5 Stocks Smart Investors Buy During Recessions

4. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 69

Verizon Communications Inc. (NYSE:VZ) is a communications and technology firm. In late March, the company announced that it was teaming up with Live Nation in a multi-year deal under which the latter would market exclusive ticket pre-sales and 5G technology at different concert venues. The former is already under contract to deploy the new generation of internet technology at clubs, theaters, and amphitheaters of Live Nation around the United States. Live Nation will also provide exclusive access to the Plus Pay platform of Verizon under the deal. 

Verizon Communications Inc. (NYSE:VZ), in a move aimed at navigating labor troubles, recently announced that it would be raising the minimum wage at the firm to $20 per hour. The firm also announced premium pay differentials for managers who work on holidays. 

At the end of the first quarter of 2022, 69 hedge funds in the database of Insider Monkey held stakes worth $4.1 billion in Verizon Communications Inc. (NYSE:VZ), compared to 63 in the previous quarter worth $10.8 billion.

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Verizon Communications Inc. (NYSE:VZ) was one of them. Here is what the fund said:

“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like telecom (Verizon Communications Inc. (NYSE:VZ)). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”