Verizon’s dividend yield
Now let’s talk about Verizon’s (VZ) dividend yield compared to those of its peers.
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 ~5.03% on May 1, 2017, higher than AT&T’s (T) ~5.01%.
In 1Q17, Verizon declared a quarterly dividend of $0.58 per share, a rise of 2.2% over the same quarter in the previous year. Verizon paid total dividends of $2.4 billion in 1Q17. In 2016, Verizon paid total dividends of $9.3 billion and used almost all of its adjusted free cash flow to pay its dividends, up drastically from the normal 40%–60% range.