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|
|Estimated Annual Dividend||$7,345.59|
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.
|TTM||Prev. Update||10-year median|
|Dividend Streak||18 years||17 years|
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.
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.
- 2022 Week 31: Verizon Communications (NYSE: VZ)
- 2021 Week 43: Verizon Communications (NYSE: VZ)
- 2021 Week 34: Verizon Communications (NYSE: VZ)
- 2021 Week 28: Verizon Communications (NYSE: VZ)
Photo by Leon Bredella on Unsplash