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How to buy Verizon shares | $59.82

Own Verizon shares in just a few minutes.

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Verizon Communications Inc is a telecom services business with stocks listed in the US. Verizon shares (VZ) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was US$59.82 – a decrease of 0.91% over the previous week.

How to buy shares in Verizon

  1. Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Verizon. Find the share by name or ticker symbol: VZ. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Verizon reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of US$59.82, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Verizon, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Verizon. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted Verizon's share price?

Since the stock market crash in March caused by coronavirus, Verizon's share price has had significant positive movement.

Its last market close was US$59.82, which is 2.71% up on its pre-crash value of US$58.2 and 22.48% up on the lowest point reached during the March crash when the shares fell as low as US$48.84.

If you had bought US$1,000 worth of Verizon shares at the start of February 2020, those shares would have been worth US$866.84 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth US$1,030.70.

Verizon share price

Use our graph to track the performance of VZ stocks over time.

Verizon shares at a glance

Information last updated 2020-09-20.
Latest market closeUSD$59.82
52-week rangeUSD$48.84 - USD$62.1499
50-day moving average USD$59.2988
200-day moving average USD$56.5626
Target priceUSD$61.17
PE ratio 13.1147
Dividend yield USD$2.51 (4.14%)
Earnings per share (TTM) USD$4.62

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Is it a good time to buy Verizon stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Verizon price performance over time

Historical closes compared with the last close of $59.82

1 week (2020-09-13) N/A
1 month (2020-08-24) 0.42%
3 months (2020-06-24) 10.92%
6 months (2020-03-24) 19.66%
1 year (2019-09-20) -0.78%
2 years (2018-09-20) 10.88%
3 years (2017-09-20) 20.90%
5 years (2015-09-20) N/A

Is Verizon under- or over-valued?

Valuing Verizon stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Verizon's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Verizon's P/E ratio

Verizon's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 13x. In other words, Verizon shares trade at around 13x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Verizon's PEG ratio

Verizon's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 4.0952. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Verizon's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Verizon's EBITDA

Verizon's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$47.5 billion (£37.4 billion).

The EBITDA is a measure of a Verizon's overall financial performance and is widely used to measure a its profitability.

Verizon financials

Revenue TTM US$129.7 billion
Operating margin TTM 23.87%
Gross profit TTM US$77.1 billion
Return on assets TTM 6.72%
Return on equity TTM 32.25%
Profit margin 14.76%
Book value 15.151
Market capitalisation US$249.7 billion

TTM: trailing 12 months

Shorting Verizon shares

There are currently 30.1 million Verizon shares held short by investors – that's known as Verizon's "short interest". This figure is 4.9% down from 31.6 million last month.

There are a few different ways that this level of interest in shorting Verizon shares can be evaluated.

Verizon's "short interest ratio" (SIR)

Verizon's "short interest ratio" (SIR) is the quantity of Verizon shares currently shorted divided by the average quantity of Verizon shares traded daily (recently around 11.3 million). Verizon's SIR currently stands at 2.65. In other words for every 100,000 Verizon shares traded daily on the market, roughly 2650 shares are currently held short.

However Verizon's short interest can also be evaluated against the total number of Verizon shares, or, against the total number of tradable Verizon shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Verizon's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Verizon shares in existence, roughly 10 shares are currently held short) or 0.0073% of the tradable shares (for every 100,000 tradable Verizon shares, roughly 7 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Verizon.

Find out more about how you can short Verizon stock.

Verizon's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Verizon.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Verizon's total ESG risk score

Total ESG risk: 20.87

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Verizon's overall score of 20.87 (as at 07/31/2020) is pretty good – landing it in it in the 25th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Verizon is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Verizon's environmental score

Environmental score: 3.75/100

Verizon's environmental score of 3.75 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Verizon is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Verizon's social score

Social score: 11.68/100

Verizon's social score of 11.68 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Verizon is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Verizon's governance score

Governance score: 8.93/100

Verizon's governance score puts it squarely in the 4th percentile of companies rated in the same sector. That could suggest that Verizon is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Verizon's controversy score

Controversy score: 3/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Verizon scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Verizon hasn't always managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Verizon Communications Inc was last rated for ESG on: 2020-08-01.

Total ESG score 20.87
Total ESG percentile 25.36
Environmental score 3.75
Environmental score percentile 4
Social score 11.68
Social score percentile 4
Governance score 8.93
Governance score percentile 4
Level of controversy 3

Verizon share dividends

53%

Dividend payout ratio: 53.25% of net profits

Recently Verizon has paid out, on average, around 53.25% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 4.14% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Verizon shareholders could enjoy a 4.14% return on their shares, in the form of dividend payments. In Verizon's case, that would currently equate to about $2.51 per share.

Verizon's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

Verizon's most recent dividend payout was on 1 November 2020. The latest dividend was paid out to all shareholders who bought their shares by 7 October 2020 (the "ex-dividend date").

Have Verizon's shares ever split?

Verizon's shares were split on a 1000000:93 basis on 1 July 2010. So if you had owned 93 shares the day before before the split, the next day you'd have owned 1000000 shares. This wouldn't directly have changed the overall worth of your Verizon shares – just the quantity. However, indirectly, the new 100% lower share price could have impacted the market appetite for Verizon shares which in turn could have impacted Verizon's share price.

Verizon share price volatility

Over the last 12 months, Verizon's shares have ranged in value from as little as US$48.84 up to US$62.1499. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Verizon's is 0.4342. This would suggest that Verizon's shares are less volatile than average (for this exchange).

Verizon overview

Verizon Communications Inc. offers communications, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. Its Consumer segment provides postpaid and prepaid service plans; Internet access on notebook computers and tablets; wireless equipment, including smartphones and other handsets; and wireless-enabled Internet devices, such as tablets, laptop computers and netbooks, and other wireless-enabled connected devices, such as smart watches and other wearables. It also provides residential fixed connectivity solutions, including Internet, video, and voice services; and sells network access to mobile virtual network operators. As of December 31, 2019, it had approximately 95 million wireless retail connections, 6 million broadband connections, and 4 million Fios video connections. The company's Business segment provides network connectivity products, including private networking, private cloud connectivity, virtual and software defined networking, and Internet access services; and Internet protocol-based voice services, unified communications and collaboration tools, and customer contact center solutions. It also offers a suite of management and data security services; domestic and global voice and data solutions, including voice calling, messaging services, conferencing, contact center solutions, and private line and data access networks; customer premises equipment; installation, maintenance, and site services; and IoT products and services. This segment had 25 million wireless retail postpaid connections and 489 thousand broadband connections. The company has strategic partnership with HERE Technologies and Dignitas; and Emory Healthcare to develop and test 5G Ultra Wideband-enabled use cases. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was founded in 1983 and is headquartered in New York, New York.

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