Verizon vs. AT&T: How those high yields stack up on dividends

As we enter third quarter earnings season, many investors will be analyzing stocks for future trades.

After reporting third-quarter results on Thursday, AT&T shares jumped more than 10% as the company beat its earnings estimate by more than 11%.

Verizon shares fell to levels not seen in the past decade after beating earnings estimates by 2.33% and losing subscribers due to rising prices .

With inflationary pressures reducing the purchasing power of US consumers, mobile carriers such as AT&T and T-Mobile US TMUS could steal customers from Verizon. After the recent earnings release, it's clearer that AT&T may have an edge over Verizon with a looming global recession. Here's how AT&T and Verizon compare.

Verizon Communications Inc. VZ offers a dividend yield of 7.41% or $2.61 per share per year, using quarterly payments, with an excellent track record of increasing its dividends for 18 consecutive years. Verizon serves approximately 93 million postpaid customers and 23 million prepaid customers since acquiring Tracfone, its nationwide network, making it the largest wireless carrier in the United States.

In the third quarter, Verizon reported 189,000 wireless retail postpaid phone net losses, which can be attributed to price increases and additional fees. Although Verizon beat consensus estimates and posted third-quarter revenue of $34.2 billion, up 4% year-over-year, the company still saw its price drop to its lowest decade level.

Verizon also saw 8,000 postpaid phone network additions in the third quarter.

AT&T Inc. T offers a dividend yield of 6.57% or $1.11 per share per year, making quarterly payments, with an inconsistent history of increasing its dividends . AT&T is the third largest wireless carrier in the United States, connecting 68 million postpaid customers and 17 million prepaid customers.

AT&T beat consensus estimates in its third-quarter earnings, posting revenue of $29.64 billion, with wireless revenue up 5.6% and Broadband revenues up 6.1% year-over-year. The wireless carrier also saw 708,000 postpaid phone network adds; with over 2.2 million in the third quarter, which should be the best in the industry.

Also Read: American Express Analyst Says Buying Lower Earnings: 'Fundamentals Remain Strong'

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