Verizon and AT&T are two Telecommunications GIANTS we're all familiar with. They give us the daily connectivity we need to communicate, shop, learn, work, trade, and be entertained. But that's not all. They regularly pay a portion of their quarterly earnings to investors (aka shareholders) in the form of Dividends.
In other words, you will be rewarded for investing in their company - so long as you own shares before the declared Ex-Dividend Date every three months. In the case of Verizon and AT&T, that means before tomorrow. Here's how it works.
Verizon pays 61.5 cents per share owned prior to the Ex-dividend Date, tomorrow (7-9-2020). So for every 100 shares you own of Verizon, the company will pay you $61.50 every quarter. Assuming the company's board maintains the same (or a higher) Dividend Payout over the next 12 months, you'll receive more than $240 each year for every 100 shares owned - irregardless of typical share price fluctuations.
Take that $240 in Dividends, divided by $5,545 (Currently at $55.45 per share, multiplied by 100 shares), and you have a 4.32% Dividend Yield (return) each year. This sure beats the bank's current Branch or Online Savings account rates of 0.01% to around 1% after one whole year, respectively - albeit one's basis is guaranteed with one and not the other.
There are many important considerations with Dividend Investing to be discussed in a subsequent post. Suffice it to say, Dividends are very popular among those looking for cash flow and wanting to retire, or wanting to roll Dividend payments into the purchase of more shares over the long-haul. And it could start now with a quick investment in Verizon or AT&T.
Stay tuned for a comprehensive discussion on Dividend Investing.
Disclaimer: This post represents my own opinion and is not a substitute for professional investment advice. It does not represent a solicitation to buy or sell any security. Investors should conduct their own due diligence and consult their tax and financial advisors before making any investment.
Disclosure: I currently hold a position in: VZ, T, with the intention of going Long, and Intermediate - Long, respectively.
I wrote this post myself, and it expresses my own opinions while sometimes quoting others. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.