Should you buy Verizon stock on the weakness post Q2 report?

Verizon Communications Inc (NYSE: VZ) has lost 10% in less than a week, much of which was related to its Q2 report on Friday. Still, the Chief Investment Officer at the Bahnsen Group remains constructive on the telecom stock.

Verizon did not have a promising Q2

Lower-than-expected earnings, trimmed guidance, and only 12,000 postpaid phone net additions – the recent earnings release wasn’t big on good news. Explaining why he still likes the stock, though, David Bahnsen said on CNBC’s “The Exchange”:

He’s convinced Verizon can withstand prolonged periods of challenging environment.

Bahnsen likes Verizon stock for the dividend yield

Verizon shares are now down about 20% from their year-to-date high. But Bahnsen dubs them a good pick on a rather lucrative dividend yield of 5.70%. He noted:

Telecom is a CAPEX sensitive business and so, Verizon might continue to struggle in the coming months. Over the long-term, however, it will come out a winner, Bahnsen concluded.  

Wall Street currently has a consensus rating of “hold” on VZ.