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Verizon Communications

NYSE:VZ
Snowflake Description

6 star dividend payer with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VZ
NYSE
$236B
Market Cap
  1. Home
  2. US
  3. Telecom
Company description

Verizon Communications Inc., through its subsidiaries, offers communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. The last earnings update was 48 days ago. More info.


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VZ Share Price and Events
7 Day Returns
-4%
NYSE:VZ
-0.6%
US Telecom
-1.5%
US Market
1 Year Returns
5.1%
NYSE:VZ
-8.2%
US Telecom
-4.2%
US Market
VZ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Verizon Communications (VZ) -4% -7.1% 2.9% 5.1% 21.9% 15.2%
US Telecom -0.6% -3.3% -5% -8.2% 1.6% -3.6%
US Market -1.5% -5.2% -11.2% -4.2% 27.3% 35.3%
1 Year Return vs Industry and Market
  • VZ outperformed the Telecom industry which returned -8.2% over the past year.
  • VZ outperformed the Market in United States of America which returned -4.2% over the past year.
Price Volatility
VZ
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Verizon Communications undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Verizon Communications to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Verizon Communications.

NYSE:VZ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 27 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:VZ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.33
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.326 (1 + (1- 21%) (48.44%))
0.45
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.8 * 7.05%)
8.59%

Discounted Cash Flow Calculation for NYSE:VZ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Verizon Communications is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:VZ DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 20,041.21 21,354.80 23,072.00 23,952.00 24,150.71
Source Analyst x11 Analyst x5 Analyst x2 Analyst x2 Est @ 0.83%
Present Value
Discounted (@ 8.59%)
18,455.85 18,109.89 18,018.38 17,225.92 15,994.87
Present value of next 5 years cash flows $87,804.92
NYSE:VZ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $24,150.71 × (1 + 2.95%) ÷ (8.59% – 2.95%)
$440,836.11
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $440,836.11 ÷ (1 + 8.59%)5
$291,963.12
NYSE:VZ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $87,804.92 + $291,963.12
$379,768.04
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $379,768.04 / 4,132.02
$91.91
NYSE:VZ Discount to Share Price
Calculation Result
Value per share (USD) From above. $91.91
Current discount Discount to share price of $55.95
= -1 x ($55.95 - $91.91) / $91.91
39.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Verizon Communications is available for.
Intrinsic value
39%
Share price is $55.95 vs Future cash flow value of $91.91
Current Discount Checks
For Verizon Communications to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Verizon Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Verizon Communications's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Verizon Communications's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Verizon Communications's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:VZ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $7.84
NYSE:VZ Share Price ** NYSE (2018-12-17) in USD $55.95
United States of America Telecom Industry PE Ratio Median Figure of 20 Publicly-Listed Telecom Companies 14.92x
United States of America Market PE Ratio Median Figure of 3,017 Publicly-Listed Companies 16.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Verizon Communications.

NYSE:VZ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:VZ Share Price ÷ EPS (both in USD)

= 55.95 ÷ 7.84

7.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Verizon Communications is good value based on earnings compared to the US Telecom industry average.
  • Verizon Communications is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Verizon Communications's expected growth come at a high price?
Raw Data
NYSE:VZ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.14x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts
2.9%per year
United States of America Telecom Industry PEG Ratio Median Figure of 11 Publicly-Listed Telecom Companies -0.4x
United States of America Market PEG Ratio Median Figure of 2,105 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

NYSE:VZ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.14x ÷ 2.9%

2.5x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Verizon Communications is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Verizon Communications's assets?
Raw Data
NYSE:VZ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $13.19
NYSE:VZ Share Price * NYSE (2018-12-17) in USD $55.95
United States of America Telecom Industry PB Ratio Median Figure of 35 Publicly-Listed Telecom Companies 1.86x
United States of America Market PB Ratio Median Figure of 5,082 Publicly-Listed Companies 1.7x
NYSE:VZ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:VZ Share Price ÷ Book Value per Share (both in USD)

