Summary
- Verizon hold an Investor Meeting to update the market on 5G prospects and the 2.0 network transformation.
- The wireless giant told a strong story of market potential, but mostly discussed the ability to defend and slightly extend the business.
- The company didn't make any case to alter analyst views of limited EPS growth through 2021.
- With the business spinning wheels, the dividend yield isn't attractive enough for any meaningful rally above the $55 to $60 range.
At the 2019 Investor Meeting, Verizon Communications (VZ) made a strong case for having the best wireless network and compelling growth opportunities. However, the company failed to make any real case for the shift to 5G driving meaningful improvements to the financials.
The domestic wireless giant failed to make any case for why the dividend would rise dramatically over the next few years, leaving our investment thesisintact that the dividend yield isn't going to dip below 4% or the equivalent of capping the stock price at $60.25.
Image Source: Verizon website
