Daily dividend news for investors in dividend stocks

5G, Less Debt, And A Growing Yield, That's Verizon

Published Sun, 26 May 2019 22:05:51 -0400 on Seeking Alpha

Looking at Verizon (NYSE: VZ) and AT&T (NYSE: T), investors are being shown two different ways to approach the future. On the one hand, Verizon is essentially sticking to its knitting. The company isn’t involved in any huge deals, claims to not be interested in one, and is laser-focused on building out the promise of 5G. On the other hand, AT&T has transformed itself with purchases of DirecTV and Time Warner over the past many years. Though AT&T has a bigger yield and its diversity may seem appealing, there are three reasons to believe that Verizon should keep moving higher.
Less debt and more focus
One reason Verizon should keep rising is that it plans on paying down debt, while building its 5G capabilities. The company made its dual focus very clear during the last conference call. CEO Hans Vestberg mentioned 5G Mobile, 5G Home, and 5G phones as expected for this year and next. The company’s CFO Matt Ellis talked about Verizon’s plans for debt retirement. He noted that in Q1 2018, the company’s EBITDA was 2.4 times. One year later, Verizon’s EBITDA is down to 2.1, and the goal is 1.75 to 2. Just to put numbers to this metric, in the most recent quarter, the company’s net long-term debt was $111 billion, which was down nearly 4% from last year.
AT&T is on a similar path of debt reduction. The company took on billions in debt to acquire Time Warner. What should surprise investors was a comment made by the company’s CEO, Randall Stephenson, on... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
AT&T 38.38   16.1 2.38 2.04 5.43

AT&T - T
AT&T - T  

Older articles featuring At&t (T):
The Retirees' Dividend Portfolio - John And Jane's October Taxable Account Update: Budgeting In Retirement.
WisdomTree U.S. Large Cap Dividend ETF: Favorable Outlook Continues
My Dividend Growth Portfolio October Update: 36 Holdings, 11 Buys, 8 Sells, 3.59% Yield
5%+ Dividend Yield Portfolio: Winning With A Defensive Tilt (October 2019 Review)
Three Dividend Increases to Watch In December 2019
Here Are Your 57 Dividend Aristocrats For November
The Most Undervalued And Overvalued Dividend Champions - November 2019
Blue Chip DRiP: October 2019 Dividend Income Portfolio Update
Swapping Apple For Apple - October Dividend Portfolio Update
Bloomberg 50 Companies To Watch In 2020: 31 Pay Dividends