Better networks set to fuel Verizon’s dividend

Article Excerpt

VERIZON COMMUNICATIONS INC. $51 (New York symbol VZ; Income-Growth Dividend Portfolio, Utilities sector, Shares outstanding: 4.1 billion; Market cap: $209.1 billion; Dividend yield: 4.6%; Dividend Sustainability Rating: Highest; www.verizon.com) has 116.5 million wireless users, 12.3 million phone customers and 15.4 million Internet and TV subscribers. With the November 2017 payment, the company raised its quarterly dividend by 2.2%, to $0.59 a share from $0.5775. The new annual rate of $2.36 yields a high 4.6%. Verizon has now raised its dividend each year for the past 13 years. In 2014, the company bought the 45% of the Verizon Wireless joint venture it didn’t already own from U.K.-based Vodafone Group (Nasdaq symbol VOD). Verizon paid $130 billion for Vodafone’s stake. Focus on wireless continues to pay off Thanks to that purchase, the company’s revenue rose 14.0%, from $115.8 billion in 2012 to $131.6 billion in 2015. In 2016, Verizon sold some of its local telephone operations. As a result, revenue for that year fell to $126.0 billion. Its revenues…