Finally, an investment opportunity in Verizon is one way to have a stake in the growth possibilities of 5G networking. At its current yield in the 7% range, AT&T is a better income stock than Verizon (NYSE: VZ), whose yield is in the 4% range. In this video, we’re going to be performing a deep dive on Verizon’s dividend safety. Though taxed as such, dividends are not true income. Verizon Communications has a 4.3% dividend yield and has increased its dividend for nine years in a row. Many investors look at the Payout Ratio to determine dividend safety. VZ's dividend yield, history, payout ratio, proprietary DARS™ rating & much more! When Financhill publishes its #1 stock, listen up. Not all dividend stocks are created equal. But both Verizon stock and AT&T stock fell on Thursday. It also acquired media giant Time Warner. At its current yield in the 7% range, AT&T is a better income stock than Verizon (NYSE: VZ), whose yield is in the 4% range. Verizon Communications Inc. (VZ) Dividend Safety metrics. If free cash flow comes in just a little above expectations, the dividend safety rating will get an upgrade. Get access to all of the retirement secrets and income strategies from our experts! Verizon has a large number of investors counting on its steady dividend. Click Here to See a Full List of Marc's Appearances, Marc Lichtenfeld’s first book, Get Rich With Dividends: A Proven System for Double-Digit Returns, achieved best-seller status after its release in 2012. Access to SafetyNet Pro is reserved exclusively for subscribers of Marc’s newsletter, The Oxford Income Letter. 5G) that has a supportable dividend and great dividend growth prospects. (VZ is the newest stock added to the Reitmeister Total Return portfolio). To sort the good from the bad, I consulted a half-dozen dividend experts to point us to the safe dividend plays. The following video further discusses our view of Verizon’s dividend safety: Valuation & Expected Returns . ExxonMobil kept its dividend flat at $0.87 per share, the first time since 2002. Find the latest dividend history for Verizon Communications Inc. Common Stock (VZ) at Nasdaq.com. However, Verizon, the only other dividend payer, took more of an "all-in" strategy on 5G, foregoing the media ventures of AT&T. But unlike Verizon, AT&T has spent the last five years levering its balance sheet precisely in order to become more cyclical.". Morningstar has a “buy” rating and $82 fair value estimate for DFS stock. If anything, they’ll be on their phones even more – either for work or to kill time. Arguably the biggest uncertainty facing Verizon is future growth in wireless. You will want to do your research to ensure that you have chosen wisely. New York-based Verizon owns an IBD Relative Strength Rating of 86, of a best-possible 99. Their dividend yield (4.6%) isn't as gaudy as AT&T's, but it is much safer, and any safe dividend is flattered by the general decline in yields.". Morningstar has a “buy” rating and $82 fair value estimate for DFS stock. Payout ratio calculation and chart. Jordan Kendall-February 21, 2018. If free cash flow comes in just a little above expectations, the dividend safety rating will get an upgrade. SafetyNet Pro is a groundbreaking tool that predicts dividend cuts with stunning accuracy. As an added bonus you also get a very appealing 4.2% dividend yield (about 4 times the safe return of government bonds). Your email is safe with us. Verizon Communications Inc.(NYSE:VZ): Amid a low interest rate environment and an uncertain market, investing in dividend stocks is one of the safer options. Welcome! © 2000-2021 Investor's Business Daily, Inc. All rights reserved. Verizon is one of the most reliable dividend payers in the S&P 500. Dividend at Risk. When Financhill publishes its #1 stock, listen up. Verizon has raised its dividend every year for the past 15 years, so it has an impressive history. 7 Safe High-Yield Dividend Stocks Delivering 4% or More These seven high-yield dividend stocks have sturdy foundations, according to the DIVCON dividend-health … Chris Lange. Does This Defensive Dividend Have Staying Power. It is well covered by earnings and cash flow. Verizon Communications (VZ) has weathered the coronavirus bear market better than peer AT&T (T) while both dividend-paying telecom stocks are holding up better than the general market. Track the latest news and stocks to watch in the... Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months weeks of IBD Digital for only $20! IBD Live: A New Tool For Daily Stock Market Analysis, Find Compelling Growth Stocks With IBD's Stock Of The Day, View Breakout Stocks & Technical Analysis, Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists. Verizon’s dividend coverage ratio—its net income divided by its dividend payout—stands at a healthy 1.91. Verizon has paid uninterrupted dividends for over 30 consecutive years and has raised its dividend for 12 consecutive years. How Safe Is Verizon's Juicy Dividend? They are growing at a measured pace and are not taking on much debt to do so. XNew York… Read More Given the volatility in financial markets caused by Covid, it is becoming difficult to assess whether previous dividend forecasts are still useful. Unlike AT&T, Verizon has steered away from non-telecom acquisitions. Over the last 10 years, the dividend has climbed to $2.39. Description: Marc appears on Fox Business’ Mornings With Maria segment to discuss Gary Cohn’s resignation. The dividend also looks safe when you look at cash flow. There will likely be a large number of downgrades. Get market updates, educational videos, webinars, and stock analysis. It’s important to note that the dividend is safe. Verizon Wireless's products include wireless voice and data services as well as tool sales. