Better Passive Income Stock: Verizon vs. AT&T

Telecom Sector Overview - Verizon Communications and AT&T are solid stocks for income-seeking investors [3] - The telecom sector offers passive income opportunities through dividends [13] Verizon Communications - Verizon is acquiring Frontier Communications to enhance service bundling [4] - Verizon's gross margin increased from 56.6% to 61.5% over the last year [7] - Net debt reduced from $133 billion to$128 billion [7] - Verizon's stock is up 5% year-to-date with a 6.8% dividend yield [14] - A $50,000 investment in Verizon generates$3,400 in annual dividend income [17] AT&T - AT&T's stock increased by 36% year-to-date in 2024 [15] - AT&T offers a 4.8% dividend yield [8] - A 50,000 investment in AT&T generates 2,400 in annual dividend income [12] - AT&T's total return in 2024 is around 45%, significantly higher than Verizon's [15] Comparative Analysis - Verizon's dividend yield is 6.8%, compared to AT&T's 4.8% [8][17] - AT&T's total return in 2024 is more than three times that of Verizon [12][15] - Investors prioritizing total returns may prefer AT&T over Verizon [16]