five top paying dividend stocks pt. 3
Post on 23-Jan-2015
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DESCRIPTIONThe top paying dividend stock number 3 is Verizon (NYSE: VZ). I’ve put together this report that features five of my favorite dividend-paying stocks that generate yields between 3% and 8%. You could say that these stocks offer the best of both worlds – solid dividends and growth potential. Happy investing!
- 1. Five Top Paying Dividend Stocks Part III Growth on the Horizon for VERIZON
2. Verizon (NYSE: VZ) Recent price: $ 47.00 Price Target: $ 54.00 Market cap: $ 196.5 billion Dividend (Yield): $ 2.12 (4.5%) TOP PAYING DIVIDEND STOCK NO. 3 3. The Verizon story is very much a tale of two segments. TOP PAYING DIVIDEND STOCK NO. 3 4. The $ 196 billion communications behemoth separates its operating revenue between its wireless and wireline divisions. The 2013 total? $ 120.6 billion. TOP PAYING DIVIDEND STOCK NO. 3 5. Verizon Wireline contributed $2.8 billion, a 15% year-over- year gain buoyed by higher demand for speedier broadband and its fiber optic offering, FiOs Revenue from Verizon Wireless, on the other hand, accounted for $117.6 billion as it provides service for 97% of the entire mobile population of America TOP PAYING DIVIDEND STOCK NO. 3 6. Verizon Wireless is by far, the bigger of the two tales and poised to grow even more. TOP PAYING DIVIDEND STOCK NO. 3 7. EMERGING GLOBAL MARKETS Its recent purchase of 45% equity share of Vodafone for $130 billion will push Verizon into growth markets like China and India to its current 31% global market (on top of 97% in the U.S.) The potential for highest growth in mobile traffic will be the Asia Pacific region, growing at a CAGR of 67% TOP PAYING DIVIDEND STOCK NO. 3 8. One research study, indicates that in China approximately 3 billion devices will be connected to the Internet by the end of 2016, compared to just 1.5 billion devices (approximately) in 2011. TOP PAYING DIVIDEND STOCK NO. 3 9. Indias production is on the rise as well, and the countrys mobile traffic growth was recorded at 112% year-over-year as of third-quarter 2013. China's rate grew 72% during the same period. TOP PAYING DIVIDEND STOCK NO. 3 10. THE WORLDS ONLY 4G NETWORK The rollout of 4G networks across the Asia Pacific region are on the rise and opens up further opportunities for Verizon considering the fact that Verizon's 4G network is the only 100% 4G network. TOP PAYING DIVIDEND STOCK NO. 3 11. With LTE (long-term evolution) service in 419 cities, Verizon is leading the race to build out faster networks; AT&T, the second-biggest American carrier, is in a distant second place, with LTE service in 77 cities. TOP PAYING DIVIDEND STOCK NO. 3 12. PRODUCT DEVELOPMENT Continued build-out of the 4G LTE network will enhance smartphone use by delivering higher data speed. The company has continued to enhance its 4G LTE smartphone lineup In the fourth quarter, Verizon Wireless launched the Nokia Lumia 2520, the Samsung S4 mini and Galaxy III mini, the HTC One Max and the BlackBerry Z30 TOP PAYING DIVIDEND STOCK NO. 3 13. Verizon is ahead of its goal for the network by already covering 200 million people, and each quarter it continues to add, on average, 950,000 new postpaid customers The company exceeded expectations in the fourth quarter of 2013 by adding 1.7 million TOP PAYING DIVIDEND STOCK NO. 3 14. Subscription based revenue model with wireless and wireline users paying recurring monthly fees to the company provides good visibility and consistent streams of revenue. TOP PAYING DIVIDEND STOCK NO. 3 15. While Verizon is obviously in growth mode and will continue to be in the future, another allure as an investment is its ability to turn revenue growth into cash flow. Free cash flowcalculated as operating cash flow minus capital expenditureswas outstanding for the year. Verizon posted $22.5 billion in free cash, a 45% increase over 2012. TOP PAYING DIVIDEND STOCK NO. 3 16. FREE CASH FLOW, is the cash that a company is able to generate after laying out money required to maintain and expand its asset base. Essentially, its the money that the company could return to shareholders if the company were to cease growing. TOP PAYING DIVIDEND STOCK NO. 3 17. Without cash, it's impossible to develop new products, make acquisitions, reduce debt, and of course, pay and maintain a dividendcurrently annualized at $2.12 and yielding 4.5%. TOP PAYING DIVIDEND STOCK NO. 3 18. ON AVERAGE, Verizon raises its dividend once a year and even did so in 2009 and 2010 when many banking and real estate companies cut or altogether stopped paying. TOP PAYING DIVIDEND STOCK NO. 3 19. LOOKING AHEAD... If you bought Verizon 10 years ago, the dividend was about $1.38 Thats the power of buying a high-yield growing stock Verizon's shares are trading at forward P/E multiple of 12.5 based on the current $4 earnings per share (EPS) Analysts have a one-year target of $54 or roughly 10% over the current market price TOP PAYING DIVIDEND STOCK NO. 3 20. CLICK HERE FOR MY TOP PAYING DIVIDEND STOCK NUMBER IV. TOP PAYING DIVIDEND STOCK NO. 3