Verizon Dividend Stock

last updated on

Verizon Dividend Stock

Verizon: A High-Yield Dividend Stock To Buy

Stocks that offer a high dividend yield allow investors to get regular income. Picking a good dividend stock means you get a 4-5% return on your investment before factoring in the capital gains.

Dividend stocks are also known to raise their dividend payments from time to time. That's one reason why such stocks are often preferred by the long term investors.

Verizon Has 146.8 Million Wireless Connections

With that in mind, one high-yield dividend stock you should consider is Verizon Communications (VZ). It offers huge dividends and is also trading at a reasonable valuation.

What is Verizon Communications (VZ)? It is a wireless carrier and a big player in the US communication market. The data shows that Verizon has 16.8 million broadband connections. The number of retail wireless connections is 146.8 million.

In the USA, connectivity is as important as electricity or gas. So, this huge number of connections means recurring income for Verizon.

A strong and dependable revenue stream means Verizon can continue to pay its dividends. If we look, the management has been raising the dividend yield for 20 years in a row. The company's balance sheet is also very strong, and it can easily afford the payouts.

According to Verizon management, the free cash flow this year will be around $21.5 billion. This amount can easily cover the total dividend expenditures of Verizon.

If we look back, Verizon isn't exactly known for high growth, and that's normal for dividend stocks. However, connectivity has now become more important with the arrival of AI. This means exciting times are ahead for Verizon, which also happens to be a key connectivity company in the USA.

According to analysts, Verizon's earnings will grow by 8% annually in the next 3-5 years. So, if you are looking for a solid dividend stock with strong growth prospects, then consider Verizon.

Trending Stories