Summary
Verizon has a strong core of yield, cash flow and cash flow growth.
Who will lead the way in 5G? It seems likely the leader in 3G and 4G is a good candidate.
Verizon's promised cost savings are building up and could lead to a special dividend for investors.
Investors in Verizon (NYSE:VZ) may wonder why the company’s 12thconsecutive dividend increase was only a 2% increase. There are several factors that suggest the company has bigger things in store for stockholders. In fact, there is a growing possibility that a special dividend could be coming. Each quarter that passes, Verizon is promising significant savings, and investors should be excited for what’s next.
A strong core
Before considering whether Verizon will pay a special dividend or take some other action, we need to look at its cash flow. The company’s revenue increased by 2.6% annually last quarter. Novice investors might believe that a company growing its top line at a slow pace couldn't generate much cash flow growth.
