Friday, October 31, 2014

Verizon (VZ): Another High Yield Telecom for Current Income

Verizon Communications Inc. (VZ) provides communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. This dividend achiever has paid dividends since 1984 and increased them for 10 years in a row.

The most recent dividend increase was in September 2013, when the Board of Directors approved a 2.90% increase in the quarterly dividend to 53 cents/share.

The company’s competitors include AT&T (T), Sprint (S) and T-Mobile (TMUS).

Over the past decade this dividend growth stock has delivered an annualized total return of 9% to its shareholders. Future returns will be dependent on growth in earnings and dividend yields obtained by shareholders.

Please read the rest of the article on Seeking Alpha

Full Disclosure: Long VZ

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7 comments:

  1. Grouch rant

    Your blog is so much better than Seeking Alpha, why do you require your regular readers to click through to that site? If you want exposure there, why not just post the same full piece in both places?

    End Grouch rant

    ReplyDelete
    Replies
    1. I understand your concerns. Thank you for the honest input.

      I wrote those articles exclusively for SA, in order to see if I can earn something from my content. SA makes those articles exclusive on their site, meaning I can only post a portion to my site. The articles have already been posted on SA, but since I am busy and cannot do more stock analyses, I am simply going to link to those I have not reviewed for a few more weeks.

      In reality, after those analysis articles that are only postable on SA, I have not done anything else exclusive. And those articles represent less than 1% of all the articles written on the site here in total. Hence, I do not think this to be such a high inconvenience for readers. Plus, many of the readers that found this site came from Seeking alpha in the first place. Although much less these days.

      Delete
    2. Thanks for the feedback. I understand. From Grouchy Anon

      Delete
  2. DGI, Did you see the news about the accounting scandal at ARCP? Thought you might be interested. The REIT financial are always difficult for me to digest anyway.

    Hate to say it, but I agree with Grouch Rant. SA is a little cumbersome. Your blog is better stand alone.

    ReplyDelete
    Replies
    1. Hi,

      I am posting an article tomorrow on the topic. Please stay tuned.

      Delete
  3. DGI,

    As yet, I have my telecommunications investment in the Canadian company BCE - high yield with middle of the pack dividend growth. On my next go around (after picking through some other industries), I might branch out into a U.S. telecom such as T or VZ. I believe VZ has done very well to connect with consumers and improve their brand image over the years.

    Thanks for sharing,
    - Ryan from GRB

    ReplyDelete
    Replies
    1. Hi Ryan,

      I am not a very big fan of the US telecoms, although I own a token position in VZ and a tad higher one in UK's VOD. I do not like the slow growth in dividends, which are more likely to grow at rate of inflation. Of course, if I needed as much dividend income as possible today, I might reconsider this stance. But the problem I am facing is that I want to be abel to live off dividends for 40 years in the future. 3% dividend growth is not going to cut it for me..

      DGI

      Delete

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