Dividend Comparison: Nike vs. Verizon
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: NASDAQ.COM
- Nike's Performance Decline: Nike's latest earnings report revealed a 35% year-over-year drop in earnings per share for Q3 2026, with gross margin contracting by 130 basis points to 40.2%, reflecting pressures from higher tariffs in North America, leading to shares hovering near a 10-year low and diminishing investor confidence in future profitability.
- Verizon's Strong Growth: Verizon reported Q1 2026 revenue of $34.4 billion, up 2.9% year-over-year, with adjusted earnings per share rising 7.6% to $1.28 and EBITDA hitting a record $13.4 billion, indicating significant progress in its turnaround strategy and attracting more investor interest.
- Dividend Payment Capability Comparison: Nike is projected to pay approximately $2.4 billion in dividends over the next 12 months, but its free cash flow is tracking below this level, raising concerns about the sustainability of its dividend; in contrast, Verizon's free cash flow is expected to reach $21.5 billion, comfortably covering its $11.8 billion dividend payout, indicating stronger financial health.
- Investor Confidence Disparity: While Nike's dividend yield stands at about 3.7%, its poor performance has weakened investor confidence in future growth; conversely, Verizon's yield is near 5.9%, and the company has raised its dividend for 19 consecutive years, showcasing the stability and attractiveness of its dividend, potentially making it a better long-term investment choice.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy VZ?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on VZ
Wall Street analysts forecast VZ stock price to fall
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 48.110
Low
43.00
Averages
46.42
High
51.00
Current: 48.110
Low
43.00
Averages
46.42
High
51.00
About VZ
Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, technology, information and streaming products and services to consumers, businesses and government entities. Its Consumer segment provides wireless and wireline communications services. It also provides fixed wireless access (FWA) broadband through its 5G or 4G Long-Term Evolution (LTE) networks portfolio. The Company's Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and advanced communication services, corporate networking solutions, security and managed network services, local and long-distance voice services and network access to deliver various Internet of Things (IoT) services and products. It provides these products and services to businesses, public sector customers and wireless and wireline carriers across the U.S. and a subset of these products and services to customers around the world.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Dividend Comparison: Nike vs. Verizon
- Nike's Dividend Struggles: Nike raised its quarterly dividend by 3% to $0.41 in November, marking its 24th consecutive increase; however, its revenue for Q3 2026 was flat at $11.3 billion, indicating weak business growth that may jeopardize future dividend sustainability.
- Profitability Decline: Nike's earnings per share plummeted 35% year-over-year to $0.35, with gross margin contracting by 130 basis points to 40.2%, primarily due to rising tariffs in North America, which poses significant pressure on profitability and could threaten future dividend payments.
- Verizon's Strong Dividend Stability: Verizon boasts a dividend yield of nearly 5.9%, reporting Q1 2026 revenue of $34.4 billion, up 2.9% year-over-year, and adjusted earnings per share rising 7.6% to $1.28, reflecting a positive turnaround in its business.
- Robust Free Cash Flow: Verizon's free cash flow increased by 4% to $3.8 billion in Q1 2026, with expectations of over $21.5 billion for the year, comfortably covering its annual dividend payout of approximately $11.8 billion, indicating strong dividend sustainability and growth potential.
See More
Dividend Comparison: Nike vs. Verizon
- Nike's Performance Decline: Nike's latest earnings report revealed a 35% year-over-year drop in earnings per share for Q3 2026, with gross margin contracting by 130 basis points to 40.2%, reflecting pressures from higher tariffs in North America, leading to shares hovering near a 10-year low and diminishing investor confidence in future profitability.
- Verizon's Strong Growth: Verizon reported Q1 2026 revenue of $34.4 billion, up 2.9% year-over-year, with adjusted earnings per share rising 7.6% to $1.28 and EBITDA hitting a record $13.4 billion, indicating significant progress in its turnaround strategy and attracting more investor interest.
- Dividend Payment Capability Comparison: Nike is projected to pay approximately $2.4 billion in dividends over the next 12 months, but its free cash flow is tracking below this level, raising concerns about the sustainability of its dividend; in contrast, Verizon's free cash flow is expected to reach $21.5 billion, comfortably covering its $11.8 billion dividend payout, indicating stronger financial health.
- Investor Confidence Disparity: While Nike's dividend yield stands at about 3.7%, its poor performance has weakened investor confidence in future growth; conversely, Verizon's yield is near 5.9%, and the company has raised its dividend for 19 consecutive years, showcasing the stability and attractiveness of its dividend, potentially making it a better long-term investment choice.
See More
Three Dividend Stocks Worth Investing In
- AbbVie's Growth Potential: AbbVie successfully expanded its product portfolio and added Botox through a $63 billion acquisition of Allergan, and despite losing patent protection for its flagship drug Humira, the company still achieved over 12% revenue growth in Q1 2026, demonstrating strong growth potential.
- Verizon's Acquisition Advantage: With a dividend yield of 5.9%, Verizon attracts investors, and despite a 17% stock price increase this year, its forward P/E ratio is only 10; the acquisition of Frontier is expected to enhance its fiber access capabilities, further boosting future growth prospects.