= 55.95 ÷ 13.19

4.24x

* Primary Listing of Verizon Communications.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Verizon Communications is overvalued based on assets compared to the US Telecom industry average.
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Value checks
We assess Verizon Communications's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. Verizon Communications has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Verizon Communications expected to perform in the next 1 to 3 years based on estimates from 27 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Verizon Communications expected to grow at an attractive rate?
  • Verizon Communications's earnings growth is positive but not above the low risk savings rate of 3%.
Growth vs Market Checks
  • Verizon Communications's earnings growth is positive but not above the United States of America market average.
  • Verizon Communications's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:VZ Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:VZ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts 2.9%
NYSE:VZ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 27 Analysts 1.3%
United States of America Telecom Industry Earnings Growth Rate Market Cap Weighted Average 1.3%
United States of America Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:VZ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:VZ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 139,032 43,879 22,540 1
2021-12-31 136,471 42,528 21,877 2
2020-12-31 134,292 39,172 20,288 12
2019-12-31 132,444 37,089 19,618 25
2018-12-31 130,955 34,407 18,101 27
NYSE:VZ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 130,537 35,074 32,258
2018-06-30 129,647 32,432 30,954
2018-03-31 127,992 30,577 31,196
2017-12-31 126,034 25,305 30,101
2017-09-30 124,419 21,561 15,927
2017-06-30 123,639 19,208 15,927
2017-03-31 123,623 16,689 12,267
2016-12-31 125,980 22,810 13,127
2016-09-30 127,894 28,228 14,023
2016-06-30 130,115 32,932 14,441
2016-03-31 131,807 36,258 17,970
2015-12-31 131,620 39,027 17,879

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Verizon Communications's earnings are expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).
  • Verizon Communications's revenue is expected to grow by 1.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:VZ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below

All data from Verizon Communications Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:VZ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 5.24 5.24 5.24 1.00
2021-12-31 5.14 5.14 5.14 1.00
2020-12-31 4.90 5.03 4.76 7.00
2019-12-31 4.75 4.88 4.65 15.00
2018-12-31 4.33 4.65 3.39 14.00
NYSE:VZ Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 7.84
2018-06-30 7.54
2018-03-31 7.63
2017-12-31 7.37
2017-09-30 3.90
2017-06-30 3.90
2017-03-31 3.01
2016-12-31 3.22
2016-09-30 3.44
2016-06-30 3.54
2016-03-31 4.41
2015-12-31 4.38

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Verizon Communications is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Verizon Communications's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Verizon Communications has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Verizon Communications performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Verizon Communications's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Verizon Communications has delivered over 20% year on year earnings growth in the past 5 years.
  • Verizon Communications's 1-year earnings growth exceeds its 5-year average (102.5% vs 24.3%)
  • Verizon Communications's earnings growth has not exceeded the US Telecom industry average in the past year (102.5% vs 140.9%).
Earnings and Revenue History
Verizon Communications's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Verizon Communications Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:VZ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 130,537.00 32,258.00 29,331.00
2018-06-30 129,647.00 30,954.00 29,566.00
2018-03-31 127,992.00 31,196.00 27,685.00
2017-12-31 126,034.00 30,101.00 27,818.00
2017-09-30 124,419.00 15,927.00 27,530.00
2017-06-30 123,639.00 15,927.00 26,987.00
2017-03-31 123,623.00 12,267.00 28,060.00
2016-12-31 125,980.00 13,127.00 28,788.00
2016-09-30 127,894.00 14,023.00 26,786.00
2016-06-30 130,115.00 14,441.00 27,324.00
2016-03-31 131,807.00 17,970.00 29,096.00
2015-12-31 131,620.00 17,879.00 32,496.00
2015-09-30 130,558.00 10,257.00 40,237.00
2015-06-30 128,986.00 9,914.00 40,547.00
2015-03-31 128,245.00 9,897.00 40,123.00
2014-12-31 127,079.00 9,625.00 40,485.00
2014-09-30 124,952.00 16,923.00 27,016.00
2014-06-30 123,645.00 15,460.00 26,776.00
2014-03-31 121,948.00 13,492.00 27,273.00
2013-12-31 120,550.00 11,497.00 27,089.00
2013-09-30 119,530.00 2,201.00 39,456.00
2013-06-30 118,258.00 1,562.00 39,785.00
2013-03-31 117,024.00 1,141.00 39,615.00
2012-12-31 115,846.00 875.00 39,167.00
2012-09-30 114,237.00 3,081.00 37,221.00
2012-06-30 113,143.00 2,867.00 36,544.00
2012-03-31 112,127.00 2,651.00 36,040.00
2011-12-31 110,875.00 2,404.00 35,624.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Verizon Communications made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Verizon Communications used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.
  • Verizon Communications has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Verizon Communications's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Verizon Communications has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Verizon Communications's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Verizon Communications's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Verizon Communications's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Verizon Communications's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Verizon Communications's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Verizon Communications Company Filings, last reported 2 months ago.

