Verizon Communications Inc (VZ)

[Mokyo Toe]

Yield is now 5.27% and rising. I can't resist adding a few here.

The scuttlebutt here is that with the Sprint/T-Mobile deal off, prices are going to fall industrywide. This could have the result of lowering revenues and might affect the dividend down the line. However, it is absolutely not a given; it is just speculation. Verizon can minimize any price reduction with improved service; there is also a limit as how low wireless rates can go, if they even do fall.

I think VZ will weather the storm. I also think analysts are overestimating any projected price declines.

Either way, we will see the signs long before anything happens. I think it's worth holding on for now.