The Board of Directors of New York City-based Verizon Communications, Inc. (NYSE: VZ – $52.63) declared a quarterly dividend of $0.5775 per share, an increase of 1.25 cents per share, or 2.2%, from the previous quarter. On an annual basis, this increases Verizon’s dividend by 5 cents per share from $2.26 to $2.31. The quarterly dividend is payable on Nov. 1, 2016, to shareowners of record at the close of business on Oct. 7, 2016. This is the 10th consecutive year Verizon’s Board has approved a quarterly dividend increase. Chairman and CEO Lowell McAdam said, “Verizon’s dividend policy reflects the company’s continued commitment to create sustainable shareholder value.”
Verizon stock offers worthwhile capital appreciation potential over the coming 3 to 5 years, in my opinion. In addition, income-seeking types are likely to find the company’s dividend yield of 4.4% rather appealing at more than double that of the S&P 500 median, thus providing solid long-term total returns.