Verizon: Dual Advantages of Dividends and Cash Flow
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy VZ?
Source: Fool
- Attractive Dividend Yield: Verizon boasts a dividend yield of 6.12%, nearly six times that of a standard S&P 500 index fund, which draws many income-seeking investors and highlights its appeal among dividend investors.
- Strong Cash Flow Growth: In 2025, Verizon generated free cash flow of $20.1 billion, up from $19.8 billion the previous year, with a forecast of at least $21.5 billion in 2026, indicating robust financial health that supports ongoing dividend payments.
- Dividend Growth Record: With a 19-year streak of increasing dividends, Verizon's reliability enhances its attractiveness as a wealth-building tool, making it a favored choice among dividend investors.
- Optimistic Future Outlook: The company anticipates a decline in net leverage to management's desired range by 2027, while also engaging in share buybacks, demonstrating confidence in future cash flow and debt management.
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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: 47.220
Low
43.00
Averages
46.42
High
51.00
Current: 47.220
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.
Verizon's Dividend Attracts Investors Amid Growth Prospects
- Dividend Appeal: Verizon's 6.12% dividend yield is nearly six times that of a basic S&P 500 index fund, attracting many income-seeking investors, particularly as market focus shifts towards growth stocks.
- Free Cash Flow Growth: In 2025, Verizon generated $20.1 billion in free cash flow, up from $19.8 billion the previous year, with forecasts indicating at least $21.5 billion in 2026, marking the highest level since 2020 and showcasing the company's strong financial health.
- Dividend Growth Story: With a 19-year streak of dividend increases, Verizon demonstrates reliability as a wealth-building tool, which is crucial for investors seeking long-term stable returns in the current market environment.
- Debt Management Outlook: Verizon expects net leverage to decline to management's desired range by 2027 while also engaging in share buybacks this year, indicating proactive measures to enhance shareholder value and further increasing its appeal.
See More
Verizon: Dual Advantages of Dividends and Cash Flow
- Attractive Dividend Yield: Verizon boasts a dividend yield of 6.12%, nearly six times that of a standard S&P 500 index fund, which draws many income-seeking investors and highlights its appeal among dividend investors.
- Strong Cash Flow Growth: In 2025, Verizon generated free cash flow of $20.1 billion, up from $19.8 billion the previous year, with a forecast of at least $21.5 billion in 2026, indicating robust financial health that supports ongoing dividend payments.
- Dividend Growth Record: With a 19-year streak of increasing dividends, Verizon's reliability enhances its attractiveness as a wealth-building tool, making it a favored choice among dividend investors.
- Optimistic Future Outlook: The company anticipates a decline in net leverage to management's desired range by 2027, while also engaging in share buybacks, demonstrating confidence in future cash flow and debt management.
See More
Tech Earnings Week to Test Market Confidence
- Strong Market Performance: The S&P 500 and Nasdaq Composite closed at record highs on Friday, primarily driven by strong performances from chipmakers like Intel, indicating that stocks related to AI infrastructure are propelling market gains.
- Importance of Earnings Week: Cramer emphasized that next week will be the most critical for the tech sector this quarter, as it will reveal whether the market's confidence in high-valuation tech stocks is overly optimistic, particularly after reports from Verizon and Corning.
- Leading Industry Performers: Cramer described Nucor as the best industrial company in the market, with its earnings report likely to attract investor attention, while Bloom Energy could see a
See More
U.S. Stocks Near All-Time Highs as Investors Eye Tech Giants' Earnings
- Strong Market Performance: The S&P 500 and Nasdaq Composite indices reached new all-time highs in April, rising over 8% and 13% respectively, indicating robust market resilience despite ongoing geopolitical tensions and AI disruption concerns, reflecting investor confidence in tech stocks.
