Next Stock Purchase – Verizon (VZ)

One of my hobbies is investing in stocks.  I’m not a professional by any stretch of the imagination, but I’ve done pretty well for myself.  However, please take what I post with a grain of salt, you should do you own homework before investing in anything.

I’m a fairly conservative investor, I like to buy and hold companies for a long time.  I’ve been investing since my college days and have been at it for about 20 years now.  I’ve had some big winners and have lost my entire stake in other stock picks…remember Worldcom.  Fortunately, my winners have far exceeded my losers and even with the losers, I learned a lot in the process and believe I’m a much better investor result of mistakes I have made.  As I get older, I tend to favor more stable companies and becoming heavily invested in moderate to high yielding dividend paying stocks over the past year.  That is why I plan on adding Verizon (symbol:  VZ) to my portfolio this week.  Here’s why I like the stock.

1.  Solid high-cap company that is best in class in terms of quality of service.

2.  Pays a nice 5.4% dividend, providing smaller downside risk.  If the stock does fall, it is probably a great opportunity to buy more shares and obtain a higher yield.

3.  Now offers the iPhone, which should substantially increase their customer base.

4.  In an ideal position to benefit from the enormous amount of data that we Americans will consume over the next 10 years.

5.  Verizon has a Motley Fool 4 out of 5 star CAPS rating.

6.  Although pricey compared to its peers, believe you are paying for quality here.  Verizon has a forward P/E of about 14, which isn’t excessive.

Current closing price (2/18/11):  $36.62 per share

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