5 Safe Dividend Stocks with High Yields

2. Verizon Communications Inc. (NYSE:VZ)

Dividend Yield as of December 29: 4.86%

Number of Hedge Funds: 57

Verizon Communications (NYSE:VZ) is amongst one of the biggest communication technology corporations globally and offers information and entertainment products and services as well. The company came into being after AT&T Corporation (NYSE:T) was instructed by the US Department of Justice to break down the Bell System into seven separate corporations in 1984. As a result, Bell Atlantic was created, which was later renamed Verizon Communications (NYSE:VZ) in 2000. The company has increased its dividend for the past 15 consecutive years. On December 2, Verizon Communications (NYSE:VZ) declared a quarterly dividend of 64 cents per share.

The New York-based telecom giant reported mixed Q3 2021 results on October 20. Verizon Communications (NYSE:VZ) reported $32.9 billion in revenue and an adjusted EPS of $1.41, compared to the analysts’ estimate of $33.2 billion in revenue and an adjusted EPS of $1.36.

In October, Colby Synesael at Cowen increased the price target on Verizon Communications from $68 to $71 and reiterated an Outperform rating on the stock. The analyst highlighted the good Q3 results and appreciated the raised FY21 guidance. The analyst also sees Verizon Communications (NYSE:VZ) as significantly undervalued.

Miller/Howard Investments shared its stance on Verizon Communications (NYSE:VZ) in its Q1 2021 investor letter. Here’s what the firm said:

“We sold Verizon (VZ) based on concerns over how much they might spend in ongoing spectrum auctions. Management may legitimately view spending billions of dollars to expand their spectrum holdings as necessary, but we believe the payoff will be slow and will make it challenging to grow the dividend at a good pace.”