Verizon - Final Thoughts

Ticker Symbol: VZ


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Final Thoughts

Traders will be looking for growth in Verizon's new wireless customers to compete with AT&T strong 1.2 million new clients added during Q1. The overall new wireless market is shrinking rapidly as consumers pull back on spending and dropout rates increase at telco carriers.

Major players like Verizon and AT&T are seeing renewed competition from discount carriers like Leap Wireless (LEAP) and MetroPCS (PCS), in addition to little brother Sprint (S)

From a valuation standpoint, currently, Verizon is fairly assessed. Verizon pays a very healthy 46 cent dividend, yielding close to 6% for longer-term investors looking to hide out in a safe dividend.

Verizon's Blackberry Storm is being outsold by arch-rival AT&T's ultra-popular iPhone, and is more expensive to produce. The Storm costs $202.89 for each unit while the iPhone can be made to the tune of $174.33, trimming down on Verizon's margins.

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