NYSE:VZ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 56,087.00 114,255.00 2,538.00
2018-06-30 53,575.00 115,698.00 1,750.00
2018-03-31 52,345.00 119,926.00 1,923.00
2017-12-31 44,687.00 117,508.00 2,079.00
2017-09-30 28,451.00 117,680.00 4,487.00
2017-06-30 26,761.00 117,724.00 4,583.00
2017-03-31 25,037.00 116,842.00 4,307.00
2016-12-31 24,032.00 108,314.00 2,880.00
2016-09-30 21,983.00 106,593.00 6,441.00
2016-06-30 20,744.00 99,960.00 2,857.00
2016-03-31 20,103.00 109,999.00 5,846.00
2015-12-31 17,842.00 109,772.00 5,070.00
2015-09-30 14,542.00 112,332.00 4,431.00
2015-06-30 12,874.00 113,849.00 3,567.00
2015-03-31 10,759.00 113,689.00 4,933.00
2014-12-31 13,676.00 113,471.00 11,153.00
2014-09-30 17,968.00 109,491.00 7,853.00
2014-06-30 16,012.00 110,044.00 6,424.00
2014-03-31 13,851.00 109,769.00 3,544.00
2013-12-31 95,416.00 93,591.00 54,129.00
2013-09-30 90,265.00 99,140.00 57,357.00
2013-06-30 87,156.00 49,752.00 2,406.00
2013-03-31 87,588.00 52,881.00 6,135.00
2012-12-31 85,533.00 51,987.00 3,563.00
2012-09-30 92,628.00 52,802.00 10,325.00
2012-06-30 90,428.00 52,391.00 10,802.00
2012-03-31 88,421.00 51,597.00 6,542.00
2011-12-31 85,908.00 55,152.00 13,954.00
  • Verizon Communications's level of debt (203.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (109.7% vs 203.7% today).
  • Debt is well covered by operating cash flow (30.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.3x coverage).
X
Financial health checks
We assess Verizon Communications's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Verizon Communications has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Verizon Communications's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.31%
Current annual income from Verizon Communications dividends. Estimated to be 4.35% next year.
If you bought $2,000 of Verizon Communications shares you are expected to receive $86 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Verizon Communications's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).
  • Verizon Communications's dividend is above the markets top 25% of dividend payers in United States of America (3.77%).
Upcoming dividend payment

Purchase Verizon Communications on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:VZ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
United States of America Telecom Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 5.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1983 Stocks 2.6%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:VZ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 2.60 1.00
2021-12-31 2.54 2.00
2020-12-31 2.48 13.00
2019-12-31 2.44 22.00
2018-12-31 2.38 21.00
NYSE:VZ Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-12-06 2.410 4.173
2018-09-06 2.410 4.296
2018-06-07 2.360 4.583
2018-03-06 2.360 4.899
2017-12-07 2.360 4.587
2017-09-07 2.360 4.912
2017-06-01 2.310 4.987
2017-03-03 2.310 4.840
2016-12-01 2.310 4.536
2016-09-01 2.310 4.625
2016-06-02 2.260 4.192
2016-03-04 2.260 4.369
2015-12-03 2.260 4.736
2015-09-03 2.260 5.017
2015-06-04 2.200 4.696
2015-03-06 2.200 4.457
2014-12-04 2.200 4.609
2014-09-04 2.200 4.435
2014-06-05 2.120 4.269
2014-03-07 2.120 4.439
2013-12-05 2.120 4.436
2013-09-03 2.120 4.356
2013-06-06 2.060 4.145
2013-03-08 2.060 4.073
2012-12-06 2.060 4.656
2012-09-06 2.060 4.638
2012-06-07 2.000 4.547
2012-03-02 2.000 5.046
2011-12-01 2.000 5.203
2011-09-01 2.000 5.474
2011-06-02 1.950 5.429
2011-03-04 1.950 5.255
2010-12-02 1.950 5.498
2010-09-02 1.950 6.041
2010-06-03 1.900 6.661
2010-03-05 1.900 6.492
2009-12-03 1.900 6.152
2009-09-03 1.900 6.315
2009-06-04 1.840 6.048
2009-03-04 1.840 6.120
2008-12-18 1.840 6.014

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Verizon Communications's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Verizon Communications's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Verizon Communications afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Verizon Communications has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Verizon Communications's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Hans Vestberg
COMPENSATION $10,098,430
AGE 53
TENURE AS CEO 0.3 years
CEO Bio

