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Verizon FiOS EPS Impact

Verizon LogoVerizon (VZ) filed an 8-K with the SEC on Friday with some interesting information on FiOS.

Verizon also provided an update on its fiber-to-the-premises deployment strategy, known as FiOS, and indicated that the earnings dilution from FiOS is expected to be approximately 10–15 cents per share higher in 2006 than in 2005, or 25–30 cents per share.

Considering Verizon currently earns around $3 a share (and pays about a 5% dividend), giving up 10% of your profit to replace a 100 year old infrastrucutre seems like a small price to pay.


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