Verizon Communications (VZ) has raised its quarterly common stock cash dividend by 2% to $0.64 per share. The dividend will be paid on November 1, 2021, to shareholders of record on October 8, 2021.
Based in New York City, Verizon provides technology, communications, information and entertainment products and services. The company generated revenues of $128.3 billion in 2020. (See Verizon stock charts on TipRanks)
The latest hike marks the 15th consecutive year quarterly dividend increase approved by Verizon’s Board. The annual yield on the dividend is 4.7%.
The Chairman and CEO of Verizon, Hans Vestberg, said, “We continue to deliver value to our shareholders as we execute our multi-purpose network strategy and grow the top and bottom lines.”
Following the earnings release last month, Morgan Stanley analyst Simon Flannery reiterated a Hold rating on Verizon with a price target of $60 (upside potential of 8.5%).
The analyst said, “While some of the improvement reflected below the line items such as lower D&A related to the VMG sale and higher interest capitalization post C-Band, we were pleased to see the company return to positive postpaid phone adds this quarter… By pulling back on promotional activity, it appears that the company is also seeing solid momentum into 3Q21 as well.”
Based on 5 Buys, 4 Holds and 1 Sell, consensus among analysts is a Moderate Buy. The average Verizon price target stands at $61.78, which implies upside potential of 11.7% from current levels.
According to TipRanks’ Smart Score system, Verizon gets a 6 out of 10, which indicates that the stock is likely to perform in line with market averages.
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