GOOGL vs VZ: Dividend Yield, Growth & Safety Comparison
Alphabet Inc. (GOOGL) 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 GOOGL's 0.27%, a gap of 5.50%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | GOOGL | VZ |
|---|
| Dividend Yield | 0.27% | 5.77% |
| Annual Dividend | $0.84 | $2.73 |
| 5-Year CAGR | N/A | 9.5% |
| Payout Ratio | 8% | 50% |
| Consecutive Years | N/A | 0 |
| Price | $306.62 | $49.07 |
Yield Comparison
Verizon Communications Inc (VZ) currently yields 5.77%, which is attractive for the broader market. That's 5.50% more than Alphabet Inc. (GOOGL), which yields 0.27%. In dollar terms, VZ pays $2.73/share annually versus GOOGL's $0.84/share.
Dividend Growth
VZ has a 5-year dividend CAGR of 9.5%. Growth data is not available for GOOGL. 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
GOOGL's dividend safety is rated "Safe." The payout ratio of 8% 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. GOOGL's payout ratio of 8% 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 $27/year from GOOGL — a difference of $550/year. At $100,000, that gap widens to $5500/year.
Verdict
- Best for income: VZ
- Best for safety: GOOGL
Frequently Asked Questions
Which has a higher dividend yield, GOOGL or VZ?
Verizon Communications Inc (VZ) has a higher dividend yield of 5.77% compared to Alphabet Inc. (GOOGL) at 0.27%.
Which is safer for dividend income, GOOGL or VZ?
Alphabet Inc.'s dividend safety is rated "Safe" while Verizon Communications Inc is rated "Safe." The payout ratio of 8% 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 GOOGL vs VZ generate?
A $10,000 investment in GOOGL generates approximately $27/year in dividends, while the same amount in VZ generates about $577/year.
Which has a lower payout ratio, GOOGL or VZ?
Alphabet Inc. has a lower payout ratio of 8% compared to Verizon Communications Inc's 50%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
GOOGL vs VZ: which is better for retirement income?
It depends on your priorities. VZ for current income, GOOGL for safety. Many retirement investors hold both for diversification.
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