With a PE of 41, you buy verizon for its 4.2% dividend. Next year, the fiscal cliff will reduce that 43%
I don't even know how verizon pays its dividend, but with interest rates so low, vz can borrow to pay it, and it costs them little. but it should be raising eyebrows. and heres another possible problem. Will the cliff also eliminate all the government incentives verizon gets from extending and upgrading their network ? you'd think a company like vz, and others like GE, would really be worried about that, as they pay a negative tax rate.