VZ Stock: A Brief Overview

VZ stock, also known as Verizon Communications Inc., is a telecommunications company based in the United States. With a market capitalization of over $227 billion, it is among the world’s largest companies. It is a publicly traded company on the New York Stock Exchange and is listed under the ticker symbol VZ. It is also a component of the Dow Jones Industrial Average. Verizon was created in 2000 when Bell Atlantic and GTE merged. It is a leader in the telecommunications industry and provides services in the United States, Canada, and Latin America.

VZ Stock Dividend History

Verizon has a long history of dividend payments and has paid dividends since it was founded in 2000. VZ stock has a dividend yield of 4.6%, which is higher than the industry average of 2.6%. Over the past 10 years, the company has paid an increasing dividend each year. In 2020, the company paid a quarterly dividend of $0.6025 per share, representing an increase of 4.3% over the previous year. The company has also increased its annual dividend payments over the past decade, from $1.64 per share in 2010 to $2.52 per share in 2020.

VZ Stock Dividend Payout Ratio

The dividend payout ratio measures the percentage of a company’s earnings that is paid out in dividends. This ratio is an important indicator of a company’s ability to pay its dividend payments. Verizon’s dividend payout ratio has remained relatively stable over the past decade, ranging from a low of 43% in 2011 to a high of 51% in 2014. Currently, the dividend payout ratio for VZ stock is at 48%, which is slightly lower than the industry average of 50%.

VZ Stock Price Performance Over The Past Decade

VZ stock has performed strongly over the past decade, with the share price increasing from $37.45 in 2010 to $58.56 in 2020. Over this period, the stock has had an average annual return of 8.1%, much higher than the S&P 500’s average annual return of 6.9%. The stock has also outperformed its industry peers, with an average annual return of 8.2% compared to the industry average of 5.9%.

VZ Stock Dividend Safety

Verizon’s dividend safety is strong and is supported by its strong financial position. The company has a debt-to-equity ratio of 0.8, which is lower than the industry average of 2.2. The company also has a current ratio of 1.2, which is higher than the industry average of 1.1. Additionally, the company has consistently generated positive free cash flow over the past decade, which is an important indicator of dividend safety.

VZ Stock Valuation

VZ stock is currently trading at a price-to-earnings ratio of 12.5, which is lower than the industry average of 16.5. This indicates that the stock is currently undervalued compared to its peers. Additionally, the stock has a price-to-book ratio of 0.9, which is lower than the industry average of 1.2. This suggests that the stock is currently undervalued relative to its book value.

VZ Stock Summary

Verizon has a long history of dividend payments and has paid an increasing dividend each year over the past decade. The company also has a strong dividend safety profile and is currently undervalued relative to its peers. With its strong financial position, dividend safety, and undervaluation, VZ stock is an attractive investment for income-seeking investors.