Comparing Verizon and AT&T Dividend Stocks
A better income stream
Verizon offers a better income stream. My long-standing relationship with the telecom giant was one of the many reasons I initially bought its stock.
Verizon's Dividend Growth
- Verizon raised its dividend 2% last September, marking its 17th consecutive year of dividend growth.
- Verizon's long-term target is to reduce leverage ratio and return more cash to investors.
AT&T's Financial Challenges
- AT&T slashed its dividend in half following a spinoff, impacting its financial flexibility.
- Debt levels and leverage ratio remain a concern for AT&T.
Further along
Verizon is ahead in deleveraging and aims to return more cash to investors. Capital spending reduction and rising free cash flow put Verizon closer to increasing dividends.
AT&T's Balance Sheet
AT&T is progressing in reducing debt but still lags behind Verizon's financial strength and dividend growth potential.
Verizon is the better option for income investors
Verizon's higher-yielding dividend, stronger balance sheet, and growth prospects make it the preferred choice for income-focused investors.
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.