is verizon dividend safe

Find The Best Stocks To Buy: See Why These 3 Lists Doubled The S&P In 2020. IBD has a new program for students that teaches personal finance and investing. Additionally, Verizon has a decent amount of debt. Although, Verizon might still be a good income investment. I first made Verizon a Long Idea in September … SHARE. #1 Stock For The Next 7 Days. In fact, free cash flow has been steadily rising for a number of years. Over the last 10 years, the dividend has climbed to $2.39. I made VZ a Long Idea in September 2019 and the stock remains undervalued. IBD Live: A New Tool For Daily Stock Market Analysis, Find Compelling Growth Stocks With IBD's Stock Of The Day, View Breakout Stocks & Technical Analysis, Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists. Chris Lange. Companies like Brinker International (NYSE: EAT), Bed Bath & Beyond (Nasdaq: BBBY) and Herman Miller (Nasdaq: MLHR) have all announced either postponements or suspensions of their dividends. We do not anticipate the company cutting its dividend as it is well-covered by both metrics. The dividend also looks safe when you look at cash flow. Description: Marc makes a guest appearance on Bloomberg Radio to discuss America’s retirement crisis. Twitter. To learn more about SafetyNet Pro and The Oxford Income Letter, click here now. Verizon distributes one of the largest dividends of all U.S. companies. Verizon’s dividend is first supported by the company’s healthy payout ratios. Here are 26 companies with safe dividends, and … My Path Forward With Verizon Stock. Verizon Communications Inc. (VZ) is one of the largest integrated telecom companies in the world. Verizon yields 4.2% at the current market price, and is one of the most followed stocks by dividend investors. Prior to this date, the stock was trading as Bell Atlantic. Business Analysis. AT&T stock has a Relative Strength Rating of 88, although its shares fell more than Verizon on both Wednesday and Thursday, according to IBD Stock Checkup. Marc Lichtenfeld has studied the markets for more than 22 years. Verizon stock began trading on July 3, 2000. Spectrum Auction, New 5G Revenue Sources Key To Outlook, 5G Wireless Auction Bidding Nears $76 Billion As Verizon, Others Pony Up. Verizon generated over $6.6 billion in operating cash flow during the March quarter. This involves buying into safe dividend stocks that are likely to continue paying out dividends for the foreseeable future. While they wait for the recovery, investors can enjoy the stock’s relatively safe 5.3% dividend. Under normal circumstances, it would receive an “A” rating for dividend safety. Key Risks. My Path Forward With Verizon Stock. Verizon just bumped its quarterly dividend up to 46 cents a share. As an example: If you bought AT&T on 6/23/2015, you paid $35.91 It closed on 10/26/18 at $29.09 For that time period, you have a paper loss of $6.82 per share. #1 Stock For The Next 7 Days. Published Mon, 10 Sep 2012 13:59:45 -0400 on Seeking Alpha . But both Verizon stock and AT&T stock fell on Thursday. The telecom stocks stabilized in late 2008 amid low interest rates. He is an author, speaker and financial guru to 500,000 readers who receive his publications each week. He has appeared on CNBC, Fox Business and Yahoo Finance. This year, it is forecast to pay 52%. I believe Verizon is one of the best high dividend stocks for current income, so I was interested to review what all of the fuss was about.. Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing. 7 Safe High-Yield Dividend Stocks Delivering 4% or More These seven high-yield dividend stocks have sturdy foundations, according to the DIVCON dividend-health … Does This Defensive Dividend Have Staying Power. Your email is safe with us. Category: Television This isn't a completely safe dividend -- the company does have some challenges to navigate -- but it's a very strong bet. "AT&T and Verizon are currently yielding 500 basis points over 10-year treasuries, versus a 5-year average closer to 300 basis points," Morgan Stanley analyst Simon Flannery said in a note to clients Wednesday. At first glance, Verizon Communications Inc.’s (NYSE:VZ) 4.3% annual dividend yield may not seem like much. Date: March 22, 2018 7 Safe High-Yield Dividend Stocks Delivering 4% or More These seven high-yield dividend stocks have sturdy foundations, according to the DIVCON dividend-health … To sort the good from the bad, I consulted a half-dozen dividend experts to point us to the safe dividend plays. However, Verizon scores a 93 using our Dividend Safety Scores, indicating that its payout remains very secure.. Holding Its Dividend Will Keep AT&T's Stock Safe. That way, you can have confidence that any company rated “A” or “B” is unlikely to cut its dividend, even in these trying times. ", He added: "The bulk of their business is wireless, and while wireless won't be entirely unaffected — there's nothing here that should be overly dramatic. Your free report will be delivered to your inbox. Privacy Policy & Terms of Use, "Verizon's relative strength isn't unreasonable," MoffettNathanson analyst Craig Moffett said in a blog on Thursday. For example, in the past, a company that paid more than 75% of its cash flow in dividends was penalized in its rating. Verizon is one of my long term holdings dating back to the initial purchase in 2003. AT&T stock tumbled 5.2% to 31.15. Is T-Mobile Stock A Buy? If free cash flow comes in just a little above expectations, the dividend safety rating will get an upgrade. Their dividend yield (4.6%) isn't as gaudy as AT&T's, but it is much safer, and any safe dividend is flattered by the general decline in yields." Verizon’s dividend coverage ratio—its net income divided by its dividend payout—stands at a healthy 1.91. Track the latest news and stocks to watch in the... Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months weeks of IBD Digital for only $20! AT&T is the safer bet of the two for stable profits throughout the 20s. Click Here to See a Full List of Marc's Appearances, Marc Lichtenfeld’s first book, Get Rich With Dividends: A Proven System for Double-Digit Returns, achieved best-seller status after its release in 2012. After getting his start on the trading desk at Carlin Equities, he moved over to Avalon Research Group as a senior analyst. Verizon yields 4.2% at the current market price, and is one of the most followed stocks by dividend investors. AT&T is the safer bet of the two for stable profits throughout the 20s. 1 on Amazon’s best-seller list. - Verizon should be viewed as an income play (with some growth prospects as a kicker - e.g. By submitting your email address, you will receive a free subscription to Wealthy Retirement, and offers from us and our affiliates that we think might interest you. A lot has changed in the world over the past few months, but you wouldn’t know it … And management appears to … In a research note following Tuesday’s earnings release, analysts at RBC Capital Markets agreed with Ford management’s assessment that the dividend is safe in 2020. document.getElementById("date").innerHTML = d.getFullYear(); Verizon’s dividend is more likely to take a hit, however, as it has the bigger exposure to consumer wireless. Verizon Communications Inc.(NYSE:VZ): Now is the time for safer stocks given the rise of the Coronavirus. Given the volatility in financial markets caused by Covid, it is becoming difficult to assess whether previous dividend forecasts are still useful. Furthermore, the Verizon dividend appears safe from a potential reduction. XNew York… Read More With a recession-resistant business model, and a projected payout ratio below 60% for 2020, Verizon’s dividend appears safe. Find the latest dividend history for Verizon Communications Inc. Common Stock (VZ) at Nasdaq.com. Dividend.com: The #1 Source For Dividend Investing. Is This Double-Digit Distribution Running on Empty? A Household Name Gets a COVID-19 Downgrade, 50 Retirement Quotes: Inspirational and Funny Retirement Sayings, Marc Lichtenfeld Talks About Gary Cohn’s Resignation, Marc Lichtenfeld Discusses America’s Retirement Crisis. And (perhaps just as important) Verizon is close to virus-proof. Marc’s top-notch research makes him a sought-after media guest. "Yes, it enjoys similar favor for its even higher dividend yield (6.4%). BREAKING: Dow Futures Rise, Tech Futures Tumble Amid Georgia Election Count. Companies like Verizon Communications, Inc. (VZ), AbbVie, Inc. (ABBV), KB Financial Group, Inc. (KB) pay solid dividends and their stocks are well-positioned to soar in the near-to-mid-term. You’ll soon read about proven strategies that will enable you to generate income and build the future you want. (VZ is the newest stock added to the Reitmeister Total Return portfolio). AT&T bought satellite TV broadcaster DirecTV Group. While some investors are looking for safe havens amid the coronavirus outbreak, the telecom stocks have been viewed as defensive, dividend-paying stocks. Matrix Asset Advisors CIO David Katz says dividends are still safe in these companies, Abbvie, Verizon, CVS Health, Coca-Cola, Kellogg, and Cisco. Verizon Communications (VZ) has weathered the coronavirus bear market better than peer AT&T (T) while both dividend-paying telecom stocks are holding up better than the general market. In fact, the stimulus package states that any company that receives bailout money must suspend stock buybacks and dividend payments until its loans are paid back to the government. You will want to do your research to ensure that you have chosen wisely. Currently, Marc is the Chief Income Strategist at Wealthy Retirement and The Oxford Club. But when you consider how solid the business is and how much other companies are paying, you’d see that VZ stock could be a serious dividend growth opportunity. Record 5G Spectrum Auction Pauses As Investors Mull Verizon, AT&T, Comcast Bidding. Under normal circumstances, Verizon’s dividend would be considered rock solid. Facebook. Verizon (NYSE: VZ) is one of those companies affected by the tighter model. But unlike Verizon, AT&T has spent the last five years levering its balance sheet precisely in order to become more cyclical.". Find out why economists and analysts are considering the longer term possibility of a "K" shaped recovery, Is Verizon Stock A Buy? At its current yield in the 7% range, AT&T is a better income stock than Verizon (NYSE: VZ), whose yield is in the 4% range. How Safe Is Verizon's Juicy Dividend? Until then, due to the crisis, the dividend has to be considered only moderately safe. 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