Why Verizon's Dividend Increase Might Actually Be Reason to Sell the Stock
Part of the reason to own stocks in general is protection from inflation. After all, while a bond's coupon is fixed, a stock's earnings should, hopefully, grow. Ideally, it would be a high-quality company with pricing power, that can either retain pricing and grow, or raise prices without sacrificing customers. That should lead to rising dividends and share repurchases over time.
(NYSE: VZ) shareholders may have been happy they got an expected annual bump in the company's dividend this month. However, the magnitude of the raise left much to be desired; in fact, it may actually be reason to sell the stock.
Verizon just announced it would be raising its dividend for the 17th straight year. And while that is a notable milestone, the 1.9% increase wasn't much to write home about, especially following the 1.9% increase from last year.
Source Fool.com
Verizon Communications Inc. Stock
Verizon Communications Inc. is currently one of the favorites of our community with 19 Buy predictions and no Sell predictions.
With a target price of 46 € there is a positive potential of 21.18% for Verizon Communications Inc. compared to the current price of 37.96 €.
