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Here's My Top High-Yield Dividend Stock to Buy in January
The Motley Fool· 2026-01-08 01:03
Core Viewpoint - The article discusses the potential of Verizon as a high-yield dividend stock, highlighting its solid business fundamentals and sustainable dividend payments despite slow growth in revenue [3][6][12]. Group 1: Dividend Performance - Verizon offers a quarterly dividend of $0.69, translating to an annual payout of $2.76, resulting in a dividend yield of 6.9% at its current price [4]. - The company has consistently increased its dividend, marking its 19th consecutive annual increase with a modest hike of 1.25 cents per share [5]. - Over the past 12 months, Verizon paid out approximately $11.4 billion in dividends, representing only 54% of its trailing-12-month free cash flow of over $21.1 billion [6]. Group 2: Business Growth and Stability - Verizon's revenue for the third quarter of 2025 increased by 1.5% year-over-year to $33.8 billion, driven by a 2.1% rise in wireless service revenue, which reached $21.0 billion [7]. - The company's consumer wireless retail postpaid churn rate was low at 1.12%, with wireless retail postpaid phone churn at 0.91%, indicating strong customer retention [9]. - Verizon's shares are trading at about 8.6 times earnings and 1.2 times sales, suggesting a valuation that assumes stability with potential for growth beyond current performance [8]. Group 3: Financial Health and Risks - Verizon carries significant debt, with total unsecured debt at 5.9 times its net income and net unsecured debt at 2.2 times its adjusted EBITDA, which could impact its financial flexibility [11]. - The competitive nature of the wireless network business poses risks, as consumer choices are heavily influenced by pricing and service bundles [10]. - Despite these risks, Verizon's current valuation may provide an attractive opportunity for income-focused investors seeking a high-yield dividend stock [12].
Dividends Under $25: Don't Miss This 4.5% High-Yield Stock
247Wallst· 2025-10-25 13:26
Core Viewpoint - There are numerous high-yielding dividend stocks with significant turnaround potential that have fallen below the $20 per-share mark, presenting opportunities for investors willing to engage in bottom-fishing strategies [1] Group 1 - The fourth quarter presents a favorable time for investors to consider these undervalued stocks [1]
Here's How Many Shares of Verizon Communications Stock You Should Own to Get $1,000 in Yearly Dividends
The Motley Fool· 2025-04-23 08:58
Core Viewpoint - Verizon Communications offers a high-yield dividend stock with a current yield exceeding 6%, making it an attractive investment option for income-focused investors [1]. Dividend Information - Verizon pays a quarterly dividend of $0.6775 per share, totaling $2.71 annually, requiring ownership of 369 shares to generate $1,000 in dividend income [3]. Business Performance - Verizon's revenue increased by nearly 2% year-over-year, demonstrating growth despite the high penetration of smartphones in the U.S. market [4]. - The company added 1 million postpaid mobile and broadband subscribers in the most recently reported quarter, indicating strong customer acquisition [4]. Future Outlook - The completion of Verizon's extensive 5G infrastructure build-out is expected to enhance profitability and improve the balance sheet, positioning the company for competitive advantage [5]. - Management's ability to drive growth, even in a mature market, reinforces Verizon's status as a reliable high-yield dividend payer [6].