- Earnings Pressure on Tech Giants: Next week, five of the 'Magnificent Seven' companies will report earnings, with market expectations for them to demonstrate sufficient revenue growth to justify their high AI expenditures; Alphabet, Amazon, Meta, and Microsoft have all seen stock price increases of over 10% this month, highlighting the market's keen interest in their performance.
- Federal Reserve Meeting Impact: This is expected to be Jerome Powell's last meeting as chair, with the market widely anticipating that the Fed will keep interest rates unchanged, although rising oil prices could complicate future monetary policy, necessitating close attention to how this dynamic may affect the market.
- Cautious Investor Sentiment: As the traditional market adage 'Sell in May' approaches, investors remain wary of potential downside risks, particularly in light of poor software stock performance and rising oil prices, which could further dampen market sentiment.
See More
Analysis of Verizon Holdings Changes
- Overview of Holdings Changes: As of March 31, 2026, 24 hedge funds held shares of Verizon (VZ), indicating ongoing market interest in the company, although 13F filings only reflect long positions and do not disclose short positions.
- Changes in Holdings: In the latest 13F filings, 10 funds increased their VZ holdings while 10 funds decreased theirs, suggesting a divergence in market sentiment towards VZ, which could impact its stock price volatility.
- Overall Holdings Growth: The total number of VZ shares held by hedge funds increased to 75,300,501 as of March 31, 2026, up from 69,061,694 on December 31, 2025, representing an increase of 6,238,807 shares or approximately 9.03%, indicating a generally positive outlook on the stock.
- Key Holding Funds: The top three funds holding VZ as of March 31, 2026, remain focal points for market observers, reflecting institutional confidence in Verizon's future performance and potentially providing further research opportunities for investors.
See More
Top Dividend Stocks to Consider Now
- Illinois Tool Works: Illinois Tool Works (ITW) has raised its per-share dividend for 62 consecutive years, with quarterly payouts increasing from $0.55 to $1.61 over the past decade, reflecting a robust annual growth rate exceeding 11%, showcasing its commitment to shareholder returns and stable profitability.
- Oneok's Steady Income: Oneok (OKE) currently offers a 5% dividend yield, having consistently increased its payouts over the past decade; despite oil price fluctuations, the company maintains stable cash flow through transportation fees, making it an attractive option for income investors.
- Verizon's Reliability: Verizon Communications (VZ) provides a 6.1% dividend yield, and while it may lack significant capital appreciation potential, its 19-year streak of dividend increases positions it as a reliable choice for income investors, particularly during economic uncertainty.
- Brookfield Asset Management: Brookfield Asset Management (BAM) focuses on infrastructure and renewable energy, projecting annual growth of 15% to 20%, and commits to distributing 90% of its profits as dividends, offering a solid yield of around 4%, appealing to long-term income investors.
See More
Verizon's Dividend Attracts Investors Amid Growth Prospects
- Dividend Appeal: Verizon's 6.12% dividend yield is nearly six times that of a basic S&P 500 index fund, attracting many income-seeking investors, particularly as market focus shifts towards growth stocks.
- Free Cash Flow Growth: In 2025, Verizon generated $20.1 billion in free cash flow, up from $19.8 billion the previous year, with forecasts indicating at least $21.5 billion in 2026, marking the highest level since 2020 and showcasing the company's strong financial health.
- Dividend Growth Story: With a 19-year streak of dividend increases, Verizon demonstrates reliability as a wealth-building tool, which is crucial for investors seeking long-term stable returns in the current market environment.
- Debt Management Outlook: Verizon expects net leverage to decline to management's desired range by 2027 while also engaging in share buybacks this year, indicating proactive measures to enhance shareholder value and further increasing its appeal.
See More
Verizon: Dual Advantages of Dividends and Cash Flow
- Attractive Dividend Yield: Verizon boasts a dividend yield of 6.12%, nearly six times that of a standard S&P 500 index fund, which draws many income-seeking investors and highlights its appeal among dividend investors.
