Crushed From $60 To $40, Is It Time To Buy 6.6% Yielding Verizon?
VZVerizon(VZ) Seeking Alpha·2024-05-01 05:34

photobyphm Telecommunication businesses have historically been seen as popular choices of income investors thanks to their high dividend yields, even as the growth has peaked for most. Yet, the businesses have been out of favor, ever since the Fed hiked interest rates to 525 basis points in just 16 months, to fight inflation. The reason is twofold: Telcos require major capex investments in their infrastructure to keep up with the breakthroughs in technology, piling up debt which acts as an anchor on future ...