AT&T and Verizon are the two big US telecoms with high yields. Compare the businesses, AT&T's 2022 dividend cut and what to check on debt.
AT&T and Verizon are two of the biggest telecom companies in the United States, and both are popular with income investors because of their above-average yields. They are mature, capital-hungry businesses with a lot of debt.
The key difference in recent years is dividend history: AT&T reduced its dividend in 2022, while Verizon has kept raising its own in small steps.
AT&T Inc.
T
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Verizon Communications Inc.
VZ
|
|
|---|---|---|
| Exchange | NYSE | NYSE |
| Sector | Communication Services | Communication Services |
| Industry | Telecommunications | Telecommunications |
| Founded | 1983 (as Southwestern Bell) | 1983 (as Bell Atlantic) |
| Headquarters | Dallas, Texas, USA | New York City, New York, USA |
| Regular dividend | Yes | Yes |
| Dividend lists | — | — |
| Full profile | Read the profile → | Read the profile → |
AT&T cut its dividend in 2022 when it separated its media business. Verizon has increased its dividend each year for close to two decades.
Both sell wireless service and broadband. AT&T has put a stronger focus on fibre, while Verizon has built its reputation on network quality.
AT&T spent years as a media conglomerate before refocusing on connectivity. Verizon has stayed a telecom.
High debt, heavy capital spending on networks and spectrum, and intense competition.
AT&T is in Dallas, Texas. Verizon is in New York City.
This is general education, not a recommendation. Fees, yields and prices change, so check current figures with the issuer or your broker.
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