Mr. Hans E. Vestberg has been Chief Executive Officer at Verizon Communications Inc. since August 01, 2018. He was Executive Vice President and President of Global Networks at Verizon Communications Inc. till August 01, 2018 and was its Chief Technology Officer from September 29, 2017 to August 01, 2018. Mr. Vestberg serves as the Chief Executive Officer and President of Ericsson Power Modules AB. Mr. Vestberg served as the Chief Executive Officer and President of Telefonaktiebolaget LM Ericsson (publ) since January 1, 2010 until July 25, 2016. He served as Head of Segment Networks of Telefonaktiebolaget LM Ericsson (publ) since January 15, 2015. He served as an Executive Vice President and General Manager of Business Unit Global Services of Ericsson Inc. Mr. Vestberg joined Telefonaktiebolaget LM Ericsson (publ) in 1988. He has significant international experience, including Ericsson positions in Brazil, China, Mexico and the United States. Mr. Vestberg served as the Chief Financial Officer of Ericsson AB (Sweden). Mr. Vestberg served as the Chief Financial Officer of Telefonaktiebolaget LM Ericsson (publ) from October 2007 to January 01, 2010. He served as Chief Executive Officer and President at ST-Ericsson NV. He served as an Executive Vice President of Ericsson Telecomunicacoes S.A. since 2005 and served as its General Manager of Business Unit Global Services since 2003. He served as the Head of Business Unit Global Services and Executive Vice President at Ericsson S.p.A. since February 14, 2005. He served as the Chief Executive Officer and President of Ericsson Nikola Tesla d.d. He served as an Executive Vice President and General Manager of Business Unit Global Services at Ericsson NV/SA. He served as an Executive Vice President at Telefonaktiebolaget LM Ericsson (publ) from February 15, 2005 to January 1, 2010. He served as Head of Group Function Finance at Telefonaktiebolaget LM Ericsson (publ) from October 2007 to January 01, 2010. Mr. Vestberg served as the Chief Financial Officer at Telefonaktiebolaget LM Ericsson (publ) from October 2007 to January 01, 2010. He served as the Chief Financial Officer and Head of Group Function Finance at Ericsson Nikola Tesla d.d and served as its First Executive Vice President since October 2007. He served as Senior Vice President of Ericsson Telecomunicacoes S.A since January 2004. He served as Senior Vice President and General Manager of Business Unit Global Services of Telefonaktiebolaget Lm Ericsson (publ) since January 2004. Mr. Vestberg served as a Senior Vice President of Telefonaktiebolaget LM Ericsson (publ) from April 2004 to February 2005 and vice president and General Manager of Business Unit Global Services since July 1, 2003. Mr. Vestberg served as the Head of Business Unit Global Services of Telefonaktiebolaget LM Ericsson (publ) from July 1, 2003 to December 31, 2007 and was a member of the Ericsson Corporate Management Team. Over the past 12 years Mr. Vestberg has served in a number of different capacities within Ericsson, as Vice President and Head of market unit Mexico from 2002 to 2003. From 2000 to 2002, he served as Chief Financial Officer, North America and controller market area Americas. From 1998 to 2000, Mr. Vestberg served as Chief Financial Officer of Ericsson Brazil. During his years with Ericsson he has held various positions in China, Sweden, Chile and Brazil. Mr. Vestberg joined Ericsson in 1991 within the Accounting area of Production. Mr. Vestberg served as the Chairman at ST-Ericsson NV. He was Vice Chairman and Director of Hexagon AB from May 2, 2017 to August 01, 2018. He has been Director of Verizon Communications Inc. since June 2018. He has been a Director of United Nations Foundation since June 2015. He served as a Director of Telefonaktiebolaget LM Ericsson (publ) since April 2010 until July 25, 2016. His leadership extends beyond his capacity at Ericsson. He is a leading voice on the global stage in support of effective international development goals. He has spoken out as an advocate of the Millennium Development Goals (MDGs), and for the potential of mobile technologies and broadband to tackle some of the world's most compelling challenges, such as poverty, health, education and climate change. He is a Founding Member of the Broadband Commission for Digital Development, established by the International Telecommunication Union (ITU) and UNESCO, where he chairs the task group on the post-2015 development agenda and previously chaired the climate change working group. Mr. Vestberg is also a member of the Leadership Council of the United Nation's Sustainable Development Solutions Network. Mr. Vestberg graduated with a Bachelor of Business Administration and Economics from the University of Uppsala, Sweden, in 1991.

