Verizon Communications (VZ) will raise its quarterly dividend by 2.0 percent to $0.6275 per share in 2020, marking the 14th consecutive year of dividend increases by the provider of communications, information and entertainment products and services.

Last year Verizon hiked its quarterly dividend by 2.1 percent to $0.615 per share. The next quarterly dividend is payable on November 2, 2020, to Verizon shareholders of record at the close of business on October 9, 2020. A new annual rate of approximately $2.51 per share yields 4.2% at a stock price of $60.46.

In a press release dated September 3, 2020 Verizon announces the dividend hike and mentions that the company made approximately $5.1 billion in cash dividend payments in the first half of 2020. If we calculate the new annual dividend with approximately 4.1 billion shares of common stock outstanding we get to a new annual dividend payment of $10.4 billion to shareholders.

This puts Verizon on the 7th place of biggest US dividend payers, trailing only Microsoft (MSFT), AT&T (T), Exxon Mobil (XOM), Apple (AAPL), JPMorgan (JPM) and Johnson&Johnson (JNJ). Microsoft currently is the biggest dividend payer with an estimated annual dividend payment of $15.5 billion.

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Verizon has now hiked its dividend for 14 consecutive years compared to 36 consecutive years of dividend growth for biggest competitor, and Dividend Aristocrat, AT&T. The interesting thing is that both Verizon and AT&T have been announcing similar sized dividend hikes of approximately 2 percent annually for the last couple of years, with AT&T hiking its dividend by exactly 2.0 percent in 2019. However, despite the same growth rate and better dividend history, AT&T currently is yielding 7.0%. On the other hand AT&T, despite a smaller market cap, is paying far more in dividends every year with a $14.7 billion annual payment to shareholders versus $10.4 billion of cash flow going to shareholders every year for Verizon.

Verizon Communications Inc., through its subsidiaries, provides communications, information and entertainment products and services. The company offers data, video and voice services and solutions on its award winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control. There are two reportable segments that the company operates and manages as strategic business units: Consumer and Business. Verizon's brands include TechCrunch, HuffPost, Yahoo Sports, AOL.com, MAKERS, Tumblr, Yahoo Finance and Yahoo Mail. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $131.9 billion in 2019. Verizon stock began trading on July 3, 2000. Prior to this date, the stock was trading as Bell Atlantic. The company has been paying a dividend to shareholders every year since at least 1984.