How Verizon Continues to Return Value to Its Investors



Shareholder returns

Increasing capital returns to investors is one of Verizon (VZ) management’s main priorities. In the fourth quarter, the telecom company returned $2.5 billion to investors in the form of dividends. In the fourth quarter, the company declared a quarterly dividend of $0.6025 per share, up ~2.1% YoY.

Long-term investors tend to prefer stocks that have better dividend yields and dividend growth. Verizon’s dividend yield was ~4.4% as of February 12. It was lower than the same metric for AT&T (T) at ~6.8%. Sprint (S) and T-Mobile (TMUS) don’t pay equity dividends.

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Verizon’s closing price on February 12, was $54.42 per share. Based on that closing price, Verizon has a market capitalization of $224.9 billion, the largest among all the major US mobile carriers. Verizon’s highest price in the last 52 weeks has been $61.58 per share. Its lowest price in the last 52 weeks has been $46.09 per share.


As of February 12, Verizon’s 14-day MACD (moving average convergence divergence) is -0.39. T-Mobile’s 14-day MACD is 0.38, AT&T’s is -0.27, and Sprint’s is -0.06. A stock’s MACD marks the change between its short-term and long-term moving averages. A positive MACD number suggests that a stock is in an upward trading trend, while a negative MACD number denotes a downward trading trend.


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