Verizon Communications: A Dividend Stock for Income Investors

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Verizon Communications($NYSE:VZ) is a large American telecommunications company that has posted decent growth in recent years. However, the company’s share price has collapsed in recent months to a new 6-year low of $40.55. Despite being in a competitive industry, Verizon is known for its high dividend payments. For investors looking for a high but reliable dividend, with the prospect of single-digit growth going forward, this stock may be for them.

Dividends

Verizon Communications is a large telecom company with a history of paying dividends to shareholders. For the second quarter of fiscal year 2022, the company issued a dividend per share of 2.56 USD, and for the last two years it paid dividends of 2.54 USD and 2.48 USD. Its dividend yields from 2020 to 2022 are 4.19%, 4.41%, and 4.71%.

Thus, the company’s three-year average dividend yield is 4.44%. If you are looking for dividend stocks, Verizon Communications could be a good option.

Share Price

The media coverage of VERIZON COMMUNICATIONS has been mostly positive lately. However, on Wednesday the stock opened at $40.7 and closed at $39.5, down by 2.7% from the previous closing price of $40.6. This dip may be due to concerns about the company’s future prospects, as it faces stiff competition from other telecom providers.

VI Analysis

Verizon Communications is one of the leading telecommunications companies in the world. The company has a strong track record of paying out dividends, and is classified as a “cow” by VI, a type of company that has the track record of paying out consistent and sustainable dividends. Verizon Communications has an intermediate health score of 6/10 with regard to its cashflows and debt, is likely to pay off debt and fund future operations.

The company’s fundamentals reflect its long term potential, and the VI app makes analyzing these fundamentals simple. Based on the VI Star Chart, Verizon Communications is strong in dividend, profitability, and medium in asset, but weak in growth.

Summary

The company has a strong balance sheet, with over $40 billion in cash and investments. The company also has a growing wireline business, which provides broadband, TV, and voice services to over 10 million customers. In addition, Verizon has a growing media business, which includes AOL and Yahoo.