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Global Communications

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Global Communications
Verizon Communications
Monique Williams
ACC/300
Tammy Domngern
03/01/2014

Verizon Communications

Why would Verizon Communications Corporation invest in stock and debt securities? Verizon Communications offer a Direct Stock Purchase and Share Ownership Plan. This plan allows participants to invest in Verizon Communication Stock conveniently and economically. Verizon Communications invest in stocka and debt securities, for cash management, investment income, and strategic reasons. Verizon is one of the biggest companies in the telecom sector based on revenues and network coverage. They have one of the best wireless networks in the country that contributes a large amount of cash toward the total cash flow of the company. Over the period of 2013, Verizon has paid cash dividends of around $6 billion to its shareholders. At the same time, the company has repurchased common shares worth $153 million. So, in total, Verizon has returned over $6.1 billion to its shareholders over the past twelve months. The company has issued new debt of over $49 billion and repaid debt (in term of bonds) worth $8 billion. As a result, the net increase in total debt of the company comes close to $41 billion. The debt increase is mainly due to the acquisition of Vodafone’s stake in Verizon Wireless. Regardless of the sluggish growth rates in the industry, the company has a history of distributing attractive dividends to its investors.

References:
Verizon. (2014). Retrieved from http://www.verison.com/investor/direct.htm
Verizon. (2014). Retrieved from http://about.verison.com/compnay
SeekingAlpha. (2014). Retrieved from

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