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A Look at Verizon’s Balance Sheet

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Verizon’s balance sheet position

In the first nine months of 2018, Verizon’s (VZ) cash flow from operations totaled $26.2 billion. The company is generating strong cash flows as it gets set to launch 5G. Total capital expenditures were $12 billion in the year-to-date period. Capital expenditure went toward supporting the rising demand on Verizon’s 4G network and the commercial launch of 5G Home. For 2018, the company expects capital expenditure in the range of $16.6 billion to $17.0 billion.

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Q3 2018 dividends

Verizon has been consistently paying and increasing dividends for the past 11 years. Verizon paid an annual dividend of $9.5 billion in 2017. The dividend payments were $9.3 billion, $8.5 billion, $7.8 billion, and $5.9 billion in 2016, 2015, 2014, and 2013, respectively.

In September, Verizon raised its quarterly dividend for the 12th consecutive year. Verizon’s board has approved a quarterly dividend of $0.6025 per share, an increase of 2.1% from the previous quarter. The dividend will be paid to shareholders of record as of October 10 on November 1. Last quarter, the company paid a quarterly dividend of $0.59 per share. The company’s cash dividends totaled $7.3 billion through the third quarter of 2018.

The new quarterly dividend is equivalent to an annualized dividend of $2.41 per share and a dividend yield of 4.26% as of October 23. In comparison to peers, AT&T (T) has a dividend yield of 6.43%.

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