Reporting second quarter earnings recently, the company delivered $9.8 billion in cash flows from operations, up 29% on the second quarter in 2009. For the quarter the company reported a loss of $0.07c per share on the back of $2.3 billion in costs associated with workforce reduction. This was in comparison to earnings of $0.52c for the corresponding quarter in 2009 and was on the back of total operating revenues of $26.8 billion in the quarter.
Shares in Verizon (VZ) rose after the company came in above analyst expectations leaving the company trading on 6.44% dividend yield and a historical price to earnings multiple of 9.83 times normalized earnings.
Verizon (VZ) showed solid improvement in operational results in the quarter. The company spun off its wire line business to Frontier (FTR) on July 1 which is supposed to improve the company’s growth profile. Going forward the company is going to focus revenue growth on wireless, FiOS and global IP.
FiOS is a bundled home communications (Internet, telephone, and television) service, operating over a fiber-optic communications network that is operated by Verizon (VZ). The company also operates the nation’s largest and most reliable 3G which provides more coverage than any other U.S. carrier and is available where 289 million people live.
The strategy has resulted in strong customer gains with 1.4 million new wireless customers in the quarter. Verizon (VZ) added 196,000 new FiOS Internet customers and 174,000 new FiOS TV customers on to its fiber-optic network.
Verizon (VZ) also has a solid dividend history having paid a dividend every year since 1984. The dividend has however not increased for the past four years, and currently sits at $1 per share. For investors seeking a mixture of growth stock potential and a high dividend yielding stock, Verizon (VZ) fits the bill.