Verizon Communications Inc VZ Dividends: Its History, Yield, Price, and Dates

These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. The telecom company believes this strategy will pay dividends over the long term by enabling it to generate more revenue per user.

Management will likely increase the dividend by another 2.0% or so. A Dividend Achiever is a company on record for increasing dividends every year. I will start with several key takeaways from the Verizon stock https://day-trading.info/ dividend analysis. The projected annual revenue for Verizon Communications is $143,056MM, an increase of 4.55%. As of March 4, 2023, the average one-year price target for Verizon Communications is $45.82.

Dividend Growth, Yield, and Consistency

It should allow the company to grow its cash flow — assuming there isn’t a deep recession — which should empower it to continue growing its dividend. As that graphic showcases, Verizon’s consumer segment contributed the bulk of its revenue (77%) during the fourth quarter. The company generates this revenue from providing wireless services (post- and pre-paid) and wireline services (i.e., Fios internet and video) to millions of customers.

• Also, a highly attractive valuation may not be as important if you dollar cost average into your dividend stock positions.
• The rating, on an A+ to E scale, measures institutional buying and selling in a stock.
• If you get in now, you can lock in that dividend payment and make a lasting impact on the income section of your portfolio.

On Verizon stock, the Verizon dividend yield, dividend growth, dividend safety, and much more. Because Verizon stock is a favorite holding among many dividend stock investors. Verizon Communications’s last quarterly dividend of $0.653 per share was on Jan 9, 2023 (ex-date).

I own Verizon stock and collect the Verizon dividend. To me, Verizon stock is most attractive when it yield at or slightly about 5%. Based on my review, I judge Verizon’s dividend to be very safe from a reduction for the foreseeable future. A corporation’s credit rating is similar to how your personal credit score works. On a side note, it’s important to keep an eye on your personal credit score. Also, it is important to note that the wireless segment accounts for virtually all of Verizon’s profits.

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Verizon also has partnered for Apple music services and with sports leagues. The mobile-phone giant faces a fierce marketing battle amid the deployment of 5G networks. Other market data may be delayed by 15 minutes or more. We’d like to share more about how we work and what drives our day-to-day business. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

Revenues grew modestly by an average of 1.68% to $136 billion, in line with Cash from Operations at a 1.67% average growth. We can see that the business is very stable, generating an enormous $35 billion in median Operating Cash Flow. We can also observe that Free Cash flow has been more volatile and is currently significantly below the median of $17.3 billion, at just $14 billion over the last year. This is a function of the increased Capital Expenditures over the previous years.

These stocks require the slimmest margin of safety within the stock universe. Over the long term, the return from dividends has been a significant contributor to the total returns produced by equity securities. Dividend a note on comparative advantage and money history for stock VZ (Verizon Communications Inc.) including dividend growth rate predictions based on history. We sell different types of products and services to both investment professionals and individual investors.

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Meanwhile, emerging 5G wireless apps could take years to generate significant revenue. Rather than buy Verizon stock, income-oriented investors might consider a large ETF such as SPY, which tracks the S&P 500. VZ has a dividend yield of 7.05% and paid $2.59 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Jan 9, 2023. Verizon Communications’s payout ratio of 51.1% is above the Communication Services sector average.

It is calculated by dividing a company’s price per share by its earnings per share. Business stability and consistent cash flow generation mitigate my concerns about higher debt. For income planning purposes, I make a dividend growth forecast for each of my dividend stocks. Grade indicates a quality company with a strong balance sheet, high earnings quality, and a positive business environment.

I expect dividend growth to remain low, but consistent. Most importantly, the dividend appears to have a high degree of safety from a possible reduction. Grade indicates earnings quality is poor and requires thoughtful due diligence. Grade indicates an extremely low probability of a dividend cut. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories.

Analyst Ratings

Verizon underperformed its peer group in practically every single category here. The company has shown a consistent dividend increase of around 2% over the last year, the previous 3, 5, and 10 years. The expected forward growth rate comes in even lower at 1.47%. Most metrics show a difference to the peer group of between -20% and -50%.

The wireless business includes voice, data, and equipment services. Furthermore, the company has developed one of the most extensive and reliable wireless networks in the US. Finally, wireless has the greatest profit as compared to Verizon wireline. Each stock is linked to its most recent dividend stock analysis.

Verizon Communications (VZ) Declares $0.65 Dividend

Instead, the Federal Reserve has caused much of Verizon’s woes. Verizon’s stock has moved inversely to treasury yields. Verizon Communications has increased its dividend for the past 18 consecutive years. Verizon Communications’s most recent ex-dividend date was Monday, January 9, 2023. Verizon Communications’s next ex-dividend date is Thursday, April 6, 2023.

Verizon generates ample free cash flow to cover its dividend payments. It shows the company has ample room to raise its dividend in the coming years. Or, withstand an earnings drop without having to reduce its dividend. On the other hand, dividend growth has been relatively modest.

Verizon Communications’s dividend yield is more than the Communication Services sector average. Verizon Communications’s current dividend yield is 6.98%. Yes, Verizon Communications has paid four dividends in the last 12 months.

Q1 2023 Verizon Communications Inc Earnings Call

Real-time analyst ratings, insider transactions, earnings data, and more. WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security. Dividend capture strategy is based on VZ’s historical data.

In it’s prior filing, the firm reported owning 73,687K shares, representingan increaseof 14.19%. The firmincreasedits portfolio allocation in VZ by 8.03% over the last quarter. Dividend Yield measures how much a company pays out in dividends each year relative to its share price. The stock sports an attractive 6.89% dividend yield, which also places it in red-flag territory. Often, when a stock’s dividend yield rises higher than 5%, it’s seen as a warning sign that the company won’t be able to pay its dividend obligations sustainably. If the economy becomes materially weaker, Verizon’s retail churn rate could rise even further, cutting into its revenue, earnings, and cash flow.

To close, I will repeat what I said at the beginning of this article. Verizon is a long-time, high-income producing core holding of many investors’ dividend stock portfolios. For an investor looking to initiate a position or add to a small position, price dips are usually a good time to buy. For a long-term buy and hold dividend stock investment.

Verizon Communications pays quarterly dividends to shareholders. Verizon Communications and Realty Income, two strong dividend stocks, again trended this week. Build conviction from in-depth coverage of the best dividend stocks. Intraday Data provided by FACTSET and subject to terms of use.