13 Best Dividend Stocks to Buy Under $50

4. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 56

Share Price as of the Close of December 20: $39.93

Verizon Communications Inc. (NYSE:VZ) is a New York-based telecommunications company that offers services in communications, technology, information, and entertainment. The company has successfully expanded its customer base despite intense competition. In the third quarter of 2024, it reported 239,000 net additions to its retail postpaid phone customers—more than double the figure from the same period last year. Consequently, total wireless service revenue rose to $19.8 billion, reflecting a 2.7% year-over-year increase.

This growth extends beyond the Wireless segment. The Broadband segment also added 389,000 broadband connections, marking the ninth consecutive quarter with over 375,000 net additions. Verizon Communications Inc. (NYSE:VZ) has been focusing on enhancing its fiber network to deliver superior broadband and mobility services. As part of this effort, the company announced on September 5 a $20 billion strategic acquisition of Frontier Communications, the largest fiber-focused provider in the U.S. This move will boost its fiber customer base to around 25 million, with a target to reach 30 million customers by 2028 and a long-term goal of 35 to 40 million subscribers.

Verizon Communications Inc. (NYSE:VZ) maintains a strong financial foundation, reinforcing its status as a reliable provider of dividends. Over the first nine months of the year, the company reported $26.5 billion in operating cash flow and $14.5 billion in free cash flow. With a track record of 18 consecutive years of dividend growth, Verizon continues to prioritize rewarding its shareholders. The company currently pays a quarterly dividend of $0.6775 per share and has a dividend yield of 6.81%, as of December 23. It is among the best dividend stocks under $50.

Insider Monkey’s database of 900 hedge funds indicated that 57 funds held stakes in Verizon Communications Inc. (NYSE:VZ) in Q3 2024, compared with 67 in the previous quarter. These stakes have a total value of over $3.2 billion. Among these hedge funds, GQG Partners was the company’s leading stakeholder in Q3.