Why Verizon's Dividend Is Not Safe
One of the more surprising stories in investing is the struggles of Verizon (NYSE: VZ), only one of three U.S. companies providing nationwide wireless service. One might think that oligopoly power would amount to rising profits, considering the necessity of wireless coverage in today's society.
Nonetheless, maintaining such networks comes at a tremendous cost, and the evolution of the technology means the company will probably keep spending heavily to support its business. These factors make it much harder for Verizon to maintain its current dividend over the long term.
On the surface, Verizon's dividend looks like one of the most desirable payouts in the S 500. At $2.61 per share annually, it equates to a dividend yield of around 7.2%. Moreover, the dividend has increased every year since 2007.
Source Fool.com
Verizon Communications Inc. Aktie
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