Is Verizon's 6.2%-Yielding Dividend Still Safe After This Announcement?

Telecom giant Verizon Communications (NYSE: VZ) offers investors one of the highest-yielding payouts on the S&P 500, at around 6.2%. At that high a yield, you would need to invest around $16,100 to be able to collect $1,000 in annual dividend income. While that high level of yield is enticing, some investors may be concerned that such a high yield isn't safe. Share prices of Verizon are down 17% in the past three years, and there hasn't been much excitement in the business. Then there is also the fact that, recently, Verizon warned investors of worse-than-expected results to start the year. Could this news confirm that the stock is in trouble and that perhaps the dividend isn't all that safe?Earlier this month, Verizon management issued a warning, stating that the first quarter of the year may not be as strong as it had hoped it would be. It noted that competition is affecting its performance, as are concerns about the broader U.S. economy. While Verizon pulled back on promotions at the start of the year, other telecom providers did not, effectively making its plans less competitive.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool