Better High-Yield Dividend Stock: Verizon or AT&T?
Verizon Communications (NYSE: VZ) was a component of the Dow Jones Industrial Average for 22 years. This week, that run ended. S Dow Jones Indices swapped the carrier out and added Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) in its place, effective June 29, tilting the 30-stock benchmark toward artificial intelligence (AI) and away from a stock that made up about half a percent of its weight.
For income investors, though, index membership and dividend quality are separate questions. After all, Verizon still yields more than 6%, and its closest rival, AT (NYSE: T), pays about 5%.
With these telecom stocks selling off recently, it's a good time to take a look at them -- even if they seem to be falling out of favor. They both throw off enormous amounts of cash, and both trade at single-digit earnings multiples. So, which is the better high-yield dividend stock to buy now?
Source Fool.com
Verizon Communications Inc. Stock
With 11 Buy predictions and not the single Sell prediction the community is currently very high on Verizon Communications Inc..
As a result the target price of 43 € shows a slightly positive potential of 4.42% compared to the current price of 41.18 € for Verizon Communications Inc..
