Goldman Sachs’ 5 Cheap Dividend Stocks

2. Verizon Communications Inc. (NYSE:VZ)

Dividend Yield as of November 4: 7.04%

Verizon Communications Inc. (NYSE:VZ) is a New York-based multinational telecommunications company that mainly provides wireless and broadband services to its consumers.

In Q3 2022, Verizon Communications Inc. (NYSE:VZ) recorded a fifth consecutive quarter of over 150,000 postpaid phone net additions. The company’s year-to-date operating cash flow came in at $28.2 billion and its free cash flow for the period stood at $12.4 billion.

Verizon Communications Inc. (NYSE:VZ) has been raising its dividend for the past 16 years due to strong cash flows. The company pays a quarterly dividend of $0.6525 per share for a dividend yield of 7.04%, as recorded on November 4. Goldman Sachs projects a 2% dividend growth for the company by 2024.

In October, Morgan Stanley maintained an Equal Weight rating on Verizon Communications Inc. (NYSE:VZ) with a $41 price target, highlighting the company’s postpaid phone sales.

Of the 895 elite funds tracked by Insider Monkey, 58 hedge funds had investments in Verizon Communications Inc. (NYSE:VZ) in Q2 2022, compared with 69 in the previous quarter. These investments are collectively valued at nearly $2.3 billion.

Mawer Investment Management mentioned Verizon Communications Inc. (NYSE:VZ) in its Q3 2022 investor letter. Here is what the firm has to say:

“There are a few other segments of our portfolios that displayed weakness in the quarter. Cable and telecommunication companies have been an area that has lagged the broader market as their worlds are increasingly colliding. Companies such as Verizon (NYSE:VZ) has been impacted as wireless operator is spending heavily to attract internet subscribers with fixed wired access and the cable companies are trying to build wireless businesses.”