Verizon Announces Another Dividend Hike



Text size

Verizon Communications (VZ) announced Thursday that it will increase its quarterly dividend by 2.1% to 60.25 cents a share.

Michael Nagle/Bloomberg

It marks the 12th consecutive year in which the large wireless operator has hiked its dividend.
The stock sports an attractive yield of 4.3%, and it’s returned 21.4% over the past year, slightly ahead of the S&P 500’s performance.
In recent years, Verizon has announced dividend increases of similar percentages.
A year ago, the company’s board declared a quarterly disbursement of 59 cents a share, up 2.2% from its previous amount.

Last year Verizon paid out nearly two-thirds of its earnings in dividends—$2.34 a share against earnings of $3.74.
Still, the company’s strong cash flow has supported the dividend, even with large capital expenditures. Second-quarter operating cash flow totaled $9.8 billion, up $1.9 billion year over year.
The quarterly dividend is payable on Nov. 1 to shareholders of record at the close of business on Oct. 10.
The stock closed Thursday at $54.29, up 0.87% on the session.
Sign up to Review & Preview, a new daily email from Barron’s. Every evening we’ll review the news that moved markets during the day and look ahead to what it means for your portfolio in the morning. 



Source link