Why Verizon's Dividend Is NOT Safe Despite Rising Free Cash Flow
Verizon Communications's (NYSE: VZ) third-quarter 2023 earnings report impressed investors. The stock rose 9% in the following trading session amid the company's rising free cash flow, which suggests that its high dividend is safe.
However, a deeper look at its finances may not bode well for the dividend. And given its business conditions and the performance of a key competitor, eliminating the payout could be a better decision for Verizon. Here's why.
Some of Verizon's financial challenges persist. Revenue for the first nine months of 2023 came in at $99 billion, a drop of 3% compared with the same period in 2022. Likewise, net income of $15 billion fell 3% year over year.
Source Fool.com
Verizon Communications Inc. Aktie
38,15 €
-0,90 %
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