Verizon Stock Analysis: Is The 8% Dividend Safe? Lead Cables Issues + High Debt | VZ Stock

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In the past couple of years, Verizon (NYSE: VZ) invested a massive amount of money into 5G. Following the initial C-Band spectrum auction which cost them around $45 billion, Verizon is now finally able to provide real 5G - and I say that because what was available before was more of a trial that wasn’t really very efficient. Now, Verizon has secured a large chunk of the spectrum that allows them to cover a decent area without having to build towers in every block, and also provide a real 5G speed at the same time.

Here is the video with more technical details about the C-Band spectrum auction: https://youtu.be/Eb7QM5w1uLA

With Verizon's stock now at the same level as in 2010, I believe there is some good potential in Verizon, especially as a high dividend investment.

Even to this day, they are investing a lot of money into 5G, which explains the higher than usual CAPEX. However, when they are done and - by the way, they also have some cost-reduction initiatives going on - that should increase the free cash flow a lot.

Based on the company's latest earnings report, we can see that the free cash flow is improving thanks to the higher cash from operations and the lower CAPEX.

Proving the market that they can get back to this point and - you know - save and generate so much money, could by itself boost the stock price a lot, or at the very least it would put Verizon in the undervalued territory. On top of that, Verizon also has the potential to grow thanks to 5G. Think about Internet of Things, autonomous driving, smart cities and this kind of trends, all of which can be very beneficial for a company like this.

Now, many of you probably wonder if the over 7.5% dividend is safe. The current payout ratio is around 50 to 60% of the net income, which is generally not bad. I also look into Verizon's high debt and talk about the lead cables issues that Verizon and AT&T are facing.

After that, I go through a Verizon (NYSE: VZ) stock valuation and discuss my price target and conclusions about this company.

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On my channel, you will find a wide variety of stock analyses - from gold miners such as Barrick Gold (NYSE: GOLD) and Newmont Mining (NYSE: NEM) to tech stocks like Nokia (NYSE:NOK), Alphabet (NYSE: GOOG/GOOGL), Intel (NYSE: INTC) and even healthcare REITs like Medical Properties Trust (NYSE: MPW) and Omega Healthcare Investors (NYSE: OHI).

Although I mostly focus on value investing, there will also be plenty of high-yield dividend stocks being analysed on the channel, especially if I believe that there is value in there.

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DISCLAIMER: I am not a financial advisor and nothing on this channel should qualify as investing advice. All information is provided for your education or entertainment. It is not intended to be investment advice. This information is general in nature and has not taken into account your personal financial position or objectives. Seek a duly licensed professional for investment advice.

0:00 Verizon C-Band Auction Results
0:35 Verizon Stock Review
1:20 How Safe is Verizon's Dividend?
2:23 Verizon & AT&T Lead Cables Issues + Fine Expectations
4:30 Talking About Verizon's High Debt
5:26 Verizon Stock Valuation & Price Target

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