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. Stock
€37.08
-0.030%
With 22 Buy predictions and 1 Sell predictions Verizon Communications Inc. is one of the favorites of our community.
As a result the target price of 42 € shows a slightly positive potential of 13.28% compared to the current price of 37.08 € for Verizon Communications Inc..
