Verizon Just Increased Its Dividend for the 18th Year in a Row. Will Its $20 Billion Acquisition Put That Streak in Jeopardy?

Verizon (NYSE: VZ) is one of the top dividend stocks in the S&P 500. The telecom giant's payout currently yields more than 6.5%. That puts it among the 10 highest yields in that broad market index, where the average is less than 1.5%. Further, the company recently increased its payout for the 18th straight year. That's the longest current streak in the U.S. telecom sector. A big factor driving Verizon's ability to continue increasing its dividend has been its improving free cash flow and leverage ratio. However, the company recently agreed to acquire Frontier Communications (NASDAQ: FYBR). While that deal will enhance its fiber network, the $20 billion all-cash acquisition will saddle it with a lot more debt. That increased leverage could impact the company's ability to continue growing its dividend.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool