After underperforming for years, the communications sector has evolved into an attractive source of very steady earnings, and huge Verizon is a case in point. Growth isn’t overwhelming, but VZ shares trade at such a low valuation (P/E Ratio of 13.2 trailing, 13.1 forward) that any upside surprise at all will almost surely mean capital appreciation. One place to look for growth is Verizon’s newly reenergized online presence, comprising AOL and Yahoo, which Verizon essentially picked up in a “You haul it away—it’s yours” deal. Currently, the very steady dividend yield is 4.5%.
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