Verizon Communications Raises Dividend by 2%, Undervalued Stock with 4-Star Morningstar Rating

Verizon Communications raised its dividend by over 2% in January, making it the only undervalued company to do so. The firm has a 4-star rating from Morningstar analysts and a fair value estimate of $53.00. However, shareholder distributions are high, consuming nearly 60% of free cash flow over the past three years. The company has authorized a $25 billion share repurchase program, which may be too aggressive given current debt levels and the commitment to the dividend.