VZ - Is Verizon Stock a Buy for Income Investors?
2024-06-01 12:17:00 ET
Verizon Communications (NYSE: VZ) stock currently offers investors a generous forward dividend yield of 6.6%, supported by the company's unwavering commitment to return cash to shareholders. In September 2023, Verizon boosted its dividend 2% to $0.665 per share, its 17th consecutive year of dividend hikes.
Sometimes a high yield is masking underlying financial difficulties. Since dividend yield and stock price are inversely related, a low price could reflect deteriorating financial conditions. Dividends also are not guaranteed to continue. Declining earnings and/or increased leverage could force a company to eliminate or reduce its dividend.
Given its high dividend yield, should investors be concerned about the safety of Verizon's dividend?
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Is Verizon Stock a Buy for Income Investors?