Verizon Communications (VZ) DIvidends Date & History

Key Takeaways

• VZ pays a quarterly dividend of $0.7075 per share, for an annualized payout of $2.83 per share.
• The stock offers a dividend yield of roughly 6%, among the highest of large-cap U.S. dividend payers.
• Verizon has increased its dividend for 20 consecutive years, though recent annual raises have been modest at around 2% to 2.5%.
• The dividend is well covered, with a payout ratio near 56% of adjusted earnings and about 54% of free cash flow.
• The next ex-dividend date is October 9, 2026, with payment scheduled for November 2, 2026.

Dividend Overview

Verizon Communications Inc. (VZ) is one of the largest telecommunications providers in the United States and a prominent fixture in income-focused portfolios. The company pays a cash dividend every quarter, most recently $0.7075 per share, which equates to an annualized distribution of $2.83 per share. Based on recent share prices, this translates to a dividend yield of roughly 6%.

Verizon is best characterized as a high-yield dividend stock with a steady, if slow, growth profile. Its payout is large relative to the broader market, but its annual increases are conservative. For investors seeking dependable current income rather than rapid dividend growth, Verizon sits among the more established and widely held dividend stocks in the communication services sector.

Dividend History and Growth

Verizon has maintained a long and consistent record of shareholder distributions. The company has raised its dividend for 20 consecutive years, a streak that places it in a select group of large-cap dividend payers. In January 2026, Verizon increased its quarterly dividend by roughly 2.5%, lifting the payment from $0.69 to $0.7075 per share.

Growth, however, has been deliberate. Over the past five years, the dividend has increased at an average annual rate of approximately 2%, reflecting management's priority on preserving a stable, predictable payout amid heavy capital spending on network infrastructure. There have been no dividend cuts in recent history, underscoring the company's commitment to its payout as a core element of its shareholder-return strategy.

Dividend Sustainability and Payout Ratio

The sustainability of Verizon's dividend rests on its earnings and, more importantly, its free cash flow. Management expects adjusted earnings per share (EPS) between roughly $4.99 and $5.04 for 2026, against an annual dividend of $2.83 per share. That implies a payout ratio of about 56% of adjusted earnings, a level generally considered comfortable for a mature telecommunications company.

Free cash flow coverage is even more reassuring. Verizon generated approximately $10.2 billion in free cash flow during the first half of 2026, up 16% year over year, and management projects full-year free cash flow growth of 9% to 10%. The dividend consumes only about 54% of free cash flow, leaving room for the company's network investments and share buybacks. While Verizon carries a sizable debt load, its steady cash generation and disciplined payout ratio support the view that the dividend is sustainable.

Dividend Compared to Industry Peers

Within the U.S. telecommunications and communication services sector, Verizon's yield stands out. Its roughly 6% dividend yield exceeds that of rival AT&T (T), which also pays a substantial but slightly lower yield, and is far above the modest, recently introduced payout from T-Mobile (TMUS). Relative to the broader communication services industry, Verizon's yield ranks near the top of its peer group.

That said, Verizon's dividend growth rate of around 2% per year is comparatively modest. Investors weighing Verizon against peers should recognize that it offers more immediate income but slower long-term dividend growth than some faster-growing, lower-yielding companies.

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Is This Stock Attractive for Dividend Investors?

Verizon is best suited to income-focused investors who prioritize a dependable, above-average current yield over aggressive dividend growth. Its roughly 6% yield and 20-year streak of increases make it a natural fit for conservative and long-term investors seeking steady cash flow, including those in or near retirement.

For dividend growth investors, Verizon may be less compelling. Its annual raises of about 2% are relatively modest and can lag inflation over time, limiting the appeal for those seeking rapid income compounding. Investors should also weigh the company's elevated debt and the capital intensity of the telecom industry, which constrain flexibility. Overall, Verizon presents a balanced profile: a high, well-covered yield supported by stable free cash flow, but with limited near-term growth catalysts. It may suit investors looking for reliable income rather than capital appreciation or aggressive dividend increases.

Disclaimer

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