Better Dividend Stock: Verizon vs. AT&T
For some investors, dividends are incredibly important. The cash flow from dividends can be a source of retirement income or funneled back into other investments. As a result, many investors fall into the trap of only looking at dividend yield (what percentage of the stock price is paid out in dividends each year). When this happens, investors might purchase shares of companies at risk of cutting their dividends without knowing their full backstory.
However, two high-yielding stocks that don't seem like as much of a risk to cut their dividends are Verizon (NYSE: VZ) and AT (NYSE: T). Additionally, they both have sky-high yields, with the two stocks yielding 7.8% and 7.3%, respectively. So, between the two, which is a better buy?
Many investors have reservations about stocks with greater than a 4% or 5% dividend yield, as it could be a sign the company may be close to cutting its dividend because it cannot afford it. However, this risk can easily be assessed by examining the dividend payout ratio or how much earnings the company pays out to investors.
Source Fool.com
Verizon Communications Inc. Aktie
Die Community unterstützt Verizon Communications Inc. stark, mit vielen Buy- und wenigen Sell-Einschätzungen.
Das Kursziel von 41 € für Verizon Communications Inc. weist auf ein leicht positives Potenzial gegenüber dem aktuellen Kurs von 38.4 € hin.
