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Verizon Communications Inc. (NYSE: VZ) issued Q3 data on Monday. According to the press release, the telecommunications entity made, on an adjusted basis, 60 cents per share. Disappointing, since that's six pennies less than last year's comparable number. However, it was a penny ahead of analyst expectations, according to Reuters.
Of course, when discussing Verizon, what tends to receive focus is cash flow. As we all know, the company is a famous dividend play. Many investors consider this angle to be not only valuable, but an added safety element as well.
Verizon did splendid business when it came to cash generation. Over the last nine months, $23.1 billion from operating activities flowed into the coffers. This represented a growth rate of 16%. Excellent. Even after capital expenditures and acquisitions were deducted from operational cash, there was more than enough left over for the dividend obligation.
Besides the quarterly-payout angle, there's another headline story for the company these days. As TheStreet.com mentions, Apple Inc. (NASDAQ: AAPL), Google Inc. (NASDAQ: GOOG), AT&T Inc. (NYSE: T), and Verizon are all involved in a situation with the Android device and the iPhone.
It'll be fun to see how all that plays out, but to be honest, shareholders mostly watch the yield on the stock. The best way to play Verizon is over the long term. It's been that way for a while, and I see nothing in the current earnings report to make me think any differently. Verizon has a decent yield attached to it. If you add to your position over time via dollar-cost-averaging, you should come out okay. Nothing is guaranteed, certainly, but this enterprise offers a strong collection of competitive brands, and it will continue to be a major player in digital/wireless technologies.
Disclosure: I don't own any company mentioned; positions can change without notice.
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