7 Defensive Stocks to Buy on Market Jitters - 1 of 7

#1 - Verizon (NYSE:VZ)

If I was putting this list together a year ago, I would have put AT&T (NYSE: T) ahead of Verizon (NYSE: VZ) on this list. Why?  Because I was buying into the “sum of its parts” argument that went with T stock. However, with AT&T’s recent decision to spin-off its WarnerMedia division, and the corresponding dividend cut when that deal is complete, I’ll slide Verizon here as a pure-play telecommunications stock.

5G will continue to be the catalyst for Verizon and the company has spent big recently. However, with approximately $150 billion in debt, the company is in a strong financial position. And Verizon’s dividend is already comparable to AT&T. So when AT&T cuts its dividend, Verizon will be a better value.

But the stock has more going for it than just its dividend. Analysts are forecasting that the stock has an upside of around 11%. That would be welcome news for investors who have held onto the stock for five years despite little to no growth to show for it.

About Verizon Communications

Verizon Communications Inc, through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business). Read More 

Current Price

$40.50

Consensus Rating

Moderate Buy

Ratings Breakdown

8 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.

Consensus Price Target

$44.50 (9.9% Upside)