Verizon Communications Performance in 2024: Should You Buy or Avoid?

Verizon's outperformance (so far)

In the first four months of the year, Verizon has returned around 9% to investors. At an annual payout of $2.66 per share, shareholders earn a dividend yield of 6.7% annually, or just under 1.7% so far this year.

Dividend challenges

So far, Verizon has maintained its dividend, which includes a 17-year streak of payout hikes. Still, that comes at an annual cost of $11 billion per year. With the burden of $152 billion in total debt, a potential dividend cut may be necessary to alleviate financial strain on the company.

Avoid Verizon stock for now

Given Verizon's financial state, investors should probably sell the stock. The rising debt and interest rates may lead to an eventual dividend cut, jeopardizing the stock's performance in the short term. Until Verizon strengthens its balance sheet, investors are advised to seek returns elsewhere.