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How Verizon Continues to Return Value to Its Investors

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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.

MACD

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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