10 Best Dividend-Paying Stocks Under $50

7. Verizon Communications Inc. (NYSE:VZ)

Upside Potential as of August 16: 12.48%

Share Price as of the close of August 16: $40.6

Verizon Communications Inc. (NYSE:VZ) is a New York-based telecommunications company that provides a wide range of communications, technology, and entertainment products and services to its consumers. According to Goldman Sachs, the US telecom industry is currently undergoing significant changes, with operators shifting their focus back to their core businesses after previous ventures as conglomerates led to losses in shareholder capital. The firm sees strong potential in these companies, driven by ongoing innovation. Verizon Communications Inc. (NYSE:VZ), in particular, has been expanding its 5G network since its initial deployment five years ago. The company bolsters its 5G operations with a robust spectrum position and an extensive fiber optic network, claiming to provide the most reliable 5G service in America, reaching over 200 million people.

Despite the ongoing transformation in the sector, Verizon Communications Inc. (NYSE:VZ) is getting a bullish outlook from analysts because of the company’s ability to deliver steady growth in revenue, EBITDA, and free cash flow in the coming months. This confidence is reinforced by Verizon’s Q1 2024 earnings, where the company reported approximately $33 billion in revenue, marking a slight 0.67% increase compared to the same period the previous year. In the first half of the year, the company generated over $16.5 billion in operating cash flow and its free cash flow for the period amounted to $8.5 billion.

Verizon Communications Inc. (NYSE:VZ) currently pays a quarterly dividend of $0.665 per share for a solid dividend yield of 6.55%, as recorded on August 16. It is among the best dividend stocks on our list as the company has been rewarding shareholders with growing dividends for the past 17 consecutive years.

Verizon Communications Inc. (NYSE:VZ) was a part of 67 hedge fund portfolios at the end of Q2 2024, the same as in the previous quarter, according to Insider Monkey’s database. The stakes held by these hedge funds have a collective value of over $1.5 billion.