Verizon is one of the world’s leading communication technology companies. Verizon Communications Inc., founded on June 30, 2000, is a leading provider of technology, communications, and entertainment media and services around the world.
Our simple guide will show you how to open a brokerage account and start investing in Verizon stock. Let’s dive in and review.
Quick Verizon History
On July 3, 2000, Verizon started trading on the New York Stock Exchange (NYSE) under the symbol VZ. Then on March 10, 2010, it started trading on the NASDAQ under the same symbol. In 2004, Verizon Communications joined the Dow Jones Industrial Average.
On July 27, 1998, Bell Atlantic Corp. and GTE Corp. merged to form Verizon. The company’s board was split between Bell Atlantic and GTE executives. Verizon Cellular, a wireless joint venture, eventually went on to begin their operations on April 4th, 2000.
Verizon Wireless is the largest wireless service provider in the United States by total number of subscribers since acquiring Alltel Corp. in early 2009. They spent almost $35 billion in 2014 and 2015 to manage and update its technology infrastructure. Verizon’s wireline network was supporting 9.2 million internet services by the end of 2015.
The Good and the Bad of Verizon Stock
There are many potential advantages to owning stocks or shares in a company. Here are some of the pros and cons of being a Verizon shareholder.
Pros of Owning Verizon Stock
- Verizon is known for their extensive network and add on services, helping them grow in the cellphone market
- Tracfone is the largest no-contract cellular service provider in the United States, with more over than 20 million customers. Verizon’s potential Tracfone acquisition could help grow the company.
- Verizon aims to provide a quicker service that is designed to appeal to businesses and more urban areas.
Cons of Owning Verizon Stock
- Verizon only has 4 million prepaid subscribers, compared to T-Mobiles 20 Mobile’s million plus and AT&T’s 18 million subscribers.
- Verizon’s CEO estimates that significant 5G sales will not start until 2022. Investing in 5G was very risky and could lead to losses in the billions.
Outlook for Verizon Stock
The stock of Verizon has been struggling due to poor growth and high expenses when implementing its 5G network. The company recently revealed that it would sell its media group to Apollo Global Management for $5 billion. Verizon has stated that it would retain a 10% interest in the new venture. Verizon would acquire $4.25 billion in assets, $750 million in preferential interests, and a minority stake in the company as part of the transaction.
Verizon’s net income in 2021 was $5.4 billion, up 25.4 percent from the first quarter of 2020, and adjusted EBITDA was $12.2 billion, up from $11.9 billion in the first quarter of 2020. They added 98,000 Consumer Fios Internet net additions, and 102,000 overall Fios Internet net additions. Verizon recorded $1.27 EPS in the first quarter of 2021, up from $1.00 in the first quarter of 2020. In the first quarter of 2021, total Verizon Media sales were $1.9 billion, up 10.4% year on year.
Steps to Buy Verizon Stock
To purchase Verizon stock, you must first open a brokerage account, then a trading account, deposit money, and then begin purchasing shares.
Step 1: Select a Brokerage
You must first locate a brokerage in order to purchase Verizon stock. You’ll need to locate a broker that can connect you to the NASDAQ and NYSE which is where the stock is sold.
Step 2: Open Up Your Trading Account
After you’ve selected a brokerage you’ll need to open an account with them. This account is only available through the brokerage online, and it helps you to keep track of your Verizon shares.
Step 3: Deposit Funds Into the Trading Account
The amount of money you can spend has little to do with Verizon and more to do with your financial status. Each broker can have varying minimum deposits and financing strategies, so make sure you understand the conditions of your chosen broker.
Step 4: Search for the Verizon Symbol (VZ)
A ticker symbol is applied to every stock because it helps investors quickly find different companies to invest in. Since Verizon is listed on both the NYSE and the NASDAQ exchanges, you can buy Verizon stock right away if you have a trading account.
Step 5: Purchase Verizon Stock
Determine how much stock you want to buy and how much you want to pay for it. You’d log into your online brokerage account, search for Verizon stock, enter the number of shares you want to buy, and press “Buy.” After you’ve purchased Verizon stock you would keep track of your shares and how they’re doing.
Is Verizon Stock a Good Buy?
Verizon’s Media division, which includes Yahoo, AOL, and other smaller brands, saw strong sales growth this past year. Overall, the company’s quarterly and annual reports reflect a favorable trajectory in the future. Investors seeking a high dividend yield may find Verizon’s stock to be very appealing.
Its revenue from cellular services is growing and is projected to continue to do so for several years. In the midst of a pandemic, Verizon can still post strong financial results and pay an excellent dividend to shareholders. With a generally positive trend, Verizon Communications Inc stock has a pretty good chance of doing well in the short term. If you feel like you need to discuss if this is a sound investment strategy, feel free to consult with a trusted financial advisor today.