Currently the dividend yield is 6.46% and looks secure. The stock declined from mid 50’s to $40 and the 52 week low is $32.8, so it is 20% higher from the low’s but significantly down from last year. The results seems ok, but they did withdraw their long-term guidance, FWIW. If you sell $40 Jan 24 call you will get $3.45 in premium, and counting the dividends assuming you get called at the end, you will get 16.5% annualized return. Will you do it?
The idea of writing covered call is getting called or the price gets close enough to your strike price. But VZ stock is still declining, and every time it rallies during dividend ex date, it sells off after that. I guess both VZ and T are untouchable and the high dividend is for a reason.
When you see high dividend, question is it really a good deal. Prefer those who raise dividends regularly over high “current” dividend.
Both T, VZ have declared better results and rallied after the results They are down YTD and significantly down YTD, and recently.
While VZ rallied nearly 10% today, the current stock price is far cry from $60 in late 2020.