In the hyper competitive US communications sector, money is the difference maker. Last year, Verizon Communications (VZ) spent $16.7 billion on network, and it plans to dish out another $17.5 billion this year, observes Roger Conrad, utility sector specialist and editor of Conrad's Utility Investor.

The company recently sold $1 billion in 10-year green bonds at a cost that was 14 percent lower than expected. That’s just the latest demonstration of this company’s superior access to capital, even as it generates $18 billion in free cash flow this year, or twice its total dividends.

That’s a critical advantage in the race to deploy America’s first true 5-G communications network, capable of providing revolutionary applications and services at many times the speed of today’s 4-G wireless networks.

Verizon successfully conducted “edge computing” tests that halved network latency, which is the time it takes for information to make a roundtrip. That’s a critical advance for remote control of transportation, as well as data processing and Automated Intelligence enabled facial recognition.

To date, the company’s rivals have basically asserted their networks will be just as good even after 5-G. We heard the same thing earlier this decade when Verizon beat everyone to 4-G, thereby firmly establishing market leadership. And CEO Hans Vestberg has focused the company squarely on being first and best this time around.

I’m most impressed by the fact Verizon hasn’t had to sacrifice its present for the future. Last year while out-investing everyone in 5-G, the company cut debt by $5.2 billion, raised dividends 2.2 percent and beat earnings per share guidance with a 25.9 percent boost.

In addition, Verizon added 1.2 million wireless customers and held postpaid phone churn to an industry low 0.82 percent. It added 54,000 broadband FiOs customers, stayed on track for $10 billion in cost savings by 2021 and reset its lagging media operations.

The upshot is the highest percentage bet on US communications’ future is also a solid current value proposition, yielding nearly 5 percent and selling for just 11.5 times expected 12 months earnings. Lock away this stock whenever it’s below our target of $55.

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