Verizon Hikes Dividend, Now Yields 6.2% As Stock Tops Buy Point
Wednesday, Sep 11, 2024 3:21 pm ET
1min read Based on the given rules, here's an investment article on Verizon's dividend hike:
Verizon Communications Inc. (VZ), the nation's largest wireless carrier, has announced a 1.25-cent increase in its quarterly dividend, marking the 18th consecutive year of dividend hikes. This move brings Verizon's dividend to 67.75 cents per share, yielding approximately 6.2% based on the current stock price. This article explores Verizon's dividend growth, its impact on investors, and the company's strategic focus driving this consistent payout increase.
Verizon's Dividend Growth:
Verizon has consistently increased its dividend, reflecting the company's strong financial performance and commitment to returning capital to shareholders. Over the past five years, Verizon's dividend has grown by approximately 17.5%, with an average annual increase of 3.5%. This growth has not only provided income to investors but also enhanced the company's stock price through reinvested dividends.
Comparing Verizon's Dividend Yield and Payout Ratio:
Verizon's current dividend yield of 6.2% is higher than the average yield of its competitors, such as AT&T (T) and T-Mobile (TMUS), which stand at approximately 5.5% and 4.5% respectively. Additionally, Verizon's payout ratio, which is around 50%, is lower than AT&T's 70% but slightly higher than T-Mobile's 35%. This indicates that Verizon has maintained a balance between rewarding shareholders and reinvesting in its business.
Verizon's Strategic Focus:
Verizon's consistent dividend growth is driven by its strategic focus on wireless service revenue growth, adjusted EBITDA expansion, and free cash flow generation. The company's investment in 5G networks, expansion into fiber broadband, and innovative services like myPlan have contributed to its strong financial performance. Verizon's commitment to these strategic pillars has enabled it to maintain a solid financial position and consistently increase dividends.
Hans Vestberg, Verizon's Chairman and CEO, stated, "Our strong focus on three key pillars – wireless service revenue growth, adjusted EBITDA expansion, and free cash flow generation – has once again put the Board in a position to raise the dividend."
Verizon's dividend hike is a testament to the company's financial strength and commitment to shareholder value. As Verizon continues to execute its strategic initiatives, investors can expect the company to maintain and potentially increase its dividend payouts. Verizon's strong dividend growth, combined with its attractive yield and strategic focus, makes it an attractive investment opportunity for income-oriented investors.
Verizon Communications Inc. (VZ), the nation's largest wireless carrier, has announced a 1.25-cent increase in its quarterly dividend, marking the 18th consecutive year of dividend hikes. This move brings Verizon's dividend to 67.75 cents per share, yielding approximately 6.2% based on the current stock price. This article explores Verizon's dividend growth, its impact on investors, and the company's strategic focus driving this consistent payout increase.
Verizon's Dividend Growth:
Verizon has consistently increased its dividend, reflecting the company's strong financial performance and commitment to returning capital to shareholders. Over the past five years, Verizon's dividend has grown by approximately 17.5%, with an average annual increase of 3.5%. This growth has not only provided income to investors but also enhanced the company's stock price through reinvested dividends.
Comparing Verizon's Dividend Yield and Payout Ratio:
Verizon's current dividend yield of 6.2% is higher than the average yield of its competitors, such as AT&T (T) and T-Mobile (TMUS), which stand at approximately 5.5% and 4.5% respectively. Additionally, Verizon's payout ratio, which is around 50%, is lower than AT&T's 70% but slightly higher than T-Mobile's 35%. This indicates that Verizon has maintained a balance between rewarding shareholders and reinvesting in its business.
Verizon's Strategic Focus:
Verizon's consistent dividend growth is driven by its strategic focus on wireless service revenue growth, adjusted EBITDA expansion, and free cash flow generation. The company's investment in 5G networks, expansion into fiber broadband, and innovative services like myPlan have contributed to its strong financial performance. Verizon's commitment to these strategic pillars has enabled it to maintain a solid financial position and consistently increase dividends.
Hans Vestberg, Verizon's Chairman and CEO, stated, "Our strong focus on three key pillars – wireless service revenue growth, adjusted EBITDA expansion, and free cash flow generation – has once again put the Board in a position to raise the dividend."
Verizon's dividend hike is a testament to the company's financial strength and commitment to shareholder value. As Verizon continues to execute its strategic initiatives, investors can expect the company to maintain and potentially increase its dividend payouts. Verizon's strong dividend growth, combined with its attractive yield and strategic focus, makes it an attractive investment opportunity for income-oriented investors.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.