Verizon Communications Inc.

New York symbol VZ, provides telephone services in 28 U.S. states. Through 55%-owned Verizon Wireless, a joint venture with UK-based Vodafone, it also provides wireless service in all 50 states.

Shares of Verizon are down 28% in the past year, mainly due to concerns that rising inflation and interest rates are making it harder to sign up new subscribers. However, the company’s new 5G systems should help it win new customers. A new cost-cutting plan will also support its dividend.


VERIZON COMMUNICATIONS INC....
Traditionally, the price of most stocks, and the ETFs that hold them, drop during bear markets like the one we saw in 2022. However, certain segments generally perform better than the overall market during downturns—and bounce back faster, including during the 2000-2002 and 2008-2009 bear markets.


Below, we highlight three ETFs focused on resilient market segments: value stocks, military defence and healthcare....
AT&T and Verizon have both dropped since the start of 2022, mainly because rising interest rates have prompted income-seeking investors to buy bonds instead. Higher rates are also making it more expensive for them to build out their new ultrafast 5G wireless networks.


We feel the spread of 5G service will help them attract more customers, and prompt existing users to upgrade their smartphones....
These two leading U.S. telecoms are aggressively expanding their ultrafast 5G (fifth generation) wireless networks. 5G users tend to spend more than current 4G users, and that extra cash flow should support dividend increases over the next several years for investors in both firms.


AT&T INC....
Telecommunications form an integral part of economic infrastructure. At the same time, strict licensing standards and high capital requirements result in considerable barriers to entry for any firms trying to enter the industry. That helps explain why top telecommunication companies—plus the firms that supply their equipment or use their services for streaming and so on—continue to offer attractive prospects in growing markets.


Below we take a look at two ETFs that hold companies involved in various aspects of the telecommunications industry....
Governments around the world know the benefits that flow from upgrading infrastructure. However, stretched budgets because of the pandemic—as well as a reluctance to raise taxes—have limited the ability of governments to initiate new projects or to even expand existing ones....

In the past two years, AT&T and Verizon have shed their media and other businesses. That will let them focus on their main telecommunications operations, particularly as each of the companies rolls out its new, ultrafast 5G wireless networks.


So far, 5G users generate higher revenue than their current cellphone customers....
Some investors look to reduce volatility in their portfolios for a number of reasons. One is that they can’t sleep at night because they’re nervous about the market outlook. In that case, low-volatilty funds may cut your your losses or even leave you with gains when the market is falling, but they can limit your returns in a soaring market.


Another reason to aim to cut volatility is if you expect you will need to take cash out of your portfolio in the next year or two and you don’t want to risk having to raise cash by selling stocks at low prices.


Below we discuss two ETFs that aim to provide investors with lower volatility portfolios....

AT&T and Verizon have shed their media businesses in the past few years. As a result, they can now focus on their main telecom operations—and dividend increases.


AT&T INC. $21 remains a buy. The company (New York symbol T; Income-Growth Portfolio, Utilities sector; Shares outstanding: 7.2 billion; Market cap: $151.2 billion; Dividend yield: 5.3%; Dividend Sustainability Rating: Highest; www.att.com) is the largest wireless carrier in the U.S....
Rising interest rates mean dividend-paying stocks must increasingly compete for investor interest in fixed-income investments. However, sustainable dividends still offer an attractive and growing income stream for investors.


Meanwhile, dividend-focused ETFs can—but not always—follow strategies that we feel set investors up for maximum long-term gains with the least risk....