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EA vs VZ: Dividend Comparison

EA$200.48
Electronic Arts Inc.
Communication Services
vs
VZ$49.07
Verizon Communications Inc
Communication Services

Dividend data as of

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.

Verdict

Best for Income
VZ
Higher yield at 5.77%
Best for Safety
EA
Lower payout ratio (28%)
Metric
Price
$200.48
$49.07
Dividend Yield
0.38%
5.77%
Annual Dividend
$0.76
$2.74
5yr Div CAGR
9.5%
3yr Div CAGR
17.6%
Consecutive Years
0
Payout Ratio
28.46%
50.37%
P/E Ratio
Market Cap
Income on $10k
$38/yr
$577/yr

Yield Analysis

EA
0.38%
VZ
5.77%

VZ yields 5.40% more than EA. In dollar terms, EA pays $0.76/share vs VZ's $2.73/share annually.

Dividend Growth

EA 5yr CAGR
VZ 5yr CAGR
9.5%
accelerating

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
Safe
Payout Ratio28%
VZ
Safe
Payout Ratio50%

EA: The payout ratio of 28% is well within sustainable levels, leaving room for future increases.

VZ: The payout ratio of 50% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.5x.

Estimated Annual Dividend Income

Based on current dividend yields. Actual income may vary.

Investment
EA
VZ
$10,000
$38/yr
$577/yr
$50,000
$188/yr
$2,886/yr
$100,000
$376/yr
$5,771/yr

What does $10,000 buy in EA vs VZ today?

At $200.48 per share, $10,000 buys about 49.9 shares of Electronic Arts Inc. (EA). Each share pays $0.76 per year in dividends, so the position starts out generating roughly $38 per year — about $3 a month.

At $49.07 per share, $10,000 buys about 203.8 shares of Verizon Communications Inc (VZ). Each share pays $2.73 per year in dividends, so the position starts out generating roughly $557 per year — about $46 a month.

VZ is the larger income stream from day one: $519 per year more on the same $10,000 invested.

Why is there no dividend growth comparison for EA?

REWD's dividend database has no five-year growth rate for Electronic Arts Inc. (EA) — most often because the dividend history is too short to compute one, which is common for companies that began paying dividends only in the past few years.

What the data does show for EA: a 0.38% current yield and a 28% payout ratio, which leaves ample room to raise the payout from here. Until a multi-year raise history exists, treat any growth assumption for EA as a guess rather than a trend.

Verizon Communications Inc (VZ) is the one with a measurable track record here — dividend raises of about 9.5% a year over the past five years. If a proven raise history matters to you, VZ wins that dimension by default until EA builds one.

Can EA and VZ afford their dividends?

Electronic Arts Inc. (EA) pays out about 28% of its earnings as dividends, which implies roughly 3.5x earnings coverage.

Verizon Communications Inc (VZ) earns $4.06 per share against $2.73 paid out in dividends — 1.5x coverage (a 50% payout ratio).

EA's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for VZ if earnings weaken.

Which fits an early-retirement income portfolio better, EA or VZ?

For income you need right now, Verizon Communications Inc (VZ) leads: $100,000 invested today pays about $481 a month at the current 5.77% yield, versus $31 a month from Electronic Arts Inc. (EA) at 0.38%.

Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.

$10,000 with DRIP: projected annual income

If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $39/yr in EA vs $2,502/yr in VZ by year 10.

Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR (0% where growth history is unavailable). A projection, not a prediction — no price appreciation modeled.

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Frequently Asked Questions

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