Verizon: Delivering A Solid Dividend At An Attractive Valuation

Summary:

  • Verizon’s recent earnings were mixed, with in-line numbers for EPS but missing revenue expectations.
  • Despite the initial share price drop, investors are bidding VZ shares back up, but they still present an attractive value to long-term investors.
  • The Company remains focused on paying down debt and continuing on with a strong dividend yield of ~6.5% that’s set to continue to grow.
  • We’ve been utilizing options to generate additional ‘income’ from what is already providing strong quarterly cash flows.

April 18, 2018 - New York City, USA. Verizon store located in Manhattan.

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Written by Nick Ackerman

Verizon Communications’ (NYSE:VZ) latest Q2 results were mixed. Earnings came in line with expectations, but revenue expectations were a miss. Service revenue was noted as being one of the areas that were

Ticker Expiration Date Upper Strike Lower Strike Current Price Style Date Initiated Premium Collected Date Closed Closing Cost Gain/Loss
VZ 08/16/2024 $41.00 Rolled Calls 08/09/2024 $1.12 08/09/2024 $0.22 $0.90
VZ 07/19/2024 $41.00 Rolled Calls 03/25/2024 $1.53 07/08/2024 $0.54 $0.99
VZ 04/19/2024 $36.00 Rolled Calls 01/02/2023 $3.22 03/25/2024 $4.78 -$1.56
VZ 01/19/2024 $36.00 Rolled Calls 10/09/2023 $0.20 01/02/2024 -$2.74 -$2.54
VZ 10/20/2023 $36.00 Assigned Puts 07/17/2023 $3.11 Assigned $3.11
VZ 07/21/2023 $36.00 Rolled Puts 06/20/2023 $1.11 07/17/2023 $2.51 -$1.40
VZ 06/23/2023 $36.00 Rolled Puts 05/22/2023 $0.69 06/20/2023 $0.31 $0.38
VZ 05/26/2023 $36.00 Rolled Puts 04/25/2023 $0.37 05/22/2023 $0.29 $0.08


Analyst’s Disclosure: I/we have a beneficial long position in the shares of VZ, T either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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