Verizon Communications Inc.(NYSE: VZ) gets a lot of attention from institutional investors.
For Q1 2021, Berkshire Hathaway ( NYSE: BRK.A ) revealed a position of 146,716,496 shares - a stake valued at US$ 8.22b at the current price.
Ultimately, Verizon is a mature company that fits the mature investors’ expectations — slow and continued growth with solid yields, as evident from the interest that it gets from Buffett.
Looking at the recent stock movement, even the volatility of 2020 didn’t make a significant impact on the price. As the price has been stuck in a $50-$60 range for over 2 years.
Meanwhile, the company has been working on expansions, recently announcing an acquisition of Senion - a global leader in location-responsive solutions. The indoor location market is one of the latest booms as it solves the navigation problems in 3D space - something that the global positioning system (GPS) struggles at.
There are broad applications for this technology. From retail stores, warehouse operations, to emergency response services, Verizon is well-positioned to leverage its size to succeed in this field.
Furthermore, after selling the media business (with brands like Yahoo and AOL), Verizon freed up over US$ 5b to use in launching the 5G Ultra Network and grow its core business.
With Verizon Communications yielding 4.5% and having a 14-year history of dividend growth, it would not be a surprise to discover that many investors buy it for dividends. When buying stocks for their dividends, there are few factors to consider whether these dividend payouts are sustainable.