AT&T (NYSE:T) is a dividend stalwart, yielding 5.7%, but Morningstar DividendInvestor Editor Josh Peters dropped it from his model portfolio in favor of lower-yielding Verizon (NYSE:VZ).
He's willing to swap for Verizon's 4.5% yield because the "quality, the safety of the dividend, and the growth of the dividend and the total return it will drive are superior."
He lost some patience with AT&T's wandering outside of core business rather than sticking to its knitting and growing the dividend faster than 2%. Verizon is focused on U.S. wireless with better capital allocation, he says.
Coverage plays a part as well: "Verizon is covering its dividend 1.5 times with free cash flow. AT&T is just barely covering its dividend now with free cash."
Verizon Communications (VZ) declares $0.53/share quarterly dividend, 2.9% increase from prior dividend of $0.515.
Forward yield 4.47%
Payable Nov. 1; for shareholders of record Oct. 10; ex-div Oct. 8.
Sep. 2, 2013, 11:14 PM|1 Comment
Jun. 6, 2013, 12:40 PM
Verizon Communications (VZ) declares $0.515/share quarterly dividend, in line with previous. Forward yield 4.19 %. For shareholders of record July 10. Payable August 1.Ex-div date July 8 (PR) Jun. 6, 2013, 12:40 PM|1 Comment