Verizon's Dividend Yield Reaches 6.9%, Attracting Income Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Dividend Appeal: Verizon's current dividend yield stands at 6.9%, ranking among the top ten in the S&P 500, which continues to attract income-focused investors despite competitive pressures.
- Market Performance Review: An investment of $10,000 in Verizon at the end of 2015 would yield only $4,650 in total returns today, indicating a lack of long-term value growth compared to the S&P 500's $40,220 return over the same period.
- Changing Competitive Landscape: With rivals like T-Mobile US capturing market share, Verizon's sales growth has slowed, and while cash flows remain strong, its market position is under threat, leaving future competitive prospects uncertain.
- Investor Caution: Although Verizon is still viewed as a solid dividend stock, analysts express reservations about its long-term growth potential, prompting investors to carefully assess its competitive viability when considering future investments.
VZ
$40.32+Infinity%1D
Analyst Views on VZ
Wall Street analysts forecast VZ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VZ is 46.79 USD with a low forecast of 43.00 USD and a high forecast of 51.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
5 Buy
11 Hold
0 Sell
Moderate Buy
Current: 39.920
Low
43.00
Averages
46.79
High
51.00
Current: 39.920
Low
43.00
Averages
46.79
High
51.00
About VZ
Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, technology, information and streaming products and services to consumers, businesses and government entities. Its Consumer segment provides wireless and wireline communications services. It also provides fixed wireless access (FWA) broadband through its 5G or 4G Long-Term Evolution (LTE) networks portfolio. The Company's Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and advanced communication services, corporate networking solutions, security and managed network services, local and long-distance voice services and network access to deliver various Internet of Things (IoT) services and products. It provides these products and services to businesses, public sector customers and wireless and wireline carriers across the U.S. and a subset of these products and services to customers around the world.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
