Is Verizon a Good Dividend Stock to Buy Now?
Reasons to Buy Verizon
Verizon is the largest member of America's telecommunications oligopoly, with a growing 5G network and stable subscription revenue.
Verizon's 5G network enables a fixed wireless service that has gained over 3 million subscribers in recent years.
Steady subscription revenue has allowed Verizon to raise its dividend payout for 17 consecutive years.
Reasons to Avoid Verizon
Verizon's earnings have been shrinking, its debt load is substantial, and its dividend growth rate lags behind inflation.
Verizon's high debt load limits its ability to invest and raise dividends at a faster pace.
If earnings stagnate, Verizon might have to reduce its dividend payout.Conclusion: Investors should carefully evaluate Verizon's stability metrics and high dividend yield against its challenges in terms of earnings growth and debt load before making an investment decision.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.