2022 Week 49: Verizon Communications (NYSE: VZ)

Portfolio Update

The FiveTwenty portfolio received $382.93 in dividends in the past week. AFL, BKH, ENB, FTS, INTC, SJM, and SWX paid their quarterly dividends during the week.

Past Week Dividend$382.93
Current Quarter Dividend (Q4 2022)$1,040.45
LifeTime Dividend$7,335.73
Estimated Annual Dividend$7,345.59
Dividend Scorecard

The capital allocation for the week of 12/04/2022 to 12/10/2022 will be used to add to our position in Verizon Communications (NYSE: VZ)

VZ – Position Update

Since our last check-in on VZ in week 31 of 2022, the company reported Q3 2022 earnings on 10/21/2022. Furthermore, the share price decreased 17.3% from $46.19 to $38.18.

TTMPrev. Update10-year median
Dividend Streak18 years17 years
Payout Ratio48.63%147.58%2
Entry Criteria Scorecard

1 computed using TTM adjusted EPS of $5.28 as of Q3 2022
2 computed using TTM adjusted EPS of $5.38 as of Q2 2022

Q3 2022 earnings report

Did VZ’s latest earnings report raise any warning flags?

For Q3 2022, VZ reported revenue growth of 4% year over year, while net income and adjusted EPS decreased compared to the year ago quarter. The revenue growth was powered by a 10% increase in wireless services revenue. The company also saw 8000 postpaid phone and 377,000 broadband net additions in the quarter.

Overall, revenue grew 4%, net income decreased 23.3%, and adjusted EPS were 7% lower than in Q3 2021.

(in millions)
Net Income
(in millions)
Adj. EPS
Q3 2021$32,915$6,554$1.42
Q3 2022$34,241$5,024$1.32
% Change4%(23.3)%(7)%

Additional noteworthy developments during the quarter:

  • VZ started a new cost savings program that is expected to reduce annual costs by between $2 billion and $3 billion by 2025.
  • The company’s unsecured debt as of the end of Q3 decreased by $1.1 billion sequentially to $131.4 billion.

Looking ahead, VZ reiterated is forecast of wireless service revenue growth of 8.3% to 9.5% and adjusted EPS of $5.10 to $5.25.


Why are we adding to our position in VZ?

We believe that VZ will continue to be a source of reliable dividends in the future. Therefore, we view the current share price as an opportunity to build our position at a very attractive yield and valuation.

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