Verizon Is Down 40% From Its High. Time to Buy?
Shareholders of U.S. telecommunications giant Verizon Communications (NYSE: VZ) have had a tough year. Typically a defensive stock that isn't too volatile, Verizon's down 40% from its high and has fallen more than the S&P 500 in 2022. The company pays a juicy dividend that yields 7% at today's share price, a tempting prize for retirees and dividend investors.
So what gives? I'll dive into Verizon's struggles to determine whether investors should be worried about Verizon's dividend checks clearing anytime soon. Ultimately, buying the stock is a decision that could come down to your situation.
The telecommunications industry in the U.S. is an oligopoly, which means that a tiny group of companies dominate the market. In this case, Verizon, AT&T, and T-Mobile US serve most wireless users. You can compare the companies to see how well they're doing against each other. Most consumers in America have cellphones and hop between carriers over time.
Source Fool.com
