Verizon Communications Shares Cross 6% Yield Mark

Forbes

According to Dividend Channel, in trading on Tuesday, shares of Verizon Communications Inc (VZ) were yielding above the 6% mark based on its quarterly dividend (annualized to $1.95), with the stock changing hands as low as $32.28 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1998 — you would have paid $123.31 per share. Fast forward to 12/31/2010 and each share was worth $125.75 on that date, a mere $2.44 or 2% increase over all those years. But now consider that you collected a whopping $20.53 per share in dividends over the same period, increasing your return to 18.6%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.4%; so by comparison collecting a yield above 6% would appear considerably attractive if that yield is sustainable. Verizon Communications Inc (VZ) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.

In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Verizon Communications Inc, looking at the history chart for VZ below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 6% annual yield.

VZ Dividend History
Date Div*
07/06/11 0.488
04/06/11 0.488
01/06/11 0.488
10/06/10 0.488
07/07/10 0.475
04/07/10 0.475
01/06/10 0.475
10/07/09 0.475
07/08/09 0.460
04/07/09 0.460
01/07/09 0.460
10/08/08 0.460
07/08/08 0.430
04/08/08 0.430
04/01/08 0.170
01/08/08 0.430
10/05/07 0.430
07/06/07 0.405
04/05/07 0.405
01/08/07 0.405
11/20/06 1.313
10/05/06 0.405
07/06/06 0.405
04/06/06 0.405
01/06/06 0.405
10/05/05 0.405
07/06/05 0.405
04/06/05 0.405
01/06/05 0.385
10/06/04 0.385
07/07/04 0.385
04/06/04 0.385
01/07/04 0.385
10/08/03 0.385
07/08/03 0.385
04/08/03 0.385
01/08/03 0.385
10/08/02 0.385
07/08/02 0.385
04/08/02 0.385
01/08/02 0.385
10/05/01 0.385
07/06/01 0.385
04/06/01 0.385
01/08/01 0.385
10/05/00 0.385
07/06/00 0.047
07/03/00 0.385
04/06/00 0.385
01/06/00 0.385
10/06/99 0.385
07/07/99 0.386
04/07/99 0.385
01/06/99 0.385
10/07/98 0.385
07/08/98 0.385
04/07/98 0.385
01/07/98 0.385
10/08/97 0.385
04/08/97 0.370
01/08/97 0.360
10/08/96 0.360
07/08/96 0.360
04/08/96 0.360
01/08/96 0.350
10/05/95 0.350
* Data may be adjusted for splits; we are not responsible for data errors; always verify data with the company.

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VZ+Dividend+History+Chart

VZ makes up 27.93% of the Telecom HOLDRS ETF (TTH)

VZ operates in the Communications Services sector, among companies like PT Indosat Tbk (IIT) which is off about 2.3% today, and China Mobile Limited (CHL) trading lower by about 0.6%. Below is a three month price history chart comparing the stock performance of VZ, versus IIT and CHL.

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VZ,IIT,CHL Relative Performance Chart


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