CEO Compensation
  • Insufficient data for Hans to compare compensation growth.
  • Hans's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Verizon Communications management team in years:

3
Average Tenure
53
Average Age
  • The tenure for the Verizon Communications management team is about average.
Management Team

Lowell McAdam

TITLE
Executive Chairman & Executive Officer
COMPENSATION
$18M
AGE
63
TENURE
0.3 yrs

Hans Vestberg

TITLE
CEO & Director
COMPENSATION
$10M
AGE
53
TENURE
0.3 yrs

Matt Ellis

TITLE
Executive VP & CFO
COMPENSATION
$6M
AGE
47
TENURE
2.1 yrs

Kyle Malady

TITLE
Acting Chief Technology Officer & Chief Network Operations Officer
TENURE
0.9 yrs

Marc Reed

TITLE
Executive VP & Chief Administrative Officer
COMPENSATION
$6M
AGE
59
TENURE
6.9 yrs

Craig Silliman

TITLE
Executive VP of Public Policy
AGE
50
TENURE
3.9 yrs

Jim Gerace

TITLE
Chief Communications Officer
AGE
54
TENURE
5.5 yrs

Diego Scotti

TITLE
Executive VP & Chief Marketing Officer
AGE
45
TENURE
4.2 yrs

Magda Yrizarry

TITLE
Senior VP and Chief Talent & Diversity Officer

John Wimsatt

TITLE
Senior Vice President of Product Development
Board of Directors Tenure

Average tenure and age of the Verizon Communications board of directors in years:

6.9
Average Tenure
62.5
Average Age
  • The tenure for the Verizon Communications board of directors is about average.
Board of Directors

Hans Vestberg

TITLE
CEO & Director
COMPENSATION
$10M
AGE
53
TENURE
0.5 yrs

Richard Carrión

TITLE
Director
COMPENSATION
$331K
AGE
66
TENURE
21.9 yrs

Lowell McAdam

TITLE
Executive Chairman & Executive Officer
COMPENSATION
$18M
AGE
63
TENURE
6.9 yrs

Clarence Otis

TITLE
Director
COMPENSATION
$356K
AGE
62
TENURE
12.9 yrs

Shellye Archambeau

TITLE
Director
COMPENSATION
$315K
AGE
55
TENURE
5 yrs

Greg Weaver

TITLE
Director
COMPENSATION
$340K
AGE
66
TENURE
3.3 yrs

Fran Keeth

TITLE
Lead Director
COMPENSATION
$354K
AGE
71

Rodney Slater

TITLE
Director
COMPENSATION
$306K
AGE
63
TENURE
8.8 yrs

Melanie Healey

TITLE
Director
COMPENSATION
$311K
AGE
57
TENURE
7 yrs

Kathee Tesija

TITLE
Director
COMPENSATION
$320K
AGE
55
TENURE
6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Verizon Communications's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Verizon Communications has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Is Verizon Communications Inc (NYSE:VZ) Potentially Underrated?

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Verizon Communications Inc (NYSE:VZ) due to its excellent fundamentals in more than one area.

Simply Wall St -

Is Verizon Communications Inc's (NYSE:VZ) ROE Of 59% Sustainable?

We'll use ROE to examine Verizon Communications Inc (NYSE:VZ), by way of a worked example. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.59 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does Verizon Communications Inc's (NYSE:VZ) PE Ratio Signal A Buying Opportunity?

This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Check out our latest analysis for Verizon Communications

Simply Wall St -

Should You Be Concerned About Verizon Communications Inc's (NYSE:VZ) Shareholders?

I am going to take a deep dive into Verizon Communications Inc’s (NYSE:VZ) most recent ownership structure, not a frequent subject of discussion among individual investors. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.

Simply Wall St -

Why Verizon Communications Inc (NYSE:VZ) Is A Dividend Rockstar

There is a lot to be liked about Verizon Communications Inc (NYSE:VZ) as an income stock, over the past 10 years it has returned an average of 5.00% per year. … The company currently pays out a dividend yield of 4.65% to shareholders, making it a relatively attractive dividend stock. … Does Verizon Communications tick all the boxes of a great dividend stock?

