Verizon Communications Inc. (VZ)’s Yield Is Creeping Higher

Further, Verizon’s forward price-to-earnings ratio is not unattractive as shown in the following chart.

Market Volatility

The following chart shows current and historical market volatility as measured by the market “fear index,” otherwise known as the “VIX.”

And considering the VIX is near historically low levels, now may be a good contrarian opportunity to consider “safe haven” stocks such as Verizon. Specifically, if and when “fear” returns to the market (which we believe it will), stocks like Verizon will likely hold up better than other higher risk investments, and Verizon will continue to pay its big safe dividends.

Conclusion:

Verizon Communications Inc. (NYSE:VZ)’s price is low because of uncertainty (and a general uneasiness) about the Yahoo deal, and because lower volatility safe-haven stocks are out of favor. We believe this type of contrarian special-situation can create some of the best investment opportunities, and we’ve highlighted a few more of them here: Six Special Situations Worth Considering. And if you’re simply a lower-risk, income-focused investor, now is a decent time to consider adding shares of Verizon.

Note: This article was written by Blue Harbinger. At Blue Harbinger, our mission is to help you identify exceptional investment opportunities while avoiding the high costs and conflicts of interest that are prevalent throughout the industry. We offer additional free reports and a premium subscription service at BlueHarbinger.com. If you are ever in the Naperville, IL, USA area, our founder (Mark D. Hines) is happy to meet you at a local coffeehouse to talk about investments. Please feel free to get in touch.