Is Verizon's Dividend Still Safe?
Verizon Communications (NYSE: VZ) is a stock that has been struggling amid rising interest rates. Over the past three years, it has declined by 30% in value. As a result of that sell-off, the stock's dividend yield is up to 6.6%, which is far higher than normal for the business. Typically, the stock yields around 4%.
Are the stock's struggles a sign that the company is in trouble, and that its yield is unsustainable? Or have the markets overreacted to the current economic conditions, and could Verizon simply be one of the best bargains out there for income investors?
Verizon released its latest quarterly numbers on April 22. For the first three months of 2024, the telecom company's operating revenue was flat at $33 billion. Its consolidated net income of $4.7 billion was also lower than the $5 billion it reported a year earlier. The one encouraging number, however, was the free cash flow. At $2.7 billion for the quarter, it was higher than the $2.3 billion in free cash that Verizon generated in the prior-year period.
Source Fool.com
Verizon Communications Inc. Stock
Verizon Communications Inc. is currently one of the favorites of our community with 11 Buy predictions and no Sell predictions.
With a target price of 43 € there is a slightly positive potential of 7.93% for Verizon Communications Inc. compared to the current price of 39.84 €.
