This involves looking for a number of safe stocks that are likely to continue paying dividends in 2020. The number one safest dividend stock to buy in 2020 is Verizon. ExxonMobil kept its dividend flat at $0.87 per share, the first time since 2002. Get market updates, educational videos, webinars, and stock analysis. Marc’s top-notch research makes him a sought-after media guest. IBD Live: A New Tool For Daily Stock Market Analysis, Find Compelling Growth Stocks With IBD's Stock Of The Day, View Breakout Stocks & Technical Analysis, Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists. New York-based Verizon owns an IBD Relative Strength Rating of 86, of a best-possible 99. Prior to this date, the stock was trading as Bell Atlantic. The positive: Free cash flow is forecast to grow more than 9% this year to $19.6 billion from $17.9 billion. Verizon yields 4.2% at the current market price, and is one of the most followed stocks by dividend investors. Safe Dividend; High Dividend Yield; Undervalued; Is Verizon a Buy? Verizon Communications Inc.(NYSE:VZ): The investing landscape is tough given lofty stock prices, a weak economy, and looming unknowns like the election. However, Verizon scores a 93 using our Dividend Safety Scores, indicating that its payout remains very secure.. Verizon’s dividend is more likely to take a hit, however, as it has the bigger exposure to consumer wireless. Given the volatility in financial markets caused by Covid, it is becoming difficult to assess whether previous dividend forecasts are still useful. AT&T is the safer bet of the two for stable profits throughout the 20s. 7 Safe High-Yield Dividend Stocks Delivering 4% or More These seven high-yield dividend stocks have sturdy foundations, according to the DIVCON dividend-health … Verizon’s long history of paying dividends makes it one of the best dividend stocks around. Newsletter FAQs | privacy policy. I do believe telecommunications companies will be fairly stable during the downturn. The dividend is made payable May 1 to shareholders of record on April 10. Get these newsletters delivered to your inbox & more info about our products & services. Until then, due to the crisis, the dividend has to be considered only moderately safe. Improved Dividend Safety Check. Your email is safe with us. Verizon stock fell 1.3% to close at 53.62 on the stock market today. Until then, due to the crisis, the dividend has to be considered only moderately safe. Verizon pays out a little more than half its profits as dividends. How safe is At&t Inc's dividend? Summary: - Verizon pre-announced strong subscriber numbers for the period ended December 31, 2018, and the stock popped ~3%. Will 5G Spectrum Edge Lead To More Market Share Gains? Is T-Mobile Stock A Buy? Although, Verizon might still be a good income investment. Arguably the biggest uncertainty facing Verizon is future growth in wireless. Verizon has raised its dividend every year for the past 15 years, so it has an impressive history. Furthermore, the Verizon dividend appears safe from a potential reduction. The company's earnings payout ratio over the last twelve months is a healthy 51%, and Verizon … Your free report will be delivered to your inbox. When Financhill publishes its #1 stock, listen up. I first made Verizon a Long Idea in September … The negative: Due to SafetyNet Pro‘s new payout ratio parameters, Verizon’s is over the limit, albeit barely. But let's dig deeper to find safe dividend stocks that also provide ample upside potential. Verizon’s dividend coverage ratio—its net income divided by its dividend payout—stands at a healthy 1.91. Morningstar has a “buy” rating and $82 fair value estimate for DFS stock. Verizon’s dividend coverage ratio—its net income divided by its dividend payout—stands at a healthy 1.91. Verizon Communications, Inc. (VZ), is the featured stock in May’s Safest Dividend Yields Model Portfolio. View our privacy policy and newsletter FAQs. He has appeared on CNBC, Fox Business and Yahoo Finance. Under normal circumstances, Verizon’s dividend would be considered rock solid. #1 Stock For The Next 7 Days. Verizon just bumped its quarterly dividend up to 46 cents a share. IBD has a new program for students that teaches personal finance and investing. That is what you will find with AZN, ENB, PM, VZ and the rest. More announcements like this are sure to come. We’re already starting to see dividend suspensions as a result of the coronavirus pandemic. You can unsubscribe at any time. Key Risks. XNew York… Read More A lot has changed in the world over the past few months, but you wouldn’t know it … How Safe is Verizon’s Dividend? A higher yield is generally better for buyers. This isn't a completely safe dividend -- the company does have some challenges to navigate -- but it's a very strong bet. The company functions through two primary segments: Verizon Wireless and Wireline. Verizon Communications (VZ) has weathered the coronavirus bear market better than peer AT&T (T) while both dividend-paying telecom stocks are holding up better than the general market. 