InvestingStocks

Is Verizon Communications a Good Dividend Stock?

5 months agoUS
Is Verizon Communications a Good Dividend Stock?Source: fool.com
Verizon Communications (VZ) is a major U.S. wireless carrier known for its substantial dividend payouts. This article examines Verizon's dividend yield, historical stock performance, and whether it's a suitable investment for those seeking passive income.

Key Insights

Verizon is the top U.S. wireless carrier by subscriber count, with 146.1 million retail connections as of Q3 2025.

The company reported $20 billion in trailing net income, returning a significant portion to shareholders through dividends.

To generate $1,000 in annual dividends from Verizon, approximately 362 shares are needed, costing around $14,732 based on a share price of $40.66 (as of January 9, 2026).

Verizon's dividend was $0.69 per share in December 2025, equating to $2.76 annually per share.

Why this matters: Verizon offers a high dividend yield (over 6%), making it attractive for income-focused investors. However, its stock has underperformed the S&P 500 over the past five years, declining by 30% while the S&P 500 grew by 82%.

In-Depth Analysis

Verizon's appeal lies in its consistent dividend payments, having raised its dividend for 19 consecutive years as of 2025. The company is investing in its 5G network, which could potentially improve future stock performance. Despite this, Verizon is not considered a growth stock. It is more suited for investors seeking stable income rather than rapid capital appreciation. Investors should consider their investment goals and risk tolerance before investing in Verizon. Younger investors prioritizing growth may want to explore other options. How to Prepare: Investors should analyze their portfolio to assess the suitability of Verizon based on their investment objectives and time horizon. Who This Affects Most: This analysis is most relevant to investors nearing retirement or those specifically seeking dividend income.

FAQs

Q: Is Verizon a good investment for growth?

No, Verizon is generally considered a stable income stock rather than a growth stock.

Q: How many shares of Verizon do I need for $1,000 in dividends?

Approximately 362 shares, based on the current dividend payout.

Key Takeaways

Verizon offers a high dividend yield, providing a steady income stream for investors.

The stock has underperformed the S&P 500 in recent years.

Consider your investment goals and risk tolerance before investing in Verizon.

Discussion

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