Is Verizon Communications a Good Dividend Stock to Buy Now? -Breaking
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© Reuters. Verizon Communications: Is it a good dividend stock to buy now?Verizon (VZ), the U.S.’s largest wireless carrier, has seen its shares drop in price in recent years. The company’s history of dividend growth makes it a favorite holding for investors looking to secure stable returns and protect against volatility in the market. But the company’s trailing-12-months levered free cash flow was negative in its latest quarterly report. VZ is a great dividend stock that you can buy right now. Let’s discuss.With a market capitalization of $213.20 billion, New York City-based Verizon Communications Inc. (NYSE: ) is a company that provides information and communications technology products and services worldwide to individuals, businesses, government entities, and corporations. VZ shares fell 17% over the last year, and 13.1% since its beginning of trading at $50.79. The stock currently trades at a low of 50 and 200 days respectively and is close to the 52-week high it hit on December 1.
VZ’s $2.56 annual dividend yields 5.01% at the current share price. The company paid a 64 cent quarterly dividend on December 2. This was the same amount as in the prior quarter and will be payable February 1, 2022. VZ’s dividend payouts have increased at a 2.1% CAGR over the past three years. It has had eight consecutive years with record dividend growth. “Our disciplined strategy and execution continue to create short- and long-term value for our shareholders,” said Hans Vestberg, VZ’s Chairman and CEO.
VZ recently announced the acquisition of TracFone Wireless, Inc. and TracFone’s family of brands, aiming to strengthen its wireless network. The acquisition resulted in a $3.13 Billion cash payment and 57.596,544 shares Verizon stock. An additional $650million cash consideration is required for the deal. Considering the company’s negative $24.47 billion trailing-12-months levered free cash flow, the acquisition, along with the company’s venture into C-Band spectrum for 5G wireless, could hamper its cash position. VZ’s latest financial report also revealed a decline in cash flow from operations.
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