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Verizon maintains dividend at 67.75 cents per share

Published 2024-12-05, 11:58 a/m
VZ
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NEW YORK - Verizon Communications Inc. (NYSE, Nasdaq: NYSE:VZ), a leading global provider of telecommunications, information and entertainment products and services, announced that its Board of Directors has declared a quarterly dividend of 67.75 cents per outstanding share, maintaining the amount distributed in the previous quarter. This dividend is scheduled to be paid on February 3, 2025, to shareholders who are on record as of January 10, 2025. According to InvestingPro data, Verizon offers an attractive 6.37% dividend yield and has maintained dividend payments for 41 consecutive years, demonstrating its commitment to shareholder returns.

Chairman and CEO Hans Vestberg stated, "Our focus on creating excellent connected life experiences for our customers every day empowers us to pay a consistent dividend, which we have increased for 18 consecutive years." He emphasized the company's commitment to enhancing long-term shareholder value, supported by Verizon's strong consumer wireless base and cash flow. The company's stable business model is reflected in its low price volatility, with a beta of 0.43.

With approximately 4.2 billion shares of common stock outstanding, the company has disbursed $8.4 billion in cash dividend payments over the last three quarters. Verizon, headquartered in New York City, serves a wide range of customers, including nearly all Fortune 500 companies. In 2023, the company reported revenues of $134.0 billion, underscoring its financial stability and commitment to innovation. With a market capitalization of $180 billion and an overall "GOOD" financial health rating from InvestingPro, which offers comprehensive analysis and 8 additional ProTips for this telecommunications giant, Verizon continues to demonstrate its market leadership.

The information in this article is based on a press release statement from Verizon Communications Inc.

In other recent news, Verizon Communications reported a record EBITDA of $12.5 billion in their third-quarter earnings, along with a 2.7% increase in wireless service revenue and the addition of 239,000 net postpaid subscribers. KeyBanc Capital Markets, however, downgraded Verizon stock, voicing concerns about predicted slowdowns in EBITDA growth and free cash flow, as well as potential capital allocation issues. Scotiabank (TSX:BNS) also adjusted its outlook on Verizon, slightly reducing the stock's price target due to flat revenue and higher capital expenditure guidance.

Verizon's recent developments include a strategic focus on expanding its broadband reach, targeting over 100 million households with a mix of fixed wireless access and fiber solutions. The company also plans to double its fixed wireless access subscribers by 2028. Despite these growth plans, both KeyBanc and Scotiabank expressed caution about the company's financial performance, with Scotiabank suggesting a lack of growth in free cash flow next year due to increased capital expenditures.

These recent developments reflect the analyst firms' assessments of Verizon's current financial health and future prospects. However, both firms indicated they would reconsider their stances if Verizon's performance exceeded expectations or if there were significant changes in valuation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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