15 Best Stocks For Dividends

7. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 67

Verizon Communications Inc. (NYSE:VZ) offers services related to technology, communications, information, and entertainment. According to Goldman Sachs, the US telecom industry the U.S. telecom industry is undergoing a transformation, with operators now refocusing on their core businesses after previously operating as conglomerates, which resulted in shareholder capital losses. The firm sees a lot of potential in these companies due to continuous innovation. As far as Verizon Communications Inc. (NYSE:VZ) is concerned, the company began deploying its 5G network some five years ago and has been expanding it ever since. It supports its 5G operations with a strong spectrum position and an extensive fiber optic network, claiming to have the most reliable 5G carrier network in America. The company’s potential market is vast, reaching over 200 million people with its 5G service.

Despite ongoing transformations in the telecommunications industry, analysts remain confident that Verizon Communications Inc. (NYSE:VZ) will achieve consistent growth in revenue, EBITDA, and free cash flow over the upcoming months. This optimism is supported by the company’s Q1 2024 earnings, where it recorded approximately $33 billion in revenue, a modest increase of 0.21% from the previous year’s same period. Additionally, the company’s cash flow for the quarter increased from $2.3 billion to $2.7 billion.

Verizon Communications Inc. (NYSE:VZ)’s wireless segment showed strength in Q1 2024. Its total wireless revenue came in at $19.5 billion, up 3.3% from the prior-year period. Its fixed wireless revenue sat at $452 million, showing an increase of $197 million from Q1 2023. Though the company has a strong balance sheet, it faces challenges with its debt burden, totaling over $180 billion. With a payout ratio of 60%, the company allocates more than half of its earnings to its dividends, which restricts the amount of funds available for debt repayment. That said, its dividend history and positive outlook make it a reliable choice for income investors.

Verizon Communications Inc. (NYSE:VZ), one of the best stocks for dividends, pays a quarterly dividend of $0.665 per share. The company’s dividend growth streak currently spans over 17 years. The stock supports an impressive dividend yield of 6.52%, as of July 15.

The number of hedge funds tracked by Insider Monkey owning stakes in Verizon Communications Inc. (NYSE:VZ) grew to 67 in Q1 2024, from 63 in the previous quarter. These stakes are collectively valued at over $2.1 billion.