Income Guru Rings up Verizon
04/15/2016 7:00 am EST
The bond market rally has rewarded blue chip dividends in a big way and I continue to stress owning high-yield and conservative dividend-paying US assets, asserts income expert Bryan Perry, editor of Cash Machine.
Though some pundits argue about excessive valuations, the 4.0%+ yields available from blue chip dividend stocks are too juicy to pass up for many a fund manager.
Indeed, getting two times the yield of the 10-year T-note and the S&P 500 is a real testament to risk-aversion in this market.
We're adding to our Safe Haven portfolio by taking a position in Verizon (VZ), the nation’s second-largest telecom provider.
The firm is showing excellent revenue growth in what is termed “the Internet of things” where everything from kitchen appliances to industrial sensors is dialed into the Web.
The company saw revenue in this division jump 18% in the past year and is only going to fuel strong growth going forward.
Verizon has a dividend yield of 4.2% that is as steady as it gets, with customer loyalty the highest in the industry.
Less than 1.0% of Verizon wireless customers switch to other service providers, which is the lowest churn rate among the competition.
Shares of VZ have broken out following a healthy fourth-quarter earnings report The stock trades at just 13 times earnings, below its five-year average of 13.6 times earnings.
In addition, VZ fits beautifully into our ultra-defensive portfolio of stocks that have the full attention of institutional investors seeking equity income with investment grade bond equivalent quality.
Meet Bryan Perry at the upcoming Las Vegas Money Show, May 9th-12th. Bryan will be sharing his top ETF ideas and preparing investors on how to invest for income when interest rates rise. Register here.
By Bryan Perry, Editor of Cash Machine
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