Verizon just delivered an excellent quarter and the future is bright. Verizon pays a outstanding 46 cent quarterly dividend, with plenty of cash flow to insure that it continues to pay and raise the dividend. The last quarter showed a 3.3% increase in EPS and a 19% increase in cash brought in from operations.
Verizon saw continued growth in its wireless business. Its wireless business now accounts for 57% of revenues. I can't stress how important it is that Verizon is increasing its wireless business. In this recession, the one thing that we have seen people cut down on when it comes to telecommunications is landlines. More and more people are disconnecting their home phones and just keeping cell phones. It is my personal prediction that in the future, home phones will be a thing of the past and people will just have cell phones. Because the one thing people are keeping is wireless phones, it is important for a telecommunication stock to have most of its business coming from wireless. Which Verizon does. That way, Verizon does not take a hit in revenue as people continue to get unemployed and dump their land line phones.
Verizon recently acquired Alltel, giving it the largest wireless consumer base and wireless revenue of any telecommunication company. Verizon is also number 1 in customer satisfaction, which is very important in the phone industry, guaranteeing that it will continue to see new and returning customers. Verizon purchased a huge amount of spectrum from the FCC, giving Verizon the ability to continue to support a growing customer base. Verizon also has the largest 3G network in America.
Verizon has a had a huge success in its new FIOS line. Verizon bundles Internet, t.v and phone for a low monthly cost. FIOS has added hundreds of thousands of new customers in the past quarter. Verizon also will see its competition weakened as AT&T losses rights to the IPhone. Rumours have been spreading that Verizon is in talks with Apple to acquire a deal for the new IPhone. Verizon boasts a very healthy balance sheet and was easily able to raise adequate funds to acquire Alltel. Verizon is the only American company to help build the Trans-Pacific Express Cable Consortium, connecting the U.S to mainland China, Taiwan, Japan, and South Korea, which will leave Verizon as a global leader in business solutions.
Verizon is poised to greatly advance its business in the future. The fact that so much of their business comes from the solid wireless industry guarantees that Verizon will continue to bring in the cash to pay off its excellent dividend.