Verizon declares quarterly dividend on February 29

Rhea-AI Summary

Verizon Communications Inc. declares a quarterly dividend of 66.50 cents per share, unchanged for the third consecutive quarter, showcasing its strong cash generation. The company, with 4.2 billion outstanding shares, has raised dividends for 17 consecutive years, emphasizing its commitment to shareholder value. Verizon, a prominent technology and communications provider, reported $11.0 billion in cash dividend payments in 2023, with revenues of $134.0 billion. Chairman and CEO Hans Vestberg highlights the company's focus on shareholder value and network-as-a-service strategy.

Insights

Financial Analyst

The declaration of a steady quarterly dividend by Verizon Communications Inc. reflects the company's consistent cash flow generation and its commitment to shareholder returns. The maintenance of the dividend rate at 66.50 cents per share, despite being unchanged, indicates a stable financial position. However, it's important to note that the lack of an increase could suggest that Verizon is prioritizing other financial strategies over dividend growth, such as debt reduction, investment in network infrastructure, or potential strategic acquisitions.

Investors typically view consistent dividends as a sign of a company's financial health and a stable investment, but they also expect periodic increases as a signal of growth. Verizon's emphasis on its 'network-as-a-service' strategy may imply ongoing investments into their network capabilities, which could enhance long-term shareholder value but may also require significant capital expenditures in the short term.

Market Research Analyst

Verizon's position as a major player in the technology and communications industry, with substantial revenues of $134.0 billion in 2023, suggests robust operational performance. However, the telecommunications sector is highly competitive, with constant pressure to upgrade infrastructure to support the latest technology, such as 5G. Verizon's strategy and performance should be analyzed relative to industry peers, considering factors like market share growth, customer acquisition costs and average revenue per user (ARPU).

Furthermore, the company's ability to maintain a significant dividend payout ratio while investing in its network infrastructure would be indicative of strong underlying financial discipline and operational efficiency. It's crucial to monitor how such a strategy will sustain in the face of evolving market demands and technological advancements.

Economist

From an economic perspective, Verizon's dividend announcement must be contextualized within the broader economic environment. Factors such as interest rate movements, inflationary pressures and economic growth prospects can influence investor sentiment towards dividend-paying stocks. In a low interest rate environment, steady dividends can be particularly attractive as they offer a better yield than many fixed-income alternatives.

However, if interest rates are rising, as they have been in recent periods, the relative attractiveness of dividend stocks may diminish. Investors may also consider the opportunity cost of investing in a company with a flat dividend yield versus one with potential for capital gains. The macroeconomic climate, including consumer spending power and business investment, can impact the demand for Verizon's services and, consequently, its revenue and cash flow stability.

NEW YORK, Feb. 29, 2024 (GLOBE NEWSWIRE) -- The Board of Directors of Verizon Communications Inc. (NYSE, Nasdaq: VZ) today declared a quarterly dividend of 66.50 cents per outstanding share, unchanged from the previous two quarters. The quarterly dividend is payable on May 1, 2024, to Verizon shareholders of record at the close of business on April 10, 2024.

“We are one of the strongest cash generating companies in the industry, and we are proud to have raised our dividend 17 years in a row,” said Chairman and CEO Hans Vestberg. “We continue to focus on maximizing value for our shareholders and executing our network-as-a-service strategy.”

Verizon has approximately 4.2 billion shares of common stock outstanding. The company made more than $11.0 billion in cash dividend payments in 2023.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed in 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $134.0 billion in 2023. The company offers data, video and voice services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, and security.

VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/news. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.

Media contact:
Eric Wilkens
eric.wilkens@verizon.com
201-572-9317

FAQ

What is the quarterly dividend declared by Verizon Communications Inc.?

Verizon Communications Inc. declared a quarterly dividend of 66.50 cents per outstanding share.

How many shares does Verizon have outstanding?

Verizon has approximately 4.2 billion shares of common stock outstanding.

How much did Verizon make in cash dividend payments in 2023?

Verizon made more than $11.0 billion in cash dividend payments in 2023.

Where is Verizon Communications Inc. headquartered?

Verizon Communications Inc. is headquartered in New York City.

What is Verizon's focus according to Chairman and CEO Hans Vestberg?

Chairman and CEO Hans Vestberg highlights Verizon's focus on maximizing value for shareholders and executing the network-as-a-service strategy.