Verizon Communications’s most recent quarterly dividend payment of $0.6525 per share was made to shareholders on Wednesday, February 1, 2023. Verizon Communications’s next quarterly dividend payment of $0.6525 per share will be made to shareholders on Monday, May 1, 2023. The company reported Q4 in mid-January and managed to beat revenue estimates with EPS in line.
Total returns probably won’t be impressive, but at a 7% dividend yield with a pretty safe dividend, there isn’t too much one could do wrong here. Verizon Communications, Inc. is a holding company, which engages in the provision of communications, information, and entertainment products and services. It operates through the Verizon Consumer Group and Verizon Business Group segments. The Consumer segment provides consumer-focused wireless and wire line communications services and products. The company was founded in 1983 and is headquartered in New York, NY. As a long-term shareholder dating back to 2003, I would like to share my thoughts.
Grade indicates a low probability for a dividend cut and/or average safety risk. The Verizon dividend has been paid continuously since and increased for 18 consecutive years; qualifying the company as a Dividend Contender. We have 9 different ratings for every stock to help you appreciate its future potential. Sign up to get 4 months for only $40 (save over $99)! Introducing OptionsTrader by IBD IBD has entered the world of options!
Does Verizon pay a dividend?
– The Board of Directors at Verizon Communications Inc. (NYSE, Nasdaq: VZ) today declared a quarterly dividend of 65.25 cents per outstanding share, unchanged from the previous two quarters. The quarterly dividend is payable on May 1, 2023, to Verizon shareholders of record at the close of business on April 10, 2023.
The current dividend yield for Verizon as of March 15, 2023 is 7.14%. The company sweetened the deal for investors on Tuesday, declaring a dividend increase for the 16th straight year. A solid dividend-paying company usually has investment-grade ratings. And increase those dividends annually by a consistent amount while maintaining a strong balance sheet. As we know, the company pays a quarterly cash dividend.
Past performance is no guarantee of future results. The telecommunications giant’s board declared a quarterly disbursement of 65.25 cents a share, up 2% from 64 cents. But decision making should also involve an analysis of price movements and returns. To help you, here is the VZ 10-year price movement report.
Verizon Communications Dividend Yield % Calculation
So, I like to check the dividend payments against free cash flow. Since dividends are paid from the cash left over after a company pays https://day-trading.info/ for its capital expenditures. And follows a dividend payment pattern similar to a lot of U.S.-based dividend-paying companies.
Compared to its Communication Services sector average of 40.1%, Verizon Communications’s payout ratio is 27% higher. Because of that, the revenue source is less secure than that from a large business or government customer. We can see that in a higher churn rate, which is the rate customers stop doing business with an entity.
Bank Of Americaholds 62,054K shares representing 1.48% ownership of the company. In it’s prior filing, the firm reported owning 70,960K shares, representinga decreaseof 14.35%. The firmdecreasedits portfolio allocation in VZ by 13.52% over the last quarter. Charles Schwab Investment Managementholds 85,877K shares representing 2.04% ownership of the company.
Is Verizon A Buy Or Sell Amid More Management Changes?
Grade indicates a company with a good balance sheet, good earning quality, and a stable business environment. The margin of safety required should be greater than stocks with an A grade but less than the average stock. In terms trailing twelve months of dividends issued, VZ has returned $10,286,000,000 US dollars — more than 97.79% of public US dividend stocks. Geode Capital Managementholds 79,683K shares representing 1.90% ownership of the company.
As a potential new shareholder, or one looking to make an add-on buy, you may want to receive the next Verizon dividend payout. To do so, you must complete your investment before the ex-dividend date. Recent investments, including fiber network construction, have supported the wireless business in addition to expanding traditional fixed-line capabilities.
VZ Verizon Communications Inc.Dividend History
The forecasts range from a low of $33.33 to a high of $67.20. The average price target represents an increase of 19.80% from its latest reported closing price of $38.25. Get Started Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content. Track the latest news and stocks to watch in the… VZ stock holds a Relative Strength Rating of 22 out of a best possible 99, according to the IBD Stock Checkup. The best stocks tend to have an RS rating of 80 or better.
