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?
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.
Where are you getting your ludicrous information? VZ's PE ratio for 2013 is estimated at 17.01, down from 21 in 2012.
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 $2.15 in 2011."
GAAP accounting gives a PE of 150+. If you use the non-GAAP numbers, which I'm sure Verizon hopes you do, you get 21+.
Have you divided the stock price by the eps lately?
I have been investing in this stock since the gte/vz merger. I purchased it back in the 90's, at 26-28$/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