If you believe Verizon is going down, or if there is a better company with greater growth potential and dividends.
A 4.3% dividend is a healthy dividend. It has a PE of 11 versus the industry which has a PE of 29. (This indicates the stock is a better value than other stocks in the industry. Most analyst recommend to hold or buy the stock. It has a 48% return on equity and an 11% profit margin. It's earnings grew 24% last year. It will not be that easy to find a much better value stock.
The primary problem is the performance of the sector has been down. However, this may not last forever.
Also, MUX is operating at a negative cash flow. It's not even making money. The S&P has grown allot, but it is way overbought compared to its 200 day moving average. I don't disagree buying an index, that's a great strategy. However, I'd wait for the market to pull way back in the next year .
You can use the buy and hold method but it is much better to learn how to read a chart and to get in and out with profits then sit through the wild swings for years and years, You can exit the market on the long side when the market is dropping and get into inverse etfs. Understanding when to sell at highs or close to and re-buy on the dips will make your account that much better. There are too many stocks that can be making you money then the buy and hold method, you could sell VZ at 50 and re-buy it at 42 and so on instead of holding.
Because Verizon pays a dividend of $2.12 per share (equal to a yield, currently, of 4.30%)...
It's one of the current "Dogs of the Dow"....if you can afford the investment, and would like to make an annual return twice that of the Dow 30, buy equal dollar amounts of each of the Dogs today, hold them for 13 months (thus avoiding any short-term capital gain tax), then sell them...and repeat...
Twenty minutes work a year...
The s&p500 was up 32% last year, and up 6.5% ytd. If you're not at least matching the market's return, what's the point???
Personally I'd sell & buy either the s&p500 index, or the total market index.
I have stock in Verizon, which as hovered between $42-$52 per share for the past 2 years. Aside from having money set aside in case of an emergency, why should I continue to leave it with VZ? In hopes they strike a major deal one day that skyrockets the value? It just seems like a very stable safe stock, which will not fluctuate much and therefore not make me much money. Unless I am completely missing something?
