry. Only a few companies control the whole industry making it a great oligopoly to own and a strong addition to my current ownership of AT&T. Now, this is not a new ownership to my portfolio, it is an addition to the current shares of VZ.

Verizon Communications Inc. is one of the worlds leading providers of communications, information and entertainment products. It offers its products and services pretty much to anyone including consumers, businesses and government agencies throughout 150 countries around the world. It pretty much has its hand in every singe type of industry and the way mobile is going I see huge potential for this communication behemoth.

  • Dividend Yield: 4.7%
  • Payout Ratio: 64.3%
  • P/E: 10.5
  • 8 Years of Dividend Raises

I purchased 21 shares for the price of $46.95 adding $46.20 to my annual income.

The 12-month dividend income increased to $2,147.

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12 Comments

  1. Dividend Mantra on January 16, 2015 at 14:09

    DV,

    Nice! Surprised to see you make a purchase so soon after the sales, but I’m glad it’s working out for you in that way. 🙂

    I’m thinking of adding to one of my telecoms (T or VZ) here pretty soon. They seem roughly fairly valued, and the total return propositions are less than my usual hurdle rate. But I like the additional yield they offer. Looking at VZ’s numbers, a yield of 4.7% and dividend growth around 3% or 4% means you’re looking at total returns in the 8% to 9% range, which isn’t bad at all.

    Cheers!

    • DividendVet on January 16, 2015 at 17:13

      Yeah, with ARCP I freed up a bit more capital than I need or know what to do with.

      One of my first dividend stocks was T, so I have been owning it for quite some time. The growth isn’t much, but with reasonable yield it offers it sure guarantees some of the returns. Plus, I wont try to be greedy and will take a solid 8% or 9% annually any day.

      Thanks again for the referral code.

      Good luck.

      • Dividend Growth Journey on February 6, 2015 at 16:57

        I don’t understand how 4.7% yield and 3-4% dividend growth will result in 8-9% overall returns. Isn’t the 4% dividend growth actually that of 4.7% dividend? Therefore, the actual returns will be around or less than 5%… unless you meant 3-4% of capital growth.

        • DividendVet on January 7, 2015 at 18:50

          I meant 8% or 9% for the whole portfolio not the stock by itself.

  2. FerdiS on January 19, 2015 at 11:42

    Good addition — I’m a satisfied customer. I think owning some low growth/high yield and high growth/low yield in a portfolio of solid dividend growth stocks is the way to go. Take care!

    • DividendVet on January 20, 2015 at 21:24

      Absolutely, this company and a few other names have been owning the whole communications sector. It has been very lucrative industry that I personally don’t see any slow down. Especially at the rate technology is moving, it is insane. People have to communicate with their cell phones. Now a days kids have their own cell phones that they carry in school. Everyone wants to be communication ready now a days.

      Thanks for stopping by.

  3. Dividend for Starters on January 26, 2015 at 05:38

    Hi DividendVet,

    That is a very nice yield you’ve got there.
    Congratulations on your purchase.

    As I’m still working on the fundament of my DGI portfolio, I’m sticking to Champion stocks for now. However, this stock sure looks nice enough to be put on my watchlist.

    Thanks for sharing.
    Best wishes,

    DfS

    • DividendVet on January 26, 2015 at 09:28

      Glad you like the company, I am sure liking their key financial aspects as mentioned above. In time perhaps this company can become the next Champion, but time will tell. I don’t think you can go wrong with quite a few dividend paying companies, especially here in the states.

      Best of luck building your own fund.

      Take care.

  4. A Frugal Family's Journey on February 1, 2015 at 16:24

    Nice add…can’t really go wrong with either VZ or T. Both offer very attractive and stable yields! We actually own both in our family’s dividend stock portfolio.

    Cheers to another $46.20 in annual dividends! AFFJ

    • DividendVet on February 1, 2015 at 20:17

      Glad to hear you are invested in T and VZ in your family’s portfolio. There is no doubt these companies are doing what they need to be doing and hopefully soon be rewarding its owners with some hefty dividend raises.

      Much appreciated!

  5. Dividend Growth Journey on February 6, 2015 at 16:55

    Congrats on adding VZ. I just initiated position in T last week as part of my weekly purchases. This is my first telecom purchase and plan to add to to my T position in the next few weeks and months.

    • DividendVet on February 7, 2015 at 18:54

      Nicely done, congrats on the first telecom purchase and welcome to the club.

      Thanks for dropping in.

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