Verizon wants investors to know a few things before investing in Verizon Stocks in 2016. The investors must know that:
Verizon is going to continue its Network Spending: Verizon plans to continue its heavy investments in both wireless spectrum and network infrastructure with the aim of maintaining a top position. The increasing prevalence of web of things-enabled devices and enhanced consumer consumption of data is going to need continued investment. The company is also expected to continue its dividend while paying down debt and buying back shares.
Verizon has continued to work with a disciplined model of capital allocation, focusing on the priority to invest for the future. During 2015, Verizon has announced the divestiture of some wire line properties, proceeds from which it intends to use for paying down debts. The company also aims to execute its previously announced plan of raising its dividend by 2.7%.
Verizon Believes in Advertising: Verizon launched go90 and bought AOL with the partial aim of diversifying its revenue and thus making the company dependent to a lesser degree on its subscribers. Verizon believes that there is a large opportunity in making use of the programmatic platform with data from wireless customer base for connecting advertisers and consumers in a scaled and targeted manner with engaging and relevant experiences while guarding individual privacy.
Go90 is expected to let Verizon aggregate and capture audience, generate incremental revenue through advertising, and deliver mobile-first content. The company has plans of adding more content partners for go90 in 2016. Verizon’s new FreeBee Data offering is also an exciting venture that will enable companies to sponsor content to Verizon customers that they can watch without their data allotment getting depleted.
Unlimited Plans would not come back: Verizon has no plan of offering unlimited data plans like its competitors often regularly do. The company does not intend to react to everything in the marketplace.
Verizon, in 2015, has delivered balanced and strong results in a competitive and dynamic environment while returning a fair amount to shareholders. Simultaneously, the company acquired and built next-generation network capabilities that place Verizon to be an “innovator” in the present and future digital-first mobile world. The company continues to plan to stay on top.
In 2016, Verizon is working with a 3-tiered strategy of creating applications, content, and opportunities for incremental monetization, developing newer business models, and leading at the network connectivity level in the markets Verizon serves.