Cable TV companies currently dominate in residential broadband. The telecom said its fixed broadband service will reach 30 million homes by the end of 2023. Now that Verizon owns sufficient 5G midband spectrum, its network buildout will be key. Verizon aims to reach 175 million people by the end of 2022 with midband spectrum-based 5G services that provide faster data speeds. T-Mobile US’s acquisition of Sprint created a stronger rival.
Especially considering the stock has a moderate dividend yield. Verizon rewards shareholders with dividends every 3 months or 4 times per year. Each quarterly dividend payment is one-fourth of the annual rate. While VZ stock has consistently underperformed the S&P 500, the telecommunications giant often attracts income-oriented investors, thanks to its dividend. If 5G wireless services reignite earnings and revenue growth, however, Verizon stock might have much greater appeal. If you get in now, you can lock in that dividend payment and make a lasting impact on the income section of your portfolio.
The margin of safety required is greater than A & B stocks, but less than D & F stocks. The company’s 3-Year dividend growth rate is 0.06%, demonstrating that it has increased its dividend over time. Verizon is primarily a wireless business (nearly 80% of revenue and nearly all operating income). It serves about 93 million postpaid and 23 million prepaid phone customers via its nationwide network, making it the largest U.S. wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 25 million homes and businesses, and nationwide enterprise services.
Grade indicates earnings quality is acceptable or average. Grade indicates earnings quality is good and/or above average. Grade indicates earnings quality is high or far above average. Verizon stock also holds an IBD Composite Rating of 29 out of a best possible 99. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
In case you had bought shares three years earlier for $1000 on Oct 02, 2019 at 58.91, your payout can be computed as shown. This share price information is delayed by 15 minutes. And I expect Verizon stock to continue to be just that. Even as we weighed the pros and cons of company dividends. However, Verizon’s ratings tend to be at the lower end of the investment-grade scale.
The firmdecreasedits portfolio allocation in VZ by 2.33% over the last quarter. Verizon’s long-range problem is that the U.S. wireless market is buy and sell in currency pairs saturated. Many consumers have delayed upgrading to new smartphones. Plus, data-gobbling mobile video hasn’t panned out as a big moneymaker.
Companies That Have All American Earnings
With a yield in that range, I also want to count on the stock for annual dividend growth too. At times, Verizon’s dividend yield was more than 5%. But a dividend investor knows that dividend yields have an inverse relationship to a company’s stock price. The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company.
- To help you, here is the VZ 10-year price movement report.
- The dividend payout ratio of Verizon Communications is 51.1%.
- The only investment horizon discussed on this channel is long-term investments, preferably with decades of growth runway.
But Verizon is much more exposed to the U.S. wireless market than rival telecom AT&T. Verizon gets nearly 85% of adjusted earnings from its wireless business. In a bright spot, Verizon in November finally closed the $6.25 billion acquisition of Tracfone from Mexico-based America Movil . One overhang on VZ stock involves midband radio spectrum it bought for 5G wireless services. Verizon stock spent $53 billion in a government auction, including incentive payments to satellite operators and clearing costs. The purchase of midband spectrum for 5G services will delay a VZ stock buyback.
Verizon Communications Inc. stock underperforms Thursday when compared to competitors
For the December quarter, Verizon earnings were $1.19 an adjusted share, down 10% from a year earlier, excluding items. New York-based Verizon has partnered with Walt Disney in video streaming services. Disney and Verizon in August expanded their streaming partnership to include Hulu and ESPN+.
Now, as promised, let’s discuss Verizon’s dividend growth. Verizon’s ex-dividend date falls in the month PRIOR to when it pays dividends. Ex-dividend typically falls on or around the 9th day of the month.
How many times does Verizon pay dividends?
The previous Verizon Communications Inc dividend was 65.25c and it went ex 2 months ago and it was paid 1 month ago. There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 2.0.
Let’s look at the company’s financial position next. Then we can make an assessment of Verizon’s dividend safety. Except for where additional debt is used to make big business investments. Specific to the dividend, the company stated it is “positioned to support further consistent dividend increases”. It’s clear the company has established a nice history of increasing dividends.
Where will Verizon stock be in 5 years?
Verizon (VZ) Stock Price Forecasts
According to its predictions, the value of the Verizon VZ stock could rise to $67 by the very end of 2023, rising to $75 in 2024, and achieving a mean price of $82 by 2025.