uploads/2017/04/Telecom-1Q17-Dividend-Yield-1.png

How Verizon’s Dividend Yield Stacks Up against Its Peers’

By

Updated

Verizon’s dividend yield

Now let’s talk about Verizon’s (VZ) dividend yield compared to those of its peers such as AT&T (T)

A dividend yield is a measure of a company’s annual dividend per share relative to its price per share. It indicates how much cash an investor is getting for every dollar invested in a company’s equity. Verizon’s dividend yield was ~4.75% on April 10, 2017, lower than the same metric for AT&T at ~4.83%.

In 4Q16, Verizon declared a quarterly dividend of $0.58 per share, a rise of 2.2% over 4Q15. Verizon paid total dividends of $9.3 billion in 2016. The company used almost all of its adjusted free cash flow to pay dividends in 2016, a drastic rise from its normal 40%–60% range.

Article continues below advertisement

Verizon’s scale

On April 10, 2017, AT&T was the largest US telecommunications player, Verizon was the second-largest, and T-Mobile (TMUS) was the third-largest by market capitalization. Sprint’s (S) market capitalization remained lower than T-Mobile’s.

Advertisement

More From Market Realist