Verizon Is Cutting 3,000 Jobs and Handing 274 Stores to Franchisees Right Before July 24 Earnings. Is the 6.5% Dividend Still Safe?
Yahoo Finance ·
Verizon ( VZ +0.54% ) spent last week doing what it has done all year under CEO Dan Schulman: getting smaller. The telecom giant said it will sell 274 company-owned retail stores to franchise operators and cut about 500 corporate positions, moves that affect roughly 3,000 employees in total. The changes take effect in mid-August and come on top of the more than 13,000 job cuts Verizon announced in November. Headlines like these can spook income investors. But does it make sense to be fearful? At the stock's current price near $44, shares yield about 6.5% -- one of the largest payouts among major U.S. companies. So, with second-quarter earnings due Friday morning, July 24, is a dividend this big still safe at a company this focused on cutting? I believe it is. If anything, the restructuring is part of why.
AI 시장 분석
Under the leadership of CEO Dan Schulman, Verizon is accelerating downsizing by cutting 3,000 jobs and converting 274 corporate-owned stores into franchises. The stock is trading around $44 with a high dividend yield of about 6.5%, and attention is focused on how the restructuring will impact dividend stability ahead of the Q2 earnings release on July 24. Experts evaluate that these high-intensity cost-cutting measures will instead strengthen financial health and serve as a core driver for defending the high dividend.
상승 영향
- Telecommunications — Large-scale restructuring and cost reduction are expected to secure the stability of the 6.5% high dividend and improve free cash flow.
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