Verizon: One Of The Best Dividend Stocks?

Verizon (VZ) is one of the biggest companies in the telecom sector based on revenues and network coverage. The company has one of the best wireless networks in the country, which contributes massive amounts of cash towards the total cash flows of the company. As a result of these massive cash flows, the company has been able to pay generous dividends in the past - the growth in dividends have been slow (around 3% per annum) but consistent, and the cash flows have been available to support dividends as well as capital expenditures. Regardless of the sluggish growth rates in the industry, the company has a history of distributing attractive dividends to its investors.

Verizon is one of the best dividend paying stocks in the sector, in my opinion. The company generates massive cash flows, and the acquisition of Vodafone's stake in Verizon Wireless will further enhance its cash flows available to shareholders. As a result, the dividends will continue to grow and the long-term stability of the dividends will be ensured. In addition, the total control on the most lucrative asset of the company will have a positive impact on the stock price and the company will be able to derive further growth from the wireless segment. In my opinion, Verizon will see a substantial rise in the stock price during 2014, and shareholders will benefit both in terms of dividends as well as capital gains.

Source: Seeking Alpha

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