Credit: Shutterstock photoVerizon Communications' ( VZ ) top-line growth is picking up. The improvement is due to it having full control of Verizon Wireless, as well as consumers taking a shine to 4G smartphones and tablets.
In February, Verizon wrapped up its $130 billion purchase ofVodafone Group's ( VOD ) 45% stake in Verizon Wireless, which was a joint venture between the two telecom giants in 2000.
Verizon's first-quarter sales rose 5% to $30.8 billion. That was up from 3% growth in final quarter of 2013. Revenue from wireless climbed 6.9% and accounted for 68% of total sales. The company added 549,000 wireless customers in the first quarter.
In the second quarter, Verizon's revenue climbed 6% to nearly $31.5 billion. That was the biggest increase since another 6% gain in the fourth-quarter of 2012. Sales from wireless rose 7.5% and the company added 1.4 million wireless customers. At the end of the second quarter, Verizon had almost 105 million retail wireless customers.
The company's third-quarter results are due Oct. 21. Earlier this month CEO Lowell McAdam noted at an investor conference that growth in new wireless customers was running more than 40% higher so far in Q3.
Verizon has steady increased its dividend in recent years. On Sept. 4, the company hiked its quarterly dividend by 2 cents to 55 cents a share -- an increase of 3.8%. This marks the eighth straight annual hike. The dividend will be paid Nov. 3 to shareholders of record on Oct. 10.
On an annual basis, Verizon pays $2.20 a share, which works out to a yield of about 4.5%. This is one of the lowest yields among dividend payers in the Telecom Services-Integrated group. But Verizon has one of the highest Composite Rating among its peers.
Verizon's stock is sandwiched between its 10-week and 40-week moving averages as a potential base forms.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
