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How Verizon’s Dividend Yield Compares to Its Peers’

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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.

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Verizon’s scale

On May 1, 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.

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