Verizon (NYSE:VZ) has been a powerhouse dividend name although we prefer competitor AT&T (NYSE:T). We just learned that the company not only declared a dividend, which was expected, but also set a new share repurchase program. Here are the details:
- Declared a $0.5775/share quarterly dividend, in line with previous.
- Forward yield is 4.63% based on current share price of $50.09
- The dividend is payable May 1 for shareholders of record April 10. The ex-dividend data is April 6.
- In addition, Board authorized the corporation to repurchase up to 100M shares of its common stock.
A share repurchase program will help increase earnings per share and has the potential to boost dividends in the long run. A share repurchase program also helps keep buying strong, protecting share prices. We view this as positive news.