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Can you earn passive income with Lumen Technologies stock?
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Let me tell you all you need to know about Lumen Technologies Dividend Income!
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Lumen Technologies Dividend
Lumen Technologies, Inc is an American telecommunications company offering different types of services such as communications, network services, security, cloud solutions, voice, and managed services.
Lumen Technologies stock is traded on the New York Stock Exchange bearing the ticker LUMN.
LUMN is a member of the S&P 500 and is classified as part of the Fortune 500.
Does Lumen Technologies Pay Dividends
Lumen Technologies, Inc (formerly CenturyLink) is an American telecommunications company that pays dividends to its shareholders.
The company currently pays dividends at a rate of $0.25 per share.
As of the writing of this post, the company has paid dividends for the last twelve months.
Lumen Technologies Dividend History
The company started paying dividends to its shareholders starting from June 16, 1995, at a rate of $0.0825 per share.
Ever since then, the company has been paying dividends to its shareholders to the present date.
As of the writing of this post, Lumen Technologies pays $0.25 of dividends per share.
Lumen Technologies Financial Figures
As of 2021, Lumen Technologies presented the following financial figures:
- $19.69 billion in revenues
- $4.29 billion in operating income
- $2.03 billion in net income
- $57.99 billion in total assets
- $11.84 billion in shareholder equity
- $1.00 annual dividend per share
Lumen Technologies Dividend Payout Ratio
As of 2021, Lumen Technologies’ dividend payout ratio is 50.1%.
This is the case as the company has 1.017 billion shares outstanding, pays $1.00 in annual dividends, and has a net income of $2.03 billion.
The company is therefore required to pay out $1.017 billion in dividends to its shareholders every year while generating a net income of $2.03 billion.
The company pays out $1.017 billion to shareholders and reinvests $1.013 billion back into the business.
Passive Income With Lumen Technologies Dividend
Considering Lumen Technologies has been paying dividends for at least the past twelve months, investors who are looking to earn passive income through dividends can consider buying Lumen Technologies stock.
Dividend Payout Ratio
In 2021, Lumen Technologies had 1.017 billion shares outstanding.
On this basis, the company is required to pay $1.017 billion in dividends per year while having a net income of $2.03 billion.
This means that the company’s dividend payout ratio comes out to 50.1%.
This payout ratio is high but can be sustainable considering Lumen Technologies has historically had the cash flow to pay such dividends.
Risk Assessment
Investors looking for passive income may want to consider Lumen Technologies, Inc. to diversify their portfolio by increasing their exposure to the telecommunication industry.
However, investors should be cautious of any changes in Lumen Technologies’ revenues, debt obligations, and market conditions as it may lead the company to reduce or potentially cut dividends.
It’s worth noting that the company does have $11.84 billion in equity.
It’s worth looking at Lumen’s capital structure to ensure that it can sustain paying dividends even during economic downturns.
Passive Dividend Income
If you want to earn passive income with Lumen shares, you can generate the below annual revenues by purchasing the required number of shares:
- $1,000 per year: buy 1,000 shares
- $2,000 per year: buy 2,000 shares
- $3,000 per year: buy 3,000 shares
- $4,000 per year: buy 4,000 shares
- $5,000 per year: buy 5,000 shares
- $10,000 per year: buy 10,000 shares
- $15,000 per year: buy 15,000 shares
- $20,000 per year: buy 20,000 shares
- $25,000 per year: buy 25,000 shares
- $50,000 per year: buy 50,000 shares
- $100,000 per year: buy 100,000 shares
Takeaways
So, there you have it folks!
Can you earn passive income by purchasing shares of Lumen Technologies, Inc.?
Yes, by purchasing shares of Lumen, you can earn passive income as the company does regularly pay dividends to its shareholders.
Just like any other investment, when purchasing stocks, you must make sure that you carefully assess the company’s fundamentals and risk profile before investing.
Even though a company may be part of the Fortune 500 list and be a component of the S&P 500, it does not mean that investing in such stock is risk-free.
Nonetheless, Lumen Technologies is a stock that can help you earn passive income in the telecommunications industry.
