Verizon's board of directors green-lighted the 16th straight year of dividend increases.
The quarterly dividend of 65.25 cents per outstanding share is an increase of 1.25 cents per share from the previous quarter.
"Our consistently disciplined approach to the market to maximize growth and profitability has again put the Verizon Board in a position to raise the dividend," Verizon chairman and CEO Hans Vestberg said in a statement. "We will continue to execute our network-as-a-service strategy to deliver long-term shareholder value."
|VZ||VERIZON COMMUNICATIONS INC.||38.25||-0.41||-1.06%|
The quarterly dividend will be payable on Nov. 1 to Verizon stockholders of record at the close of business on Oct. 7. Verizon has approximately 4.2 billion shares of common stock outstanding.
The move marks the 16th consecutive year that the telecommunications giant's board has approved a quarterly dividend increase. The company made approximately $5.4 billion in cash dividend payments in the first half of 2022.
As of the time of publication, Verizon shares have slid approximately 21% year to date. The company currently has an annual dividend yield of 6.21%.
In July, Verizon lowered its fiscal year 2022 adjusted earnings per share guidance range to $5.10 to $5.25, compared to its previous forecast of $5.40 to $5.55 per share. The company expects wireless service revenue growth of 8.5% to 9.5%, down from previous growth guidance of 9% to 10%, and service and other revenue growth of minus 1% to flat, down from guidance of approximately flat.
Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth is expected to come in between minus 1.5% to flat, compared to previous adjusted EBITDA growth guidance of 2% to 3%.
Last month, General Motors announced it would reinstate a quarterly cash dividend that was cut in April 2020 during the height of the COVID-19 pandemic.
|GM||GENERAL MOTORS CO.||33.74||+0.23||+0.70%|
In addition, AMC Entertainment declared a special dividend in the form of preferred shares, which currently trade under the ticker symbol ‘APE’, and Tesla gave stockholders of record as of Aug. 17 a dividend of two additional shares of common stock for each then-held share as part of a 3-for-1 stock split.