With a Nearly 7% Dividend Yield, Is Verizon Stock a Buy on SpaceX Fears?
Verizon shares have dipped on fears that SpaceX could compete against it in the mobile space.
Overview
Mobile operator Verizon (NYSE: VZ) has seen its shares sell off in the wake of the SpaceX (NASDAQ: SPCX) IPO, lifting Verizon's dividend yield to 6.7%. The sell-off looks overdone in my view, making the stock an attractive buy at current levels.
Investors worry that SpaceX will use its leadership in satellite internet to challenge traditional mobile carriers like Verizon. However, there are multiple hurdles to this happening. Two of the biggest are technology constraints and regulatory issues.
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.