In recent years, the company’s payout has not only been stable, but also above that of the broader market.
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With a yield of just over 6.5%, Verizon’s (NYSE:VZ) dividend is still safe.
For one, the company has always had a stable history of paying dividends. In recent years, the company’s payout has not only been stable but also above that of the broader market.
In fact, as of April 2025, the company pays an annualized dividend of $2.71 a share, making it one of the most attractive choices for dividend-seeking investors. Its next dividend of 67.75 cents will be paid out on May 1 to shareholders of record as of April 10.
“As the industry leader with 18 consecutive years of dividend increases, we see Verizon’s growth and strong performance as a testament to our continued focus on growing connections and strengthening the value of our customer relationships,” said Chairman and CEO Hans Vestberg.
“We continue to advance our customer-centric strategy and our commitment to delivering the highest quality mobility, broadband, and networking products and services while maintaining our financial and operational discipline.”
We also have to consider that Verizon is a telecom giant in a stable, cash-generating industry. The demand for mobile and broadband services is still high, with customers needing reliable service at all times. That demand alone ensures that Verizon has consistent revenues, free cash flow, and operating income, which allows it to support dividend payouts.
In its fourth quarter, the company’s EPS of $1.10 was in line with estimates. Revenue of $35.7 billion, up 1.7% year over year, beat by $360 million.
Total postpaid phone net additions came in at 568,000, up from 449,000 year over year. It also saw broadband net additions of 408,000. Total fixed wireless access net additions of 373,000 in fourth-quarter 2024, growing the base to nearly 4.6 million fixed wireless subscribers.
Its CAPEX was lower year over year at $17.1 billion for the full year 2024, which was down from 18.8% and was beneficial for its free cash flow.
The two companies “entered into a definitive agreement for Vertical Bridge to obtain the exclusive rights to lease, operate and manage 6,339 wireless communications towers across all 50 states and Washington, D.C. from subsidiaries of Verizon for approximately $3.3 billion, including certain commercial benefits. The transaction is structured as a prepaid lease with upfront proceeds of approximately $2.8 billion in cash,” as noted in a Verizon press release.
In short, with free cash flow growth, solid earnings, and a decrease in CAPEX, Verizon’s current yield does appear to be safe.
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