Key Points
Dividend-paying stocks combine potential capital appreciation with regular income, often increasing payouts over time. This makes Verizon Communications (NYSE: VZ) a compelling option for investors seeking stability alongside growth.
Verizon’s current yield of 6% stands out, supported by 20 consecutive years of dividend increases. Though its annual growth averages 2.4% over five years, the payout ratio of 67% suggests sustainable future hikes. The company’s resilience across economic cycles adds to its appeal.
Why Verizon Communications?
Verizon’s dividend growth is a cornerstone of its value. A low beta of 0.22% indicates reduced market volatility, making it a defensive play during downturns. With 150 million wireless subscribers and a focus on services rather than price hikes, Verizon balances growth with reliability.
- Legacy infrastructure serving 99% of Fortune 500 companies.
- Low market volatility aligns with risk-averse portfolios.
- Dividend yield provides protection against inflation.
- Strategic shift under CEO Dan Schulman emphasizes long-term value.
- Recent revenue and earnings growth confirms competitive positioning.
Verizon’s stock has appreciated at 5.9% annually over 15 years, with accelerated growth in recent years. Its dividends and moderate growth offer a balanced return profile for conservative investors.
Should You Invest in Verizon Now?
Before purchasing, note that Verizon wasn’t in the latest top 10 stock recommendations from The Motley Fool, which highlighted higher-growth alternatives. However, its consistent performance in both rising and falling markets makes it a reliable core holding.
The views expressed are those of the author and do not reflect those of Nasdaq.