Simply Wall St -

Interested In Verizon Communications Inc (NYSE:VZ)? Here's How It Performed Recently

When Verizon Communications Inc (NYSE:VZ) released its most recent earnings update (31 March 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Verizon Communications's average earnings over the past couple of years, and its industry performance. … VZ's trailing twelve-month earnings (from 31 March 2018) of US$31.20b has

Simply Wall St -

Verizon Communications Inc (NYSE:VZ): Ex-Dividend Is In 2 Days, Should You Buy?

Verizon Communications Inc (NYSE:VZ) will be distributing its dividend of US$0.59 per share on the 01 August 2018, and will start trading ex-dividend in 2 days time on the 09 July 2018. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Verizon Communications's latest financial data to analyse its dividend characteristics. … consistent, reliable and competitive dividend over a long period of time, and is expected to continue to pay in the same manner many years to come

Simply Wall St -

Investors Are Undervaluing Verizon Communications Inc (NYSE:VZ) By 41.93%

Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Should You Buy Verizon Communications Inc (NYSE:VZ) Based On These Aspects?

Verizon Communications Inc (NYSE:VZ) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of VZ, it

Simply Wall St -

Why Income Investors Should Have Verizon Communications Inc (NYSE:VZ) In Their Portfolio

Over the past 10 years Verizon Communications Inc (NYSE:VZ) has grown its dividend payouts from $1.72 to $2.36. … With a market cap of US$203.21b, Verizon Communications pays out 30.77% of its earnings, leading to a 4.80% yield. … It consistently pays out dividend without missing a payment or significantly cutting payout

Simply Wall St -

Company Info

Map
Description

Verizon Communications Inc., through its subsidiaries, offers communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. The company's Wireless segment provides wireless voice and data services; Internet access on various notebook computers and tablets; multimedia, business-focused, and location-based services, as well as international travel services; and network access services to deliver various Internet of Things products and services. This segment also provides wireless devices, including smartphones and basic phones, wearables, and tablets and other Internet access devices. As of December 31, 2017, it had 116.3 million retail connections. Its Wireline segment offers traditional circuit-based network products and services; networking solutions, comprising private Internet protocol (IP), Ethernet, and software-defined wide area network, as well as cyber security services; local exchange, regional, long distance, and toll-free calling services; voice messaging and conferencing services; and workforce productivity and customer contact center solutions, as well as residential fixed connectivity solutions, including Internet, TV, and voice services under the Fios brand name. This segment also provides premises equipment, as well as installation, maintenance, and site services; data, voice, local dial tone, and broadband services primarily to local, long distance, and wireless carriers; voice and networking products, Fios services, IP networking, voice solutions, security, and managed information technology services for small and medium businesses, state and local governments, and educational institutions; and security and managed network services. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was founded in 1983 and is headquartered in New York, New York.

Details
Name: Verizon Communications Inc.
VZ
Exchange: NYSE
Founded: 1983
$235,855,421,965
4,132,015,101
Website: http://www.verizon.com
Address: Verizon Communications Inc.
1095 Avenue of the Americas,
New York,
New York, 10036,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE VZ Common Stock New York Stock Exchange US USD 21. Nov 1983
DB BAC Common Stock Deutsche Boerse AG DE EUR 21. Nov 1983
XTRA BAC Common Stock XETRA Trading Platform DE EUR 21. Nov 1983
LSE 0Q1S Common Stock London Stock Exchange GB USD 21. Nov 1983
SWX VZ Common Stock SIX Swiss Exchange CH CHF 21. Nov 1983
WBAG VZ Common Stock Wiener Boerse AG AT EUR 21. Nov 1983
SNSE VZ Common Stock Santiago Stock Exchange CL USD 21. Nov 1983
BMV VZ * Common Stock Bolsa Mexicana de Valores MX MXN 21. Nov 1983
BVL VZ Common Stock Bolsa de Valores de Lima PE USD 21. Nov 1983
NYSE VZA SR NT 5.9%54 New York Stock Exchange US USD 04. Feb 2014
BOVESPA VERZ34 BDR EACH REPR 1 COM SHS Bolsa de Valores de Sao Paulo BR BRL 23. Aug 2012
BASE VZ CEDEAR EACH REPR 1/2 COM USD0.10 Buenos Aires Stock Exchange AR ARS 15. Feb 2011
Number of employees
Current staff
Staff numbers
152,300
Verizon Communications employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/17 23:44
End of day share price update: 2018/12/17 00:00
Last estimates confirmation: 2018/12/16
Last earnings filing: 2018/10/30
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.