Did a thread on $T last week

But what about their biggest competition $VZ (Verizon)?

Here's my comparison of $VZ to $T and why you might want to hold it instead

(THREAD)

$VZ is in communications like $T but trades at a higher price ($55) and has a lower dividend (4.6%)

Theyre in the same retail space (cell phones), but completely different

What makes them the most different?

Debt, thoughts on streaming, and overall business model

1. Debt

$VZ has kept their debt around $105 b. while $T has $160 b.

Where did the extra debt come from for $T?

$T swung a wide net, buying assets (Ex. Time Warner for 109b.)

$VZ created partnerships instead, keeping debt low

Debt is only a problem if you can't pay (both can)

2. Streaming

$T has a riskier bet selling their streaming services than $VZ does selling their partnerships

It's risk-reward. $VZ is willing to give up profit to keep debt low and not be tied down

$T is stuck selling HBO Max because they own it, but could see more profit

3. Business model

Who's right?

Both companies have stuck to what has worked for them

$VZ takes a more specialized approach

$T takes a more broad appproach

Both work respectively

4. Who should I invest in?

It's ultimatley up to you, it's your portfolio

I like $T more because of their Aristocrat status, but I do own some shares of $VZ

Either can supplement a portfolio very well, it just depends on your strategy