Investing in stocks can be a great way to generate passive income, and one company that offers a solid dividend yield is Verizon Communications Inc. (NYSE: VZ). With a diverse range of products and services in the communications, technology, information, and entertainment sectors, Verizon has established itself as a leader in the industry.
Verizon is set to report its Q4 2024 earnings on Jan. 24, 2025, and analysts are expecting the company to post an EPS of $1.17, up from $1.08 in the previous year. Quarterly revenue is projected to be $33.73 billion, slightly lower than the $35.13 billion reported in the same period last year. Despite this, Verizon remains a strong player in the market with a 52-week stock price range of $36.46 to $45.36.
One of the key attractions of investing in Verizon is its impressive dividend yield of 6.11%. Over the last 12 months, the company has paid out $2.71 per share in dividends, making it an attractive option for income-seeking investors. To earn $100 per month – or $1,200 annually – from Verizon dividends, an investment value of approximately $19,640 is needed, which equates to 443 shares at $44.37 each.
Calculating the dividend yield is essential for understanding how much income can be generated from an investment. By dividing the annual dividend payments by the stock’s current price, investors can determine the percentage yield and make informed decisions about their investment strategy.
In its Q3 2024 earnings report, Verizon posted sales of $33.33 billion, slightly below analyst estimates. However, the company’s adjusted EPS of $1.19 exceeded expectations, driven by growth in wireless service revenue and fixed wireless connections. Verizon reiterated its full-year outlook for wireless service revenue growth and adjusted EPS, maintaining a strong position in the market.
Overall, investing in Verizon stock can provide investors with a reliable source of passive income through dividends. With a solid dividend yield and a track record of consistent performance, Verizon is a compelling option for those looking to build a diversified investment portfolio. By understanding the company’s financials, dividend yield calculations, and market outlook, investors can make informed decisions to earn $100 in passive income through investing in Verizon stock.
