Verizon's High-Yield Madness: Should You Buy or Beware?

Verizon Communications Inc. (NYSE:VZ) is a popular high-yield stock, but investors should be cautious. While the company has raised its dividend for 17 consecutive years, this streak comes at a cost. Verizon is backed into a corner and cannot cut or fail to raise the dividend without the stock crashing. This limits the company's ability to invest in growth and innovation. Additionally, Verizon's sales growth is stagnant, its balance sheet is burdened with increasing debt, and it operates in a capital-intensive industry. Investors may be better off considering dividend growth stocks like Texas Instruments (TXN) that have a track record of increasing dividends and strong cash management.