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Verizon Hikes Its Dividend for the 16th Straight Year

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Verizon stock’s yield of around 6.2% far exceeds that of the broader market.

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Verizon Communications

already offered a very big yield. The company sweetened the deal for investors on Tuesday, declaring a dividend increase for the 16th straight year.

The telecommunications giant’s board declared a quarterly disbursement of 65.25 cents a share, up 2% from 64 cents.

In recent years the company has been raising its quarterly dividend in small increments. Last September, it went from 62.75 cents a share to 64 cents, also increase of about 2%.

Verizon stock (ticker: VZ), which was recently yielding 6.2%, was up 0.4%, at $41.46, in recent trading. The stock has lagged the broader market this year. As of Friday’s close, it had returned minus 17.6% this year, dividends included, compared with minus 16.8% for the

S&P 500.

On a generally accepted accounting principles, or GAAP, basis, the consensus earnings estimate for Verizon this fiscal year is $4.85 a share, down from $5.32 in 2021, according to FactSet. It’s expected to earn $5.21 a share in 2023.

“We believe Verizon will deliver consistent results over the long term, but growth will likely be modest,” according to a research note by Morningstar’s Michael Hodel.

Still, the stock’s yield of around 6.2% far exceeds that of the broader market. The S&P 500’s yield is about 1.7%.

The quarterly dividend is payable on Nov. 1 to shareholders of record at the close of business on Oct. 7. The company said it has paid about $5.4 billion in dividends in the first half of 2022.

Write to Lawrence C. Strauss at lawrence.strauss@barrons.com

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