Verizon Communications (VZ) is getting risky to some investors out there. In essence investors are worried for three reasons: the prospects of higher interest rates, M&A activity into unrelated businesses (read: Yahoo (YHOO) & AOL) and fierce competition from the likes of T-Mobile (NASDAQ:TMUS) in particular.
As a result shares have now declined 10% over the past year, and are down nearly 20% from a high of $55. They are currently trading in the mid-forties. Does this mean shares look like a decent opportunity given the 5% yield, or should investors be worried at these levels?
Let´s start with a quick review of the events.