Fintel reports that on January 4, 2024, Wolfe Research upgraded their outlook for Verizon Communications (NYSE:VZ) from Peer Perform to Outperform .
Analyst Price Forecast Suggests 4.44% Upside
As of December 16, 2023, the average one-year price target for Verizon Communications is 40.90. The forecasts range from a low of 31.31 to a high of $50.40. The average price target represents an increase of 4.44% from its latest reported closing price of 39.16.
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The projected annual revenue for Verizon Communications is 145,212MM, an increase of 8.29%. The projected annual non-GAAP EPS is 5.35.
Verizon Communications Declares $0.66 Dividend
On December 7, 2023 the company declared a regular quarterly dividend of $0.66 per share ($2.66 annualized). Shareholders of record as of January 10, 2024 will receive the payment on February 1, 2024. Previously, the company paid $0.66 per share.
At the current share price of $39.16 / share, the stock's dividend yield is 6.79%.
Looking back five years and taking a sample every week, the average dividend yield has been 5.17%, the lowest has been 4.01%, and the highest has been 8.51%. The standard deviation of yields is 1.27 (n=234).
The current dividend yield is 1.28 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.54. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.06%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 3789 funds or institutions reporting positions in Verizon Communications. This is a decrease of 122 owner(s) or 3.12% in the last quarter. Average portfolio weight of all funds dedicated to VZ is 0.51%, a decrease of 2.34%. Total shares owned by institutions decreased in the last three months by 0.67% to 2,773,575K shares. 
The put/call ratio of VZ is 0.73, indicating a bullish outlook.
What are Other Shareholders Doing?
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 117,777K shares representing 2.80% ownership of the company. In it's prior filing, the firm reported owning 118,037K shares, representing a decrease of 0.22%. The firm decreased its portfolio allocation in VZ by 9.74% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 101,020K shares representing 2.40% ownership of the company. In it's prior filing, the firm reported owning 100,095K shares, representing an increase of 0.92%. The firm decreased its portfolio allocation in VZ by 9.95% over the last quarter.
Charles Schwab Investment Management holds 98,028K shares representing 2.33% ownership of the company. In it's prior filing, the firm reported owning 93,500K shares, representing an increase of 4.62%. The firm decreased its portfolio allocation in VZ by 8.34% over the last quarter.
Geode Capital Management holds 84,478K shares representing 2.01% ownership of the company. In it's prior filing, the firm reported owning 82,372K shares, representing an increase of 2.49%. The firm decreased its portfolio allocation in VZ by 9.36% over the last quarter.
SCHD - Schwab U.S. Dividend Equity ETF holds 53,951K shares representing 1.28% ownership of the company. In it's prior filing, the firm reported owning 50,410K shares, representing an increase of 6.56%. The firm decreased its portfolio allocation in VZ by 4.81% over the last quarter.
Verizon Communications Background Information
(This description is provided by the company.)
Verizon is one of the largest communication technology companies in the world. Verizon Communications Inc. was formed on June 30, 2000 and is celebrating its 20th year as one of the world’s leading providers of technology, communications, information and entertainment products and services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $128.3 billion in 2020. The company offers voice, data and video services and solutions on its award winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control.
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