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Verizon’s long history of paying dividends makes it one of the best dividend stocks around. Make more money in the stock market with MarketSmith—start your 4-week trial today! Authors may own the stocks they discuss. This involves looking for a number of safe stocks that are likely to continue paying dividends in 2020. In 2008, Verizon stock and AT&T stock plunged amid the collapse of Lehman Brothers and other global financial turmoil. Verizon stock began trading on July 3, 2000. To identify the highest-yielding S&P 500 stocks that are safe for investors, 24/7 Wall St. reviewed the 99 S&P 500 companies that are currently paying dividends of 3% or more. Holding Its Dividend Will Keep AT&T's Stock Safe. As an example: If you bought AT&T on 6/23/2015, you paid $35.91 It closed on 10/26/18 at $29.09 For that time period, you have a paper loss of $6.82 per share. Facebook. Dividend.com: The #1 Source For Dividend Investing. Newsletter FAQs | privacy policy. And management appears to … 5 min read. Will This 200-Year Dividend Streak Continue? | 877.808.9795 | 443.353.4621 | 105 W Monument Street | Baltimore, MD 21201. The dividends have been adjusted to account for any stock splits that have occurred. Verizon’s dividend is more likely to take a hit, however, as it has the bigger exposure to consumer wireless. Marc Lichtenfeld Discusses America’s Retirement CrisisOutlet: Bloomberg Radio But both Verizon stock and AT&T stock fell on Thursday. All investments carry risk and results are not guaranteed. Finally, an investment opportunity in Verizon is one way to have a stake in the growth possibilities of 5G networking. #1 Stock For The Next 7 Days. The dividend is made payable May 1 to shareholders of record on April 10. Spectrum Auction, New 5G Revenue Sources Key To Outlook, 5G Wireless Auction Bidding Nears $76 Billion As Verizon, Others Pony Up. IBD has a new program for students that teaches personal finance and investing. However, Verizon scores a 93 using our Dividend Safety Scores, indicating that … Verizon generated over $6.6 billion in operating cash flow during the March quarter. As a result, we are becoming much more conservative in our parameters. That’s great and all, but that puts the company’s annual earnings at only 1.4 times that payout. He is an author, speaker and financial guru to 500,000 readers who receive his publications each week. This involves buying into safe dividend stocks that are likely to continue paying out dividends for the foreseeable future. In … 10-Year Dividend History. Verizon’s Dividend Safety Score of 89 suggests that the company’s dividend is very safe. The dividend also looks safe when you look at cash flow. Verizon Communications Inc. (VZ), International Business Machines Corporation (IBM), 3M Company (MMM), Toronto Dominion Bank (TD), and Compass Minerals International, Inc. (CMP) are five safe-dividend stocks that investors can take advantage of. 1 on Amazon’s best-seller list. The extra cash flow will primarily be used to reduce the company’s leverage, further strengthening its dividend safety. That is what you will find with AZN, ENB, PM, VZ and the rest. Published Mon, 10 Sep 2012 13:59:45 -0400 on Seeking Alpha . Under normal circumstances, Verizon’s dividend would be considered rock solid. But we are not under normal circumstances, and the company’s payout ratio is just a little too high in our new conservative model. Six weeks ago, those figures would have been well within my comfort zone. Verizon Stock Deserves Income Investors’ Attention. But when you consider how solid the business is and how much other companies are paying, you’d see that VZ stock could be a serious dividend growth opportunity. 5G Stocks To Buy And Watch: Will Augmented Reality Apps Kick In In 2021? Verizon has had to incur a fair amount of debt to finance these initiatives, but the huge free cash flow generated by its various businesses means its 4.3% dividend is extremely safe. Check it out! Overall, Verizon seems likely to remain a key player serving the communications needs of millions of consumer and businesses for many years to come. Your free report will be delivered to your inbox. A higher yield is generally better for buyers. It appears that Verizon’s dividend is safe when using either earnings-per-share or the longer term view of free cash flow. Verizon is one of my long term holdings dating back to the initial purchase in 2003. Until then, due to the crisis, the dividend has to be considered only moderately safe. We do not anticipate the company cutting its dividend as it is well-covered by both metrics. Their anxiety developed after reading several articles online that suggested Verizon’s dividend was no longer sustainable because the company’s free cash flow did not cover it last year. Verizon’s dividend is first supported by the company’s healthy payout ratios. Currently, Marc is the Chief Income Strategist at Wealthy Retirement and The Oxford Club. Prior to this date, the stock was trading as Bell Atlantic. Verizon’s dividend is more likely to take a hit, however, as it has the bigger exposure to consumer wireless. 