Verizon Communications Inc. (VZ), Vodafone Group Plc (ADR) (VOD): The Telecom Olive Branch

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If it sells the Verizon Wireless stake, it just might push the company’s growth prospects higher as it looks to use the cash. Share buybacks and special dividends could also be on tap. However, an uncertain Verizon Wireless sale isn’t a good reason to jump aboard today.

News, News, News

Verizon and Vodofone are currently being driven by news. That makes each a risky option right now. Both are worth watching, however, since any deal could portend big changes. Vodofone would probably be the more interesting of the two if a sale takes place. AT&T, meanwhile, is probably the most boring of this telecom trio, but that could make its near 5% yield a lot more alluring than Verizon’s around 4% yield. And, it could be the biggest winner if Verizon Wireless gets sold.

The article The Telecom Olive Branch originally appeared on Fool.com and is written by Reuben Brewer.

Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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