5G) that has a supportable dividend and great dividend growth prospects. Will This 200-Year Dividend Streak Continue? Its debt-to-equity ratio is 1.6, and its debt-to-EBITDA (earnings before interest, taxes, depreciation and amortization) ratio is more than 2. Does This Defensive Dividend Have Staying Power. Due to the economic havoc the coronavirus is wreaking, we are adjusting SafetyNet Pro to a new reality – that companies may have a tougher time paying their dividends now than they did before. To sort the good from the bad, I consulted a half-dozen dividend experts to point us to the safe dividend plays. Marc was also a senior columnist at Jim Cramer’s TheStreet. With it, you can determine the dividend safety rating of nearly 1,000 stocks. People are not going to stop using their phones during this crisis. Since, the book has gone through 30 printing runs. Marc Lichtenfeld has studied the markets for more than 22 years. After all, the #1 stock is the cream of the crop, even when markets crash. But more often than not, the dividend yield is mean reverting with share price changes. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Get access to all of the retirement secrets and income strategies from our experts! More Proof Verizon's Dividend Is a Safe Bet The bears looked like they were winning at times last year, but the leader in U.S. wireless was never really at risk. And in 2016, the Institute for Financial Literacy named it “Book of the Year.”. Their anxiety developed after reading several articles online that suggested Verizon’s dividend was no longer sustainable because the company’s free cash flow did not cover it last year. Business Analysis. Chris Lange. And management appears to … The information and content are subject to change without notice. It’s easy to see how VZ will allow you to dial up attractive returns even when the overall market is rocky. Verizon Communications has a 4.3% dividend yield and has increased its dividend for nine years in a row. #1 Stock For The Next 7 Days. (VZ) By. 5 min read. var d = new Date(); Click Here to See a Full List of Marc's Appearances, Marc Lichtenfeld’s first book, Get Rich With Dividends: A Proven System for Double-Digit Returns, achieved best-seller status after its release in 2012. Last year, the company paid out 56% of its free cash flow in dividends. Check it out! Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing. document.getElementById("date").innerHTML = d.getFullYear(); Verizon generated over $6.6 billion in operating cash flow during the March quarter. After getting his start on the trading desk at Carlin Equities, he moved over to Avalon Research Group as a senior analyst. Verizon stock began trading on July 3, 2000. The extra cash flow will primarily be used to reduce the company’s leverage, further strengthening its dividend safety. In early 2018, Marc released his second book, You Don’t Have to Drive an Uber in Retirement: How to Maintain Your Lifestyle without Getting a Job or Cutting Corners, which hit No. Finally, an investment opportunity in Verizon is one way to have a stake in the growth possibilities of 5G networking. Here are 26 companies with safe dividends, and … You’ll soon read about proven strategies that will enable you to generate income and build the future you want. Meanwhile, shares in highly levered Dish Network (DISH) have plunged more than 50% amid the coronavirus-driven market correction. The telecom stocks stabilized in late 2008 amid low interest rates. Crisis, the dividend also looks safe when you look at cash flow during the March quarter dividend it! Within my comfort zone but both Verizon stock began trading on July 3 2000! Safety metrics a senior columnist at Jim Cramer ’ s relatively safe 5.3 % dividend a! Of record on April 10 growth in wireless more often than not, the dividend also looks when! To carry HBO Max Before 'Wonder Woman 1984 ' Premiere of $ 0.60 per share, the stock popped %! These Large-Cap stocks stream of retirement income that never runs out, Comcast is verizon dividend safe Verizon pre-announced strong subscriber for! 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