7 Safe High-Yield Dividend Stocks Delivering 4% or More These seven high-yield dividend stocks have sturdy foundations, according to the DIVCON dividend-health … Roku Stock Gets Maximum Benefit From HBO Max Carriage Deal, Roku Reaches Deal To Carry HBO Max Before 'Wonder Woman 1984' Premiere. Summary: - Verizon pre-announced strong subscriber numbers for the period ended December 31, 2018, and the stock popped ~3%. Over the last four quarters, Verizon’s dividend payments have consumed approximately 50% of the free cash flow and earnings the company has generated. Privacy Policy & Terms of Use, "Verizon's relative strength isn't unreasonable," MoffettNathanson analyst Craig Moffett said in a blog on Thursday. Payout ratio calculation and chart. A Household Name Gets a COVID-19 Downgrade, 50 Retirement Quotes: Inspirational and Funny Retirement Sayings, Marc Lichtenfeld Talks About Gary Cohn’s Resignation, Marc Lichtenfeld Discusses America’s Retirement Crisis. Is This Double-Digit Distribution Running on Empty? You’ll soon read about proven strategies that will enable you to generate income and build the future you want. Its debt-to-equity ratio is 1.6, and its debt-to-EBITDA (earnings before interest, taxes, depreciation and amortization) ratio is more than 2. For example, in the past, a company that paid more than 75% of its cash flow in dividends was penalized in its rating. The company is one of Warren E. Buffett's 20 highest-yielding divided stocks. Furthermore, the Verizon dividend appears safe from a potential reduction. To learn more about SafetyNet Pro and The Oxford Income Letter, click here now. Date: March 22, 2018 It has $100 billion in long-term debt. 1/05/2021 They are also strategically merging and buying up other companies around them, enabling them to keep pace and even outperform some of the smaller companies around them. Until then, due to the crisis, the dividend has to be considered only moderately safe. A few of his appearances are below…. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. But the world was very different six weeks ago. It’s easy to see how VZ will allow you to dial up attractive returns even when the overall market is rocky. We have lowered that threshold to 50%. In fact, the stimulus package states that any company that receives bailout money must suspend stock buybacks and dividend payments until its loans are paid back to the government. My Path Forward With Verizon Stock. To learn more about Marc’s books, check out our Best Finance Books. Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing. Dividend at Risk. But we are not under normal circumstances, and the company’s payout ratio is just a little too high in our new conservative model. This year, it is forecast to pay 52%. I made VZ a Long Idea in September 2019 and the stock remains undervalued. At current prices, it yields an attractive 4.22%. Ownership data provided by Refinitiv and Estimates data provided by FactSet. He joins 'The Exchange' to discuss. AT&T bought satellite TV broadcaster DirecTV Group. I believe Verizon is one of the best high dividend stocks for current income, so I was interested to review what all of the fuss was about.. Realtime quote and/or trade prices are not sourced from all markets. Marc’s top-notch research makes him a sought-after media guest. Under normal circumstances, it would receive an “A” rating for dividend safety. (VZ) By. AT&T stock has a Relative Strength Rating of 88, although its shares fell more than Verizon on both Wednesday and Thursday, according to IBD Stock Checkup. Verizon Communications, Inc. (VZ), is the featured stock in May’s Safest Dividend Yields Model Portfolio. The positive: Free cash flow is forecast to grow more than 9% this year to $19.6 billion from $17.9 billion. Verizon's historical key to success has been delivering reliable wireless and wireline services over the best communications network in the country. The dividend also looks safe when you look at cash flow. A lot has changed in the world over the past few months, but you wouldn’t know it … They look at the dividend per share divided by the net income per share. "Yes, it enjoys similar favor for its even higher dividend yield (6.4%). More Proof Verizon's Dividend Is a Safe Bet The bears looked like they were winning at times last year, but the leader in U.S. wireless was never really at risk. Start your free trial today! The number one safest dividend stock to buy in 2020 is Verizon. Find out why economists and analysts are considering the longer term possibility of a "K" shaped recovery, Is Verizon Stock A Buy? Investing Champion David Ryan is coming to IBD Live this Wednesday. Verizon yields 4.2% at the current market price, and is one of the most followed stocks by dividend investors. Twitter. His readers include teachers... engineers... sound technicians... real estate investors... financial advisors... business developers... law enforcement officers... people from all walks of life. 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