1 Huge Reason Verizon Should Slash Its Dividend Now

By Travis Hoium – May 1, 2024 at 5:30AM

NYSE: VZ

Verizon Communications

Market Cap

$169B

Today's Change

(-0.47%) -$0.19

Current Price

$40.06

Price as of May 17, 2024, 4:00 p.m. ET

3M has shown that cutting the dividend may not be a bad idea.

Verizon (VZ -0.47%) is spending most of its free cash flow just keeping up with dividend payments, which isn't sustainable as interest rates rise. But investors may not be as tied to that dividend today, which Travis Hoium covers in this video.

*Stock prices used were end-of-day prices of April 30, 2024. The video was published on April 30, 2024.

Travis Hoium has positions in Verizon Communications. The Motley Fool recommends 3M and Verizon Communications. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.