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How Verizon’s Dividend Yield Stacks Up

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Verizon’s dividend yield

In this part of the series, we’ll evaluate Verizon’s (VZ) dividend yield compared to its competitor AT&T (T). A dividend yield is a financial ratio that measures a company’s annual dividend per share in relation to its price per share. It indicates how much cash an investor is receiving for every dollar it invests in the company’s equity. Verizon’s dividend yield was ~5.0% as of November 3, 2017. That was lower than the same metric for AT&T at ~6.0%.

In 3Q17, Verizon declared a quarterly dividend of $0.59 per share, a 2.2% rise YoY (year-over-year). Verizon has paid total dividends of $2.4 billion in 3Q17. In 2016, it paid total dividends of $9.3 billion and utilized almost all of its adjusted free cash flow to pay dividends.

Verizon’s scale

As of November 3, 2017, Verizon’s market capitalization was ~$193.4 billion, making it the second-largest US telecommunications company in terms of market capitalization. By comparison, T-Mobile (TMUS) had a market capitalization of ~$49 billion. AT&T’s market capitalization was ~$204.4 billion, and Sprint’s (S) was ~$26.7 billion.

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