Verizon Communications Inc. VZ 1% and its impressive 4.1 percent dividend has been one of the hottest large cap stocks in the market in 2016. Despite the stock’s 19.1 percent year-to-date gain, Argus analyst Joseph Bonner still sees significant upside for the stock following the acquisition of Yahoo! Inc. YHOO 0.86%.

“We believe the company’s long-term strategy remains intact as competition appears to be slackening – at least temporarily – in the wireless industry,” Bonner explains.

According to Bonner, Verizon’s recently-reported quarterly adjusted organic revenue decline of 3.5 percent is due to fewer-than-expected wireless phone activations on device installment plans, a decline in customer upgrades, and the migration of subscribers to unsubsidized rate plans.

Argus was pleased by the $4.8 billion price Verizon paid for Yahoo, especially given the $6-8 billion rumors that had circulated at the beginning of the bidding process. Bonner estimates Verizon paid roughly 6.2x Yahoo’s 2016 EBITDA.

“We think that Verizon got…

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