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