The stock market just had its worst day of the year (Aug. 5) when the Dow plunged 767.27 points.
Investors looking for safety in bonds are out of luck, too. The current yield on a 10-year Treasury fell from an already-low 2% to just 1.6% after the U.S. Federal Reserve cut rates last week.
That's why the best dividend stock to buy could help you weather the storm no matter what happens next.
While Wall Street is panicking, Money Morning has found a stable U.S.-based dividend stock for you to buy right now. It offers a dividend yield as high as 4.4% – giving you added income even as the market bounces up and down.
Plus, the company has a history of strong performance during market downturns. While it dropped 35.16% during the 2008 crash, it fully recovered by 2012 and has jumped 136% since.
In comparison, its biggest competitor's share value dropped 44.4% in 2008. And it wasn't until 2016 that it recovered before dipping back down again – resulting in a 53.3% increase in value in the past 11 years.
So, this company not only weathered the 2008 recession, but also managed to grow its revenue every year since.
Even better, this dividend stock has growth potential.
It's at the forefront of the 5G revolution – the fifth generation of wireless technology that could make self-driving cars, remote robotic surgeries, and more a reality. And with its own 5G catalysts, this company's shares could see as much as a 60% boost in value within the year – momentum that could easily continue for the next decade.
So, with this company's strong history, high-yield dividend stock, major role in 5G, and expected growth, it's the perfect stock to not only ride the current volatile market, but also 5G's technological revolution.
The Best Dividend Stock to Buy
Verizon Communications Inc. (NYSE: VZ) isn't a flashy biotech, but there's a reason this telecom company is a great dividend stock to buy right now: It can make you a lot of money.
The rate cuts by the Fed dropped the 10-year Treasury yield to just 1.6%, making dividend stocks much more attractive than bonds. And Verizon offers a 4.4% yield to investors, nearly triple the return you'd get from the Treasury.
Plus, it certainly helps that during the 2008 recession, Verizon stock came out swinging – proving it can handle some of the most turbulent markets. In fact, its 2009 revenue was 11% higher than its revenue in 2008. And it has continued to grow for the past 11 years since – with its current revenue sitting 34.4% higher.
But Verizon's about to get an even bigger boost.
Verizon's latest focus on 5G has shareholders forecasting solid revenue growth over the next few years.
Since 2018, Verizon and other telecom companies have been spending heavily to upgrade North American networks to 5G. According to S&P Global, U.S. telecom companies spent $53.72 billion on 5G networks and infrastructure in 2018. Verizon contributed $16.66 billion to the total U.S. spending.
And this paid off for Verizon. It's the first telecom company to have launched a commercially available 5G service in nine cities, including Atlanta, Indianapolis, and Washington, D.C. Beyond that, it was also the first company to have a 5G-compatible phone through the Moto Z3.
But Verizon isn't just spending to expand networks in hopes that people convert to 5G over time. The company is actually providing incentives to switch over.
First, any customers who purchase its Samsung Galaxy S10 5G won't have to pay the additional $10 fee for 5G.
Secondly, Verizon offers a $200 prepaid MasterCard to customers who purchase the Galaxy S10 with an unlimited service package.
And its Q2 2019 report shows the strategy is working. In fact, Verizon's wireless subscriber count increased by 451,000, while its earnings per share (EPS) beat out expectations for the fourth quarter in a row with an EPS of 1.23.
This dividend stock's shares currently trade for $54.98. Wall Street analysts give it a high price target of $65 a share, a 20% jump from today's price.
We think it could go even higher.
We're confident that Verizon is greatly undervalued with a P/E ratio of 15 while the communication services sector has an average ratio of 23.82, according to Fidelity. And with the full rollout of 5G, this dividend stock's share prices could easily reach the same ratio. That means share prices could surge 60% higher thanks to 5G.
And that's just the icing on the cake for a dividend stock that already pays out regular income through its high-dividend yields.
The Latest in Mobile Tech Is Expected to "Dwarf" Industry Growth of the Last 7 Decades
Mobile communication is easily one of the most profitable industries on the market. It provides a service the world simply can't live without.
Think about how often you use your cell phone or send an email from your computer, not to mention the network-based apps that are now an integral part of our everyday lives.
Now imagine having invested in this tech from the jump…
Major cell tower companies have seen stock windfalls of 11,300%, 21,742%… even 85,900%!
But the latest advancement in the mobile outfit is predicted to blow those numbers away. Shareholders of a single stock could see profits for generations.
The largest mobile companies in the world are about to swarm on this new technology – meaning this could be the smartest deal of this lifetime.
This article is supplied courtesy of Money Morning.