Why I'm Not Worried About Verizon's 8%-Yielding Dividend
Shares of (NYSE: VZ) got shellacked earlier this week. That followed a Wall Street Journal investigation finding toxic lead in cables laid by telecom companies to build out regional telephone networks years ago. The report caused concern that Verizon could be required to remediate the problem, which could cost a lot of money.
That sell-off pushed Verizon's dividend yield up to around 8%. That's several times the market's average (the S 500's dividend yield is currently around 1.5%). It suggests investors are concerned that the telecom giant might need to reduce its payout.
I don't subscribe to that bearish view, which is why I've been buying Verizon's stock for its dividend hand over fist. Here's why I'm still not worried about Verizon's dividend, even after the latest revelation.
Source Fool.com
Verizon Communications Inc. Stock
With 20 Buy predictions and only 1 Sell predictions the community sentiment for the stock is positive.
As a result the target price of 42 € shows a slightly positive potential of 11.07% compared to the current price of 37.82 € for Verizon Communications Inc..
