Verizon Communications Inc.

Communication Services

$47.13

5.87%Overvalued

Verizon Communications Inc. (VZ) is a Communication Services company that currently yields 5.87% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $33.25 and the overvaluation threshold at $48.29. Verizon Communications Inc. holds a quality score of 47/100 (Average), reflecting 9 consecutive years of dividend growth with a 67% payout ratio. The 5-year dividend CAGR stands at 2.0%.

VZ Dividend Yield History — Weiss Valuation

Underval. $33.25Overval. $48.29

Price

Undervalued band

Overvalued band

Why Now?

Verizon Communications Inc. is trading near its historical overvaluation band.

Current yield 5.9% vs historical max 8.3% (71% of maximum).

9 years of uninterrupted dividends.

Reasonable payout ratio of 67%.

Dividend Compounder (DRIP)

Initial Investment

Horizon (years)

Div. CAGR (%)

Year 1 Income

$599

Year 10 Income

$1,260

Yield on Cost

13.5%

Total Income

$8,868

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Quality Score

Average

Payout Ratio12/25

Dividend Streak12/25

Growth (CAGR 5Y)3/20

Yield vs History10/15

FCF Coverage10/15

Key Metrics

Current Price$47.13

Annual Dividend$2.77

Current Yield5.87%

Yield — Max (10Y)8.32%

Yield — Min (10Y)5.73%

Undervalued Below$33.25

Overvalued Above$48.29

Payout Ratio67.44%

CAGR Dividend 5Y2.0%

CAGR Dividend 10Y—

Years No Cut9y

consecutive years of dividend growth

In-depth analysis

→ VZ Dividend Analysis Article