EA vs VZ: Dividend Yield, Growth & Safety Comparison
Electronic Arts Inc. (EA) and Verizon Communications Inc (VZ) are both in the Communication Services sector, making them natural rivals for dividend investors. VZ offers a significantly higher 5.77% yield compared to EA's 0.38%, a gap of 5.40%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | EA | VZ |
|---|
| Dividend Yield | 0.38% | 5.77% |
| Annual Dividend | $0.76 | $2.73 |
| 5-Year CAGR | N/A | 9.5% |
| Payout Ratio | 28% | 50% |
| Consecutive Years | N/A | 0 |
| Price | $200.48 | $49.07 |
Yield Comparison
Verizon Communications Inc (VZ) currently yields 5.77%, which is attractive for the broader market. That's 5.40% more than Electronic Arts Inc. (EA), which yields 0.38%. In dollar terms, VZ pays $2.73/share annually versus EA's $0.76/share.
Dividend Growth
VZ has a 5-year dividend CAGR of 9.5%. Growth data is not available for EA. VZ: Dividend growth is accelerating — the 3-year CAGR of 17.6% exceeds the 5-year rate of 9.5% and the 10-year rate of 5.3%.
Dividend Safety
EA's dividend safety is rated "Safe." The payout ratio of 28% is well within sustainable levels, leaving room for future increases. VZ's dividend safety is rated "Safe." The payout ratio of 50% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.5x. EA's payout ratio of 28% is more conservative than VZ's 50%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in VZ generates approximately $577/year in dividend income, compared to $38/year from EA — a difference of $539/year. At $100,000, that gap widens to $5390/year.
Verdict
- Best for income: VZ
- Best for safety: EA
Frequently Asked Questions
Which has a higher dividend yield, EA or VZ?
Verizon Communications Inc (VZ) has a higher dividend yield of 5.77% compared to Electronic Arts Inc. (EA) at 0.38%.
Which is safer for dividend income, EA or VZ?
Electronic Arts Inc.'s dividend safety is rated "Safe" while Verizon Communications Inc is rated "Safe." The payout ratio of 28% is well within sustainable levels, leaving room for future increases. The payout ratio of 50% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.5x.
How much income does $10,000 in EA vs VZ generate?
A $10,000 investment in EA generates approximately $38/year in dividends, while the same amount in VZ generates about $577/year.
Which has a lower payout ratio, EA or VZ?
Electronic Arts Inc. has a lower payout ratio of 28% compared to Verizon Communications Inc's 50%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
EA vs VZ: which is better for retirement income?
It depends on your priorities. VZ for current income, EA for safety. Many retirement investors hold both for diversification.
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