Verizon Is Slashing 13,000 Jobs. Is This a Sign the Dividend May Be in Trouble?
A key reason investors may want to buy shares of Verizon Communications (NYSE: VZ) is for its dividend. Not only does the telecom giant offer a mouthwatering yield of 6.7%, but it has also increased its payout for 19 straight years. For income investors, there can be a lot of value in holding on to the stock for the long term.
But often when a yield is this high, investors question whether it's really safe. If a dividend ends up getting cut, then not only can the dividend income become drastically reduced, but the stock could nosedive in an instant. Thus, there's often some apprehension with high-yielding stocks. And recently, Verizon announced massive job cuts.
Could this be a sign that its dividend really isn't all that safe?
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 8.33% for Verizon Communications Inc. compared to the current price of 39.7 €.
