It is a very rare thing to find a business that has good organic revenue growth tailwinds, trades at a single-digit PE, and pays a >5% divided. That is where $VZ sits today @ $48. The shares were $55 (15% higher) before the earnings call. Management's commentary on inflation pressures spooked investors a bit as VZ is a large company that cannot necessarily adapt quickly to fast-moving economic situations.
However, what matters in an inflationary environment is pricing power and VZ has that since it is effectively a mobile data duopoly with $T. Demand for more mobile data is not going to be stopped. While 5G has been a bit disappointing, that reality is already reflected in the shares that were over $60 during peak 5G excitement.
$VZ is not going to make you rich overnight or impress your wife and mistress with your tech-savvy banter, but putting 5-1`0% of your portfolio in a stock that will likely compound returns for years at 10-12% will give you a very important ballast to your wealth-building efforts.
I bought some today.
Leave a Reply