Verizon Just Increased Its Dividend for the 18th Year in a Row. Will Its $20 Billion Acquisition Put That Streak in Jeopardy?
(NYSE: VZ) is one of the top dividend stocks in the S 500. The telecom giant's payout currently yields more than 6.5%. That puts it among the 10 highest yields in that broad market index, where the average is less than 1.5%.
Further, the company recently increased its payout for the 18th straight year. That's the longest current streak in the U.S. telecom sector.
A big factor driving Verizon's ability to continue increasing its dividend has been its improving free cash flow and leverage ratio. However, the company recently agreed to acquire Frontier Communications (NASDAQ: FYBR). While that deal will enhance its fiber network, the $20 billion all-cash acquisition will saddle it with a lot more debt. That increased leverage could impact the company's ability to continue growing its dividend.
Source Fool.com
Verizon Communications Inc. Stock
The stock is one of the favorites of our community with 21 Buy predictions and 1 Sell predictions.
With a target price of 42 € there is a slightly positive potential of 6.72% for Verizon Communications Inc. compared to the current price of 39.36 €.
