VERIZON DIVIDEND YIELD: History, Payout Ratio & What You Need

Verizon dividend yield payout ratio history
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Although Verizon (NYSE: VZ) failed to impress investors in 2021, the stock plummeted 11.5 percent. While the drop began in June, it was not triggered by any lousy news. However, despite falling short of Wall Street’s projections, the company’s sales and operating profits are improving and even rising faster by more than 5%. For your understanding of Verizon dividend yield, this article has been designed. Hence, we will talk more about Verizon’s dividend yield history, its yield per share as well as its 2022 dividend yield without leaving out its payout ratio.

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About Verizon

Verizon Communications Inc., often known as Verizon, is an American global telecommunications company and a corporate component of the Dow Jones Industrial Average. The corporation is based at 1095 Avenue of the Americas in Midtown Manhattan, New York City, but is incorporated in Delaware.

Formerly known as Bell Atlantic Corporation, Verizon Communications Inc provides products and services in communications, information, and entertainment through its subsidiaries. Its Consumer sector, on the other hand, offers postpaid and prepaid service plans and internet access on laptops and tablets. Also, it provides wireless devices including smartphones as well as other handsets, and also wireless-enabled internet gadgets like tablets and smartwatches.

In addition, Verizon communication Inc also offers network access to mobile virtual network operators as well as provides internet, video, and voice services to residential customers. Meanwhile, as of December 31, 2021, it achieves and already has in place around 115 million cellular retail connections, 7 million wireline internet, and 4 million video connections.

Also, a segment of Verizon’s business section provides internet protocol-based audio and video services. And as well provides unified communications and collaboration tools, and customer contact center solutions. In addition, this division provides management and data security services as well as voice and data solutions for both local and worldwide markets

Basically, products and services include customer premises equipment, installation, maintenance, and site services. Additionally, it had roughly 27 million wireless retail postpaid connections and 477 thousand wireline internet connections as of December 31, 2021.

Verizon Dividend Yield History

In 1984, the US Department of Justice ordered AT&T to split the Bell System into seven firms, dubbed “Baby Bells” by the public. As a result,  Bell Atlantic, another Baby Bell, was founded in the same year. It however became the parent company of New Jersey Bell, Bell of Pennsylvania, Diamond State Telephone, as well as C&P Telephone, trading from New Jersey to Virginia.

Furthermore, in the mid-1990s, all of Bell Atlantic’s operating firms adopted the holding company’s name. Bell Atlantic, therefore, merged with Baby Bell NYNEX in 1997 to expand into New York and New England. In the end,  Bell Atlantic, the surviving corporation, relocated from Philadelphia to NYNEX’s historic headquarters in Manhattan. 

Bell Atlantic purchased GTE in 2000, which operated telecommunications firms in most of the country not already served by Bell Atlantic. In another word, the surviving company, Bell Atlantic, renamed itself Verizon, a play on the words “truth” and “horizon.

Of the original three Baby Bells, Verizon is the only surviving one as of 2016. In contrast to Verizon, the other two are the consequence of mergers among other former Baby Bell members. When SBC Communications purchased AT&T Corporation, the previous parent company of the Bell System, it rebranded as AT&T. While CenturyLink acquired Qwest (originally US West) in 2011, rebranding as Lumen Technologies in 2020.

Verizon’s mobile network has 120.9 million users at the end of Q4 2020, making it the largest telecom carrier in the United States.

However, since 2017, Verizon is the only publicly listed telecommunications corporation with two stock listings in its native nation, NYSE (main) and NASDAQ (secondary) (secondary). Likewise, AT&T is the second-largest telecommunications corporation in terms of revenue in 2017.

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What Is Verizon Dividend Yield?

Verizon is one of the three main mobile phone networks in the United States. However, all three have struggled in recent months; VZ stock, for instance, is only a few percentage points above its 52-week lows. Verizon is the greatest option; dividend yield, for investors seeking both growth and income. While AT&T Inc. is reducing its dividend as part of a complex corporate restructuring. T-Mobile US Inc. (TMUS), on the other hand, does not pay a dividend. As a result, Verizon is the most secure option.

Basically, shares are paying a 5% dividend yield and have dropped back to where they were the previous year, at the peak of the COVID-19 sell-off. However, at some point, Verizon will begin to reap the benefits of the 5G deployment cycle, and sentiment will begin to rise once more. Meanwhile, shares are trading at less than 10 times earnings.

