Verizon (NYSE: VZ) is the world’s second-largest telecommunications company — after AT&T. In 2021, Verizon’s revenue grew 4.1%, bringing in $17.8 billion (up 6.5% year over year) in Q4 alone. The company also delivered on its goal to achieve $10 billion in cost savings. With a full-year cash flow of $39.5 billion, the telecommunications company enjoyed a lucrative 2021.
One thing that attracts investors to Verizon is its dividend, which the company has consistently increased over the past 15 years. With a current annual dividend of $2.56 per share, Verizon provides a 4.76% annual yield — one of the highest in the S&P 500 as well as one of the most reliable. Yet its valuation is relatively cheap compared to the long-term value it can potentially provide.
Two of the company’s main 2022 priorities are strengthening and growing its core business and leveraging assets to grow its 5G capabilities. If the company can deliver on these goals and continue to grow its dividend, as it has in the past, the current stock price makes it a bargain for investors looking for investment income.
10 stocks we like better than Intel
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
