Verizon's Big Dividend Hangs on This One Factor

Verizon (VZ -1.75%) pays one of the biggest dividends in the S&P 500. The telecom giant currently yields 6.5%. That's one of the top 10 payouts in the index and well above the S&P 500's 1.6% dividend yield. The company gets most of its revenue and growth from one customer segment.

The company generates plenty of cash flow to cover its big-time dividend payment and capital expenses with room to spare. However, its payout hangs on one factor: The health of the consumer. It's a risk that investors need to understand if they're buying Verizon for its high-yield dividend.

Source: Motley Fool

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