Why I Keep Buying This 7.5%-Yielding Dividend Stock Hand Over Fist
I've been gobbling up shares of (NYSE: VZ) over the past year. The biggest draw is the telecom giant's monster 7.5%-yielding dividend. While there have been some questions about that payout's sustainability -- which have weighed on its share price and pushed up its dividend yield -- the company's improving cash flow and balance sheet suggest the dividend should keep rising.
I recently bought a few more shares of Verizon, my sixth purchase in the past year. Here's why I can't seem to get enough of the company's big-time payout.
Verizon produces a prodigious amount of cash. In 2022, the telecom giant generated $37.1 billion in cash flow from operations. While that was down from $39.5 billion in 2021, it covered its capital expenses ($23.1 billion) with ample room to spare ($14.1 billion in free cash flow).
Source Fool.com
Verizon Communications Inc. Stock
The stock is one of the favorites of our community with 23 Buy predictions and 1 Sell predictions.
With a target price of 41 € there is a slightly positive potential of 7.89% for Verizon Communications Inc. compared to the current price of 38.0 €.
