Happy Dividend Day!
Find out what it all means for Verizon, shareholders… and YOU!
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Today on Up To Speed Live:
- It’s Dividend Day: But what is a dividend?
- What do dividends mean to Verizon shareholders?
- What do dividends mean to VTeamers?
Today’s UTS was all about dividends. Why? Because it’s Dividend Day, of course! And, to celebrate we were joined by a fantastic lineup of experts who told us all about it and what it means for us V Teamers.
This episode included Scott Goldman, AVP, Investor Relations, Scott Hendrix, Sr. Director, Executive Compensation and Sarah Owen, Assoc. Director, Executive Compensation. Check out what they had to say now…
First, what’s a dividend?
Glad you asked! If you're already in the know, skip to the end to find out what it means for you as a V Teamer. Spoiler alert: It’s like free money.
If you’re still here, a dividend is a portion of the company's profits paid to shareholders, approved by our Board of Directors. In short, it's Verizon's way of sharing the wealth with everyone who’s invested in our success.
What do dividends mean to Verizon shareholders?
A lot! We’ve been paying dividends to our shareholders since 1983, back when we were known as Bell Atlantic. And, we’re not the only ones who do this — 80% of Fortune 500 companies pay dividends to their shareholders.
Why?
Because, in addition to being a great way to share our success with shareholders, it’s also a great way to assure them of our financial strength and stability. And, we are strong! Verizon has proudly increased its dividend for 17 consecutive years.
In June, our Board approved a quarterly dividend of $0.665 per share, totaling $2.66 annually. That means, if you own a share of Verizon stock, you received $0.665 in cash today. Cheers to that!
Which leads us to the most important question of all...
What does this mean for you, our V Teamers?
Whew! All this talk about dividends can be a lot to take in. Luckily, Scott Hendrix and Sarah Owen from our compensation team broke down what it means for us, emphasizing that there are many ways we can benefit from Verizon’s success, starting with Stock Together and DEUs. Here’s what they mean:
- Stock Together: This program gives employees Restricted Stock Units (RSUs) as part of their compensation. Part of these RSUs "vest," or become yours, after each year for three years. Once they vest, you can cash them out, and the amount you receive depends on how well Verizon's stock is doing. So, the better our stock performs, the more money you can make!
- Dividend Equivalent Units (DEUs): As part of the Stock Together program, Verizon also gives out DEUs. These are like bonus shares that match the dividends paid to shareholders. They're added to your RSU balance every time a dividend is paid, and you usually see them in your Fidelity account 1-2 business days after the dividend pay date. Over time, DEUs can really add up and significantly increase your overall earnings. For instance, if you have 50 RSUs and Verizon declares a dividend of $0.665 per share, you'd receive $33.25 worth of DEUs, which increases your total RSU holdings.
This is great, but wondering what's next?
Scott Hendrix emphasized the importance of understanding your total compensation package, especially Stock Together and DEUs, because when Verizon wins, we all win. CCheck your Fidelity account tomorrow to see your DEUs or learn more about Stock Together.
