Nokia Corporation (ADR) (NOK): Verizon Communications Inc. (VZ)’s Growth Prospects Hold Despite Bottom Line Concerns

The rise of a third ecosystem could only mean better business for Verizon. For starters, most handset makers gravitate toward the carrier because of its 4G roll out. Data has become a primary selling point for handset makers, and getting a carrier that can fully bring out the data capabilities of a smartphone is paramount.

The relationship between Verizon Communications Inc. (NYSE:VZ) and Apple will also make it a prime target among handset makers moving forward. I see a lot of deals coming its way. Out of the 9.8 million smartphones that Verizon activated in Q4 2012, 63%, or 6.2 million units, were iPhones. If smaller handset makers might want to gnaw into Apple’s huge share in the U.S., Verizon will definitely be the place to start.

With a dividend of $2.06 per share, which comes to a yield of 4.29%, Verizon Communications Inc. (NYSE:VZ) certainly gives investors a reason to hold on. I recommend a long position in the stock.

The article Verizon’s Growth Prospects Hold Despite Bottom Line Concerns originally appeared on Fool.com and is written by Lennox Yieke.

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