Verizon Communications
stock was having its best week since January following strong third-quarter financial results earlier this week.
Verizon
(ticker: VZ) shares surged after the phone company posted better-than-expected third-quarter earnings, with revenue that matched Wall Street expectations, on Tuesday. The company also reported a bigger net gain in postpaid phone subscribers than Wall Street expected.
“Our strong cash generation enabled us to reduce net debt, strengthen our balance sheet, and deliver a higher dividend to our shareholders,” Chief Executive Hans Vestberg said on a call to discuss the results.
Verizon pays a dividend of 67 cents a share, giving it a dividend yield of a touch less than 8% as of Friday afternoon.
“VZ remains the best dividend plays in our coverage,” Oppenheimer analyst Timothy Horan, who rates the stock as Outperform with a $43 price target, said in a note Tuesday.
“Debt remains high at $147 billion, but strong FCF will support the dividend and $6B-plus/year in debt reduction,” Horan added.
Shares of Verizon has climbed 6.8% this week, putting it on pace for their best week since Jan. 6, according to Dow Jones Market Data. The stock was down 2.3% Friday to $33.68.
Write to Angela Palumbo at [email protected]
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