Comparing Dividend-Providing Stocks: Verizon versus American Express
Investors seeking high dividend yields might find themselves comparing two industry giants: Verizon and American Express. Let's delve into the factors that make these companies stand out in the dividend landscape.
Current Dividend Yield
As of now, Verizon's dividend yield is around 6%, ranging from 5.9% to 6.11% depending on the source [1][2][3]. On the other hand, American Express's dividend yield remains elusive in the search results, but historically, it has been lower compared to Verizon, often around 1% to 2%.
Historical Dividend Growth
Verizon has shown a consistent track record of dividend growth, increasing its dividend for 18 consecutive years [1][3]. This trend is expected to continue, given Verizon's strong financial position and projected future growth in the telecom sector, including advancements like 6G networks.
American Express, while offering growth potential, typically relies more on share price appreciation for overall returns.
Growth Prospects
Verizon is well-positioned for long-term growth, with the potential for significant advancements in wireless technology like 6G by 2030 [1]. American Express, with its strong brand and growth potential in the financial services sector, may not offer the same appeal for income-focused investors in terms of dividend yield.
Conclusion
Based on the available information, Verizon is expected to deliver a higher yield on cost for investors starting a position now over the next 20 years. This is due to its higher initial dividend yield and consistent history of dividend growth. American Express, while offering stable dividends, typically has a lower dividend yield and relies more on share appreciation for returns. Therefore, for investors seeking higher dividend income, Verizon appears as a more attractive option.
It's important to note that American Express recently announced the launch of the Coinbase One Card on the American Express network, a move that positions the company in the shifting cryptocurrency landscape [4].
In terms of financials, Verizon's free cash flow is expected to reach $4.74 per share in 2025 at the midpoint of management's guided range [5]. At recent prices, shares of Verizon offer an attractive 6.3% dividend yield [6]. In contrast, American Express, with its lower yield, may not be as appealing to income-seeking investors at the moment.
In summary, for those investors who prioritize dividend income, Verizon, with its high yield and consistent growth, appears to be a better choice compared to American Express. However, investors should always conduct their own research and consider their individual investment goals and risk tolerance before making decisions.
- Verizon's 6G ambitions
- Verizon's dividend yield
- Verizon's 18th consecutive dividend increase
- American Express and Coinbase partnership
- Verizon's free cash flow forecast
- Verizon's current dividend yield
- In the realm of technology, Verizon's 6G ambitions position it for significant advancements by 2030, potentially driving long-term growth.
- Verizon's current dividend yield stands at around 6%, making it an attractive option for investors seeking high dividend income.
- Verizon has shown a consistent track record of dividend growth, with 18 consecutive years of dividend increases.
- American Express recently announced a partnership with Coinbase, entering the shifting cryptocurrency landscape and offering growth potential in the financial services sector.
- As per recent projections, Verizon's free cash flow is expected to reach $4.74 per share in 2025, supporting its high dividend yield.
- At the current market prices, shares of Verizon offer an attractive 6.3% dividend yield, an aspect that appeals to income-seeking investors compared to American Express's lower yield.
