Prediction: Verizon's Purchase of Frontier Could Prove Costly for 1 Group of Shareholders

The news that Verizon Communications (NYSE: VZ) will acquire Frontier Communications Parent (NASDAQ: FYBR) appears to make strategic sense. For all of its focus on 5G, fiber remains a critical part of the broadband communications infrastructure, serving both consumers and businesses.Unfortunately for Verizon's shareholders, it has decided to buy Frontier at a time when the company faces significant financial struggles. Hence, even if the acquisition goes through, it is likely to happen to the detriment of a specific group of shareholders. Here's why.The most likely victims of the purchase are Verizon's income investors -- in other words, those who own the stock purely for the dividend.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool