Verizon Communications Inc. (NYSE:VZ) has added more than 3.50% in the last five days. The stock escaped the bottom at $46 and is now going higher. $46 is an important level for Verizon. Dividend interested investors should also consider the stock.
First, Verizon has always jumped whenever it hit $46. The last time the stock reached $46 was in May 2018. Before then, the level formed a formidable support zone, with gains recorded afterward. Verizon touched the $46 level, coinciding with oversold conditions as the RSI pointed at 30. Based on these observations, we can conclude that Verizon bottomed at $46.
Secondly, Verizon has been one of the strongest names this year, despite sliding to a four-year low. The stock is down only 3.36% year-to-date, lower than the minus return of 17.55% in the S&P 500 index. Besides, Verizon’s ability to pay high dividends compared to the S&P 500 has been a bonus. A dividend yield of 6.3% eclipses around 1.3% in the S&P 500 index. Investors consider dividend stocks viable in preserving incomes in an overheating economy.
Technical indicators suggest a further rise for Verizon
Source – TradingView
Technically, Verizon is escaping the $46 bottom. At the current $50, the stock is yet to reach the resistance zone at $54. We expected the current momentum to be sustained in the near term. The stock will face resistance at $54, and investors could cut their positions. We recommend a hold up to $54, although long-term focused investors can keep the stock.
Concluding thoughts
Verizon bottomed at $46 and will continue going higher. Stock fundamentals and technicals align to push the stock higher. The stock will face resistance at $54.
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