I was looking at buying some higher dividend stocks, but holy smokes. PE of 150?! What gives? Why do people think Verizon is worth such a premium?
Where are you getting your ludicrous information? VZ's PE ratio for 2013 is estimated at 17.01, down from 21 in 2012.
Have you divided the stock price by the eps lately?
I posted a reply yesterday but it was removed, I guess because I included a link to Verizon's own earnings release. Here is the pertinent part:
"On an annual basis, Verizon reported 31 cents in 2012 EPS, compared with 85 cents per share in 2011. Adjusted annual EPS (non-GAAP) was $2.24 in 2012, compared with $2.15 in 2011."
GAAP accounting gives a PE of 150+. If you use the non-GAAP numbers, which I'm sure Verizon hopes you do, you get 21+.
it's a growth company ... p/e's are moot .... g
P/E ratios are never moot. I have put in a buy limit GTC order at 36, which I think is a reasonable price for VZ. Maybe I'll see it in the sell-in-May drop-off, maybe not.
I have been investing in this stock since the gte/vz merger. I purchased it back in the 90's, at 26-28$/sh and it's been up ever since. I am proud of Verizon. If you're worried about P/E, maybe you should go to AMZN? I am still buying. cd