When it comes to my new Deep Value Dividend Growth Portfolio (which is beating the market by about 7% so far), I’ve gotten several reader questions about why neither Verizon (VZ) nor AT&T (T) is in the portfolio.
After all, this portfolio is designed to be a diversified collection of quality, low-risk companies, all bought at great prices, that’s designed to deliver generous, safe, and steadily growing income no matter what the economy is doing. The portfolio’s goal is to deliver 13% or great total returns over time, meaning that investors would also likely enjoy market-beating returns as well.
I’ve also had several requests for a head to head comparison of these two telecom giants, which are beloved by high-yield income growth investors for their defensive, low volatility nature, and recession-resistant business models.
So, let’s take a look at how AT&T and Verizon compare to each other, to see which is the better company, the better investment today, and why I don’t currently yet own either in DVDGP (or my personal retirement portfolio).