Barron's bullish on Verizon

Some Wall Street analysts - other than those infatuated with cable - believe Verizon is a great bargain these days, as its diverse mix of businesses leave it well-positioned to ride out the tumultuous economic tides.

Last year, during the market insanity and economic downturn, Verizon put $17 billion into capital expenditures, bought Alltel, boosted its dividend by 7 percent, bought back $1.4 billion of its shares and showed solid gains. Profits were up 15 percent in the fourth quarter, based upon increased demand for wireless services, and the company took market share from cable companies on the strength of FiOS.

Put it all together, and Verizon has a "well-diversified revenue mix" says Barron's. Investors says the blue chip is a great bargain with some predicting the stock to rise 40 percent over the next year or two, from today's $30ish price to $41-$42 dollars a share. Verizon CEO Ivan Seidenberg sees $100 billion in incremental revenues over the next four to five years in a sweet spot of "Wireless, wireless data, broadband and video."

For more:
- Barron's love of Verizon. Article [1].

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