Boston, MA 07/15/2014 (wallstreetpr) – Verizon Communications Inc. (NYSE:VZ) is a giant telecom operator with big investment in network infrastructure that not only helps make its services more reliable, but also generates income when used by the smaller operators that don’t own such vast network installations.
However, even with full knowledge about Verizon is a giant carrier with vast wireless infrastructure, it is still important to ask whether investors can expect something good from the company in the future. It is already in the public domain that the company is among the strongest dividend payers in the industry. It also has attractive shares repurchase program. Now, the chief question is; can Verizon Communications Inc. (NYSE:VZ) sustain its generous dividend, stock buyback and earnings growth?
The best way to answer these questions is looking into how the company is growing in terms of new subscriber additions especially in the wireless segment. Other indicators to look into are the company’s investment in network upgrade and new products.
Network investment
Verizon Communications Inc. (NYSE:VZ) continues to make strategic investment in 4G LTE rollout so as to yield high speeds, reliable and quality connections.
Network investment is important because it improves user experience. With the giant carriers touting network speeds to entice subscribers to their platforms, Verizon needs a strong network to beat competition, and that is one area that it has already realized remarkable achievement.
Because of its vast and reliable wireless network, Verizon has been able to attract new subscribers to its platform, which is important for revenue growth. The company registered 6.4 percent increase in revenue in the last quarter, mainly on the account of subscriber addition and stronger network. Verizon Communications Inc. (NYSE:VZ) anticipates a growth of 4 percent in the current fiscal.
Innovative products and efficiency
In addition to new subscriber addition and network upgrade, the company also continues to invest in innovative products so as to strengthen its product portfolio and boost revenue.
Continued focus on efficiency is enabling the company to improve its cash flow that gives it flexibility in meeting its dividend and shares repurchase obligation. Verizon Communications Inc. (NYSE:VZ) had more than $54 billion in cash of as the last reporting.