- Canadian Natural Resources' Inflation Hedge: Canadian Natural Resources has seen its stock price rise 40% this year amid rising oil prices, and while its dividend yield stands at 3.8%, its forward P/E remains below 14, indicating strong profitability even in economic uncertainty.
- Sustained Dividend Growth: Canadian Natural Resources has raised its dividend for 26 consecutive years, averaging a compounded annual growth rate of about 20%, maintaining stable dividend payments even during periods of low oil prices, showcasing its appeal as a high-dividend stock.
See More
Three High Dividend Stocks Worth Investing In
- AbbVie's Growth Potential: AbbVie expanded its product portfolio and added Botox through a $63 billion acquisition of Allergan in 2020, successfully growing its revenue by over 12% in Q1 2026 despite losing patent protection on its top drug, Humira.
- Verizon's Acquisition Advantage: With a 5.9% dividend yield, Verizon remains attractive to investors; despite a 17% stock price increase this year, its forward P/E is just 10, and the acquisition of Frontier will enhance its fiber access and future growth prospects.
- Canadian Natural Resources' Inflation Hedge: Canadian Natural Resources stock has surged 40% due to rising oil prices, and while this affects its 3.8% dividend yield, it has consistently raised dividends for 26 years, demonstrating stability amid economic uncertainty.
- Investment Value of Dividend Stocks: These high-dividend stocks not only provide stable income but also reduce overall portfolio risk, making AbbVie, Verizon, and Canadian Natural Resources noteworthy investment options right now.
See More
Verizon Offers 5.9% Dividend Yield Supported by Strong Cash Flow
- Dividend Yield Advantage: Verizon offers a 5.9% dividend yield with an annualized payout of $2.83, supported by strong free cash flow guidance of $17.5 to $18.5 billion in 2025, ensuring stable dividend payments and boosting investor confidence.
- Investment Return Potential: Over the past decade, SCHD has achieved a 229% price return, with quarterly dividends increasing from $0.12 in 2011 to approximately $0.25 in early 2026, demonstrating its appeal and stability for long-term investors.
- Capital Requirement Analysis: Calculating with a blended yield of 3.2%, replacing a $75,000 annual income requires about $2.35 million in capital, indicating that pure dividend growth retirement plans take decades to build, reflecting the long-term planning needs of investors.
- Risk and Reward Balance: At an 8.5% blended yield, the capital requirement to replace a $75,000 annual income drops to approximately $885,897, making high yields tempting yet risky, necessitating careful assessment of the balance between returns and risks for investors.
See More
Analysis of High-Yield Dividend Investment Strategies
- Dividend Yield Comparison: The Schwab U.S. Dividend Equity ETF (SCHD) offers a yield of 3.5% to 4% with a remarkable 229% return over the past decade, demonstrating its strong performance in dividend growth investing, making it suitable for income-focused investors.
- Capital Requirement Analysis: To replace an annual income of $120,000 at a 4% yield, approximately $3,000,000 is needed, whereas Ares Capital (ARCC) with a yield of 10.3% only requires $1,200,000, highlighting the significantly lower capital needs for high-yield investments but with increased associated risks.
- Risk and Return Trade-off: High-yield investments such as REITs and BDCs provide greater cash flow but come with the risk of dividend cuts and higher price volatility, thus investors must carefully assess the balance between risk and return.
- Tax Impact Consideration: Qualified dividends are taxed at lower rates, while distributions from BDCs and REITs are taxed as ordinary income, necessitating investors to consider tax implications when restructuring their portfolios to optimize net returns.
See More
Dividend Comparison: Nike vs. Verizon
- Nike's Dividend Struggles: Nike raised its quarterly dividend by 3% to $0.41 in November, marking its 24th consecutive increase; however, its revenue for Q3 2026 was flat at $11.3 billion, indicating weak business growth that may jeopardize future dividend sustainability.
- Profitability Decline: Nike's earnings per share plummeted 35% year-over-year to $0.35, with gross margin contracting by 130 basis points to 40.2%, primarily due to rising tariffs in North America, which poses significant pressure on profitability and could threaten future dividend payments.
- Verizon's Strong Dividend Stability: Verizon boasts a dividend yield of nearly 5.9%, reporting Q1 2026 revenue of $34.4 billion, up 2.9% year-over-year, and adjusted earnings per share rising 7.6% to $1.28, reflecting a positive turnaround in its business.
- Robust Free Cash Flow: Verizon's free cash flow increased by 4% to $3.8 billion in Q1 2026, with expectations of over $21.5 billion for the year, comfortably covering its annual dividend payout of approximately $11.8 billion, indicating strong dividend sustainability and growth potential.
See More
Dividend Comparison: Nike vs. Verizon
- Nike's Performance Decline: Nike's latest earnings report revealed a 35% year-over-year drop in earnings per share for Q3 2026, with gross margin contracting by 130 basis points to 40.2%, reflecting pressures from higher tariffs in North America, leading to shares hovering near a 10-year low and diminishing investor confidence in future profitability.
