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Verizon Communications Inc. Dividends Banner

Verizon Communications Inc. Dividends

VZ Stock Analysis

Page title

Section title

Dividend Yield
6.38%
Payout Ratio
58.49%
Dividend Amount Per Share
$2.67
Last Ex-Dividend Date
Oct 10, 2024

VZ Dividend Safety

VZ paid out 58.49% of its $12B earnings as dividends over the last 12 months.

Safe

  1. Very Unsafe

  2. Unsafe

  3. Somewhat Safe

  4. Safe

  5. Very Safe

Dividend Payout Ratio

VZ's Dividend Payout Ratio of 58.49% is approaching unsustainable levels for the Communication Services sector, raising concerns about reinvestment and future growth.

Interest Rate Coverage

VZ's Interest Coverage Ratio of 3.311 indicates strong financial health with easy coverage of interest expenses.

Income Quality

VZ shows excellent income quality with a ratio of 3.098. This indicates high-quality earnings and low risk of dividend cuts.

VZ Dividend Growth

Verizon Communications Inc.(VZ) offers a dividend yield of 6.38% and pays $2.67 in dividends per share. Explore the historical dividend growth of VZ.

Dividend Stability

VZ has maintained stable dividend payments over the past 10 years with no cuts over 5%.

Dividend Growth

VZ's dividend payments have shown very poor growth, growing by 1.97% over the last 5 years.

Earnings Growth

VZ's earnings have shown very poor growth, shrinking by -9.626% over the last 5 years. Poor earnings growth or decline indicates potential struggles to maintain dividend levels, which may lead to cuts and affect overall returns.

VZ Dividend Yield Attractiveness

Verizon Communications Inc.(VZ) provides a dividend yield of 6.38%. Compare this with the averages of its peers, industry, and sector to see how it stacks up.

Yield %

Peers

Sector

Industry

VZ

4.34%

4.97%

5.24%

6.38%

Dividend Yield

VZ's dividend yield of 6.38% is considered good compared to the sector average of 4.968%, providing a strong safety margin for investors.

VZ Cash Flow

Over the past 12 months, VZ generated $134B in revenue, produced $18B in free cash flow, and distributed $11B in dividends.

100%75%50%25%0%

Free Cash Flow Growth

VZ's free cash flow has grown by 2.043% annually over the last 5 years, suggesting a moderate ability to generate cash and support dividend payments.

VZ Free Cash Flow and Dividends Paid

This chart shows the Free Cash Flow (FCF) and the portion of FCF used to pay dividends each year by Verizon Communications Inc.. The filled portion of the bar represents the dividends paid, while the remaining portion represents the remaining FCF.