Wed Jan 14 19:10:00 UTC 2026: ### Verizon’s Dividend Yield Attracts Investors Despite Stock Underperformance
The Story:
Verizon Communications (VZ) remains a top U.S. wireless carrier with 146.1 million retail connections as of the third quarter of 2025. The company’s profitability allows it to offer a substantial dividend, attracting investors seeking stable income. While the stock has underperformed the S&P 500 over the past five years (declining by 30% compared to the S&P’s 82% growth), its high dividend yield (over 6%) makes it an attractive option for certain investors. The company has raised its dividend for 19 consecutive years, with the most recent dividend being $0.69 per share quarterly, or $2.76 annually.
To generate $1,000 in annual dividends, an investment of approximately 362 shares, costing around $14,732 at the current share price of $40.66 (as of January 9, 2026), would be required. Despite investments in a 5G network, Verizon is not expected to become a growth stock, making it better suited for investors prioritizing income over capital appreciation.
Key Points:
- Verizon has 146.1 million retail connections (Q3 2025).
- The current dividend is $0.69 per share quarterly ($2.76 annually).
- The company has raised its dividend for 19 consecutive years (as of 2025).
- Around 362 shares ($14,732) are needed to generate $1,000 in annual dividends.
- Verizon stock has declined by 30% over the last five years, while the S&P 500 has grown by 82%.
Key Takeaways:
- Verizon is a strong income stock due to its high dividend yield and consistent dividend increases.
- Despite the attractive dividend, Verizon has significantly underperformed the broader market.
- Investors should align their investment goals with Verizon’s profile: income generation rather than rapid growth.
- The company’s investment in 5G networks may improve future performance, but a major shift to growth is unlikely.
- Current market trends may push investors to seek opportunities that return higher yields.
First Piper 