Why Verizon (NYSE:VZ) is a Good Stock to Buy

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verizon communications

verizon communicationsWireless service provider giant, Verizon Communications (NYSE:VZ), is a great stock to buy. The interesting thing about Verizon is that its stock tends to trade sideways over the mid-term but over the long-term, it can appreciate quite well. If you look at an eight-year chart of Verizon, you can see that its fluctuation in value ranges from a negative 30% up to an upside of 30%. It’s all about when you buy into the stock.

The good news is that Verizon is a good stock buy primarily because Warren Buffett likes it. If you are the type of investor who would buy a stock based on fundamental value and hang on for many, many years to come, Verizon might be a great buy. It doesn’t have the sex appeal of other telecom stocks or even technology stocks, but the great thing about Verizon Communications is that pays a decent dividend every quarter. Its dividend also grows overtime, and the underlying business of this telecom giant is pretty solid. While it hasn’t completely avoided begin beaten up in the wireless service pricing wars between T-Mobile, AT&T, and Sprint, it has relatively come out unscathed.

It is no surprise then that a lot of stock analysts are quite bullish on this stock. It’s trading below $50 right now and based on its fundamentals, I wouldn’t be surprised if it trades for a lot more over the long haul. Keep in mind that we’re talking about a long hold situation here. If you’re going to buy into the stock, prepare to hold it for a long time. That’s precisely how Warren Buffett likes to roll, and this is one solid company to hold for the long-term.

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