Looking at Verizon’s cash flows, I honestly don’t think they can sustain their fat dividend much longer. Servicing the $140B in debt (I mean what genius thought levering up to that degree was smart) is going to cost a LOT more as bonds roll over at these much higher interest rates. Wireless just isn’t providing the growth it used to and that was the lipstick prettying up the pig. 5G is a disaster. All of the debt taken on to acquire mm spectrum that is proving to have been oversold, all of the debt to roll out 5G infrastructure, and basically no new revenues to show for it. Operating cash flows aren’t going to cover debt servicing, capex needs plus the dividend much longer. I give it 9-12 months before it is severely reduced or eliminated. At that point, a $38 stock price will look like the good old days.
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It WILL happen at this rate. You don’t borrow money to pay a 6.5% dividend,. Cash flow separates wishes from reality. Go read a cash flow statement and report back
Never, ever gonna happen. That would spell the demise of VZ.
If there is a dividend cut, it will align with the Sweed being shown the door. Don't feel bad for the loser, he gets a $40 million golden parachute.