- Verizon's Strong Growth: Verizon reported Q1 2026 revenue of $34.4 billion, up 2.9% year-over-year, with adjusted earnings per share rising 7.6% to $1.28 and EBITDA hitting a record $13.4 billion, indicating significant progress in its turnaround strategy and attracting more investor interest.
- Dividend Payment Capability Comparison: Nike is projected to pay approximately $2.4 billion in dividends over the next 12 months, but its free cash flow is tracking below this level, raising concerns about the sustainability of its dividend; in contrast, Verizon's free cash flow is expected to reach $21.5 billion, comfortably covering its $11.8 billion dividend payout, indicating stronger financial health.
- Investor Confidence Disparity: While Nike's dividend yield stands at about 3.7%, its poor performance has weakened investor confidence in future growth; conversely, Verizon's yield is near 5.9%, and the company has raised its dividend for 19 consecutive years, showcasing the stability and attractiveness of its dividend, potentially making it a better long-term investment choice.
See More
Three Dividend Stocks Worth Investing In
- AbbVie's Growth Potential: AbbVie successfully expanded its product portfolio and added Botox through a $63 billion acquisition of Allergan, and despite losing patent protection for its flagship drug Humira, the company still achieved over 12% revenue growth in Q1 2026, demonstrating strong growth potential.
- Verizon's Acquisition Advantage: With a dividend yield of 5.9%, Verizon attracts investors, and despite a 17% stock price increase this year, its forward P/E ratio is only 10; the acquisition of Frontier is expected to enhance its fiber access capabilities, further boosting future growth prospects.
- Canadian Natural Resources' Inflation Hedge: Canadian Natural Resources has seen its stock price rise 40% this year amid rising oil prices, and while its dividend yield stands at 3.8%, its forward P/E remains below 14, indicating strong profitability even in economic uncertainty.
- Sustained Dividend Growth: Canadian Natural Resources has raised its dividend for 26 consecutive years, averaging a compounded annual growth rate of about 20%, maintaining stable dividend payments even during periods of low oil prices, showcasing its appeal as a high-dividend stock.
See More
Three High Dividend Stocks Worth Investing In
- AbbVie's Growth Potential: AbbVie expanded its product portfolio and added Botox through a $63 billion acquisition of Allergan in 2020, successfully growing its revenue by over 12% in Q1 2026 despite losing patent protection on its top drug, Humira.
- Verizon's Acquisition Advantage: With a 5.9% dividend yield, Verizon remains attractive to investors; despite a 17% stock price increase this year, its forward P/E is just 10, and the acquisition of Frontier will enhance its fiber access and future growth prospects.
- Canadian Natural Resources' Inflation Hedge: Canadian Natural Resources stock has surged 40% due to rising oil prices, and while this affects its 3.8% dividend yield, it has consistently raised dividends for 26 years, demonstrating stability amid economic uncertainty.
- Investment Value of Dividend Stocks: These high-dividend stocks not only provide stable income but also reduce overall portfolio risk, making AbbVie, Verizon, and Canadian Natural Resources noteworthy investment options right now.
See More
Verizon Offers 5.9% Dividend Yield Supported by Strong Cash Flow
- Dividend Yield Advantage: Verizon offers a 5.9% dividend yield with an annualized payout of $2.83, supported by strong free cash flow guidance of $17.5 to $18.5 billion in 2025, ensuring stable dividend payments and boosting investor confidence.
- Investment Return Potential: Over the past decade, SCHD has achieved a 229% price return, with quarterly dividends increasing from $0.12 in 2011 to approximately $0.25 in early 2026, demonstrating its appeal and stability for long-term investors.
- Capital Requirement Analysis: Calculating with a blended yield of 3.2%, replacing a $75,000 annual income requires about $2.35 million in capital, indicating that pure dividend growth retirement plans take decades to build, reflecting the long-term planning needs of investors.
- Risk and Reward Balance: At an 8.5% blended yield, the capital requirement to replace a $75,000 annual income drops to approximately $885,897, making high yields tempting yet risky, necessitating careful assessment of the balance between returns and risks for investors.
See More
Analysis of High-Yield Dividend Investment Strategies
- Dividend Yield Comparison: The Schwab U.S. Dividend Equity ETF (SCHD) offers a yield of 3.5% to 4% with a remarkable 229% return over the past decade, demonstrating its strong performance in dividend growth investing, making it suitable for income-focused investors.
- Capital Requirement Analysis: To replace an annual income of $120,000 at a 4% yield, approximately $3,000,000 is needed, whereas Ares Capital (ARCC) with a yield of 10.3% only requires $1,200,000, highlighting the significantly lower capital needs for high-yield investments but with increased associated risks.
- Risk and Return Trade-off: High-yield investments such as REITs and BDCs provide greater cash flow but come with the risk of dividend cuts and higher price volatility, thus investors must carefully assess the balance between risk and return.
- Tax Impact Consideration: Qualified dividends are taxed at lower rates, while distributions from BDCs and REITs are taxed as ordinary income, necessitating investors to consider tax implications when restructuring their portfolios to optimize net returns.
See More
