Verizon raises dividend, to extend lead as highest-yielding Dow component

Shares of Verizon Communications Inc.
VZ,
-0.48%
rose 0.2% in premarket trading Tuesday, after the telecommunications company raised its quarterly dividend by 2%, to extend its lead has the highest-yielding Dow Jones Industrial Average
DJIA,
-0.55%
component. Verizon said the new dividend of 65.25 cents a share, up from 64.00 cents a share, will be payable Nov. 1 to shareholders of record on Oct. 7. Based on Friday’s closing prices, Verizon’s new annual dividend rate implies a dividend yield of 6.32%, which compares with the implied yield for the S&P 500
SPX,
-0.41%
of 1.68%. The next highest-yielding Dow component is Dow Inc.’s stock, which had an implied dividend yield of 5.68% as of Friday’s close. Verizon shares have tumbled 19.4% over the past three months through Friday while the Dow has declined 4.9%.