Monday September 19, 2011
by Vita Nelson, editor MoneyPaperVerizon Communications (
VZ) is our latest featured stock special of the month, chosen from issues offering dividend reinvestment plans.
Verizon is one of the nation's largest telecommunications firms, with more than 290 million access lines and wireless customers.
The company began as Bell Atlantic with the 1984 breakup of the original AT&T and merged with GTE in 2000, also absorbing fellow 'Baby Bell' NYNEX, as well as Alltel and MCI Communications.
Verizon has annual revenues of about $110 billion, half of which comes from its wireline operations in 28 states and half from wireless operations in all 50 states.
After earning $2.21 per share in 2010, earnings per share are expected to be about $2.24 this year and $2.60 in 2012.
The dividend has been increased for eight straight years and the $2.00-per-share annual payout results in a yield of 5.6%.
Note: Although the DRIP charges a $1-2 fee on reinvestment, participants can elect to receive the payout in cash (or direct deposit) and make no-fee investments by check or automatic debit.
Learn more about this financial newsletter at Vita Nelson's MoneyPaper.