Basically, Verizon’s (VZ) dividend payout and yield history since 1986. However, The current dividend payout for stock Verizon Communications Inc. (VZ) as of April 12, 2022, is 2.56 USD. The forward dividend yield for VZ as of April 12, 2022, is 4.75%. While the average dividend growth rate for stock Verizon Communications Inc. (VZ) for the past three years is 2.08%. Verizon Communications Inc. is one of the world’s major communication technology firms.

What is a Dividend Yield?

It is the dividend per share, divided by the stock’s price per share. A dividend yield (DY) is a financial statistic that compares a company’s annual dividends to its stock price. Generally, this ratio tells you how much dividends you can anticipate getting each year for every dollar you invest in a company.

In other words, an investment’s total return less than the dividends is what is known as the dividend yield. According to financial ratios (dividend/price), the dividend yield tells investors how much a firm pays in dividends each year with its stock price.

Basically, an annual dividend yield displays how much money a corporation paid out in dividends during that period. However, it’s not a specific monetary number, but rather, a percentage expressing the return. This nevertheless makes it easier for shareholders to see how much return they may expect on their investment.

If the dividend is neither raised nor cut, the yield will increase when the stock price decreases. If the stock price rises, it will climb as well. A high dividend yield can appear particularly high for stocks that are rapidly depreciating.

Verizon Dividend Yield Payout Ratio

The dividend payout ratio is the ratio of the total amount of dividends paid out to shareholders to the company’s net income. In other words, it is the percentage of earnings distributed to shareholders in the form of dividends. Meanwhile, the sum not given to shareholders is kept by the company and used to pay down debt or reinvest in core activities. It is however sometimes referred to simply as the payout ratio.

Payout Ratio: 47.41%

The Verizon dividend yield payout ratio can be calculated as the yearly dividend per share divided by the earnings per share (EPS), or equivalently, the dividends divided by net income (as shown below).

​Dividend Payout Ratio = Net Income/Dividends Paid

Meanwhile, you can also calculate the dividend payout ratio as:

​Dividend Payout Ratio=1−Retention Ratio

​On a per-share, the retention ratio can be depicted as:

Retention Ratio = EPS−DPS/ EPS

Where EPS stands for Earnings per share and DPS; Dividends per share

Verizon Dividend Yield 2022

The current dividend payout for stock Verizon Communications Inc. (VZ) as of April 13, 2022, is 2.56 USD. While the forward dividend yield for VZ as of April 13, 2022, is 4.77%. The average dividend growth rate for stock Verizon Communications Inc. (VZ) for the past three years is 2.08%.

Key Data Points (April 13, 2022)

PREVIOUS CLOSE (The last closing price)$53.90
DAY RANGE (The difference between the high and low prices over the past day)$53.42 – $54.05
YEAR RANGE (The difference between the high and low prices over the past 52 weeks)$49.69 – $59.85
MARKET CAP (A valuation method that multiplies the price of a company’s stock by the total number of outstanding shares.)226.38B USD
VOLUME (The average number of shares traded each day over the past 30 days)27.23M
P/E RATIO (The ratio of current share price to trailing twelve month EPS that signals if the price is high or low compared to other stocks)10.09
DIVIDEND YIELD (The ratio of the annual dividend to the current share price that estimates the dividend return of a stock)4.77%
PRIMARY EXCHANGEListed exchange for this securityNYSE

Verizon Dividend Yield FAQs

Does Verizon pay a good dividend?

Verizon is a great value stock trading at 10 times earnings and has a dividend yield of 4.7%.3 M

Is Verizon a good stock to own?

One of Verizon’s primary appeals is its dividend, which sports an alluring yield of 4.93% at the time of this writing. Verizon has demonstrated that it’s among the most reliable dividend stocks around

What is Verizon dividend yield history

Dividend yield history for stock VZ (Verizon Communications Inc.) includes historic stock price and dividend growth rate predictions based on history. It also involves the Verizon dividend yield payout ratio history and split, spin-off, and special dividends.

How much of a dividend does Verizon stock pay?

(NYSE, Nasdaq: VZ) declared a quarterly dividend of 64 cents per outstanding share, unchanged from the previous two quarters. The quarterly dividend is payable on May 2, 2022, to Verizon shareholders of record at the close of business on April 8, 2022.

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