Verizon Communications(Nyse: vz) Known for many things. High speed internet. An extensive network. Reliable coverage. But if you are an investor, the main thing you think is when Verizon is mentioned is the company’s profits.
Because of the very high profits, Verizon is popular with income investors. You may be surprised by the amount of income that can be generated by a stake that is not available in this wireless and wireless stocks. Here are the number of shares of Verizon Communications that you must own to receive $ 5,000 of annual profits income.
Photo source: Verizon Communications.
Verizon currently pays the distribution of a quarterly profit of $ 0.6775 per share. This translates into $ 2.71 in the annual profit payments for each Verizon share.
Now, let’s specify the number of shares you need to own to receive $ 5,000 in annual profits income. Mathematics clear. All we need to do is divide $ 5,000 by $ 2.71 per share. This gives us the result of 1,845,018 shares.
If we offer this number and buy 1,845 shares of Verizon, your annual income will be less than $ 5,000. If you collect and buy 1,846 shares, your annual income will be $ 5,002.66. If you want to get exactly $ 5,000, you will need to use it Broken stocks (Although I doubt that many investors are interested in being accurate).
Regardless of the exact number of the shares you buy, you will need a large investment in advance. To make on the field worth $ 5,000 of annual profits income, you will have to buy about $ 81,000 of shares.
However, it is important to note that the number of Verizon shares you need to own to receive $ 5,000 of annual profit income may be a moving goal. The basic variable is the semester payment amount in Verizon.
Verizon has increased its profits for 18 consecutive years. The giant telecommunications company announced the latest distribution of its profits in September 2024. If you raise the payment of profits again later this year, you will not have to have many shares to achieve $ 5,000 of annual income.
How possible is for Verizon to maintain profit distributions? I think the opportunities are very good. Verizon The percentage of profit distribution It is currently 64.23 %. This level gives the company a great flexibility to enhance its profits within a few months if the Board of Directors chooses to do so.
Verizon’s free cash flow also indicates a strong position to increase profits. The company produced a free cash flow of $ 3.6 billion in the first quarter of 2025, a large jump of $ 2.7 billion in the previous year period. It expects to provide a free cash flow between 17.5 billion dollars and 18.5 billion dollars for a period of 2025.
Hans Vestberg CEO has inserted priorities to allocate capital in Verizon in the collective call of profits in the first quarter in April 2025. What was the second? Vestberg said Verizon plans to “support and develop our profits.”
The profit distributions are not the only thing that makes Verizon attractive to investors. The stock was a strong winner this year, as nearly 10 % rose while the main market indicators decreased.
One excessive for Vezon is that her work should stand relatively well under the high definitions of the Trump administration. Festmberg noticed the Call of the Q1 “a very small part” of the expected capital expenses of the company exposed to definitions. He added: “We are a company based in the United States, we are investing in the American fiber centered around the United States. All we do with employment, the product depends on fiber.”
Vestirg acknowledged that the customs tariff can cause the phone’s prices to increase. However, he said Verizon does not plan to absorb higher costs.
Meanwhile, Verizon’s works flourish. The revenue of the leading wireless services in the industry was born in the first quarter. The company expanded its share in the wide range market. Verizon growth in the non -far -long future can accelerate with suspended acquisition Border communications.
It should make you buy 1,845 or 1846 shares of Verizon approximately $ 5,000 during the next year. However, you can earn more money if the stock prices increase – which I think is likely.
Before buying shares at Verizon Communications, think about this:
the Motley Adviser is a lie The analyst’s team has just identified what they think 10 best stocks For investors to buy now … Verizon Communications was not one of them. The ten shares that made the pieces can produce monster revenues in the coming years.
Look at whenNetflixThis list was submitted on December 17, 2004 … if you invest $ 1,000 at the time of our recommendation,You will have 617,181 dollars! Or when NafidiaThis list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation,You will have 719371 dollars!
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