- Strong Cash Flow Growth: In 2025, Verizon generated free cash flow of $20.1 billion, up from $19.8 billion the previous year, with a forecast of at least $21.5 billion in 2026, indicating robust financial health that supports ongoing dividend payments.
- Dividend Growth Record: With a 19-year streak of increasing dividends, Verizon's reliability enhances its attractiveness as a wealth-building tool, making it a favored choice among dividend investors.
- Optimistic Future Outlook: The company anticipates a decline in net leverage to management's desired range by 2027, while also engaging in share buybacks, demonstrating confidence in future cash flow and debt management.
See More
Tech Earnings Week to Test Market Confidence
- Strong Market Performance: The S&P 500 and Nasdaq Composite closed at record highs on Friday, primarily driven by strong performances from chipmakers like Intel, indicating that stocks related to AI infrastructure are propelling market gains.
- Importance of Earnings Week: Cramer emphasized that next week will be the most critical for the tech sector this quarter, as it will reveal whether the market's confidence in high-valuation tech stocks is overly optimistic, particularly after reports from Verizon and Corning.
- Leading Industry Performers: Cramer described Nucor as the best industrial company in the market, with its earnings report likely to attract investor attention, while Bloom Energy could see a
See More
U.S. Stocks Near All-Time Highs as Investors Eye Tech Giants' Earnings
- Strong Market Performance: The S&P 500 and Nasdaq Composite indices reached new all-time highs in April, rising over 8% and 13% respectively, indicating robust market resilience despite ongoing geopolitical tensions and AI disruption concerns, reflecting investor confidence in tech stocks.
- Earnings Pressure on Tech Giants: Next week, five of the 'Magnificent Seven' companies will report earnings, with market expectations for them to demonstrate sufficient revenue growth to justify their high AI expenditures; Alphabet, Amazon, Meta, and Microsoft have all seen stock price increases of over 10% this month, highlighting the market's keen interest in their performance.
- Federal Reserve Meeting Impact: This is expected to be Jerome Powell's last meeting as chair, with the market widely anticipating that the Fed will keep interest rates unchanged, although rising oil prices could complicate future monetary policy, necessitating close attention to how this dynamic may affect the market.
- Cautious Investor Sentiment: As the traditional market adage 'Sell in May' approaches, investors remain wary of potential downside risks, particularly in light of poor software stock performance and rising oil prices, which could further dampen market sentiment.
See More
Analysis of Verizon Holdings Changes
- Overview of Holdings Changes: As of March 31, 2026, 24 hedge funds held shares of Verizon (VZ), indicating ongoing market interest in the company, although 13F filings only reflect long positions and do not disclose short positions.
- Changes in Holdings: In the latest 13F filings, 10 funds increased their VZ holdings while 10 funds decreased theirs, suggesting a divergence in market sentiment towards VZ, which could impact its stock price volatility.
- Overall Holdings Growth: The total number of VZ shares held by hedge funds increased to 75,300,501 as of March 31, 2026, up from 69,061,694 on December 31, 2025, representing an increase of 6,238,807 shares or approximately 9.03%, indicating a generally positive outlook on the stock.
- Key Holding Funds: The top three funds holding VZ as of March 31, 2026, remain focal points for market observers, reflecting institutional confidence in Verizon's future performance and potentially providing further research opportunities for investors.
See More
Top Dividend Stocks to Consider Now
- Illinois Tool Works: Illinois Tool Works (ITW) has raised its per-share dividend for 62 consecutive years, with quarterly payouts increasing from $0.55 to $1.61 over the past decade, reflecting a robust annual growth rate exceeding 11%, showcasing its commitment to shareholder returns and stable profitability.
- Oneok's Steady Income: Oneok (OKE) currently offers a 5% dividend yield, having consistently increased its payouts over the past decade; despite oil price fluctuations, the company maintains stable cash flow through transportation fees, making it an attractive option for income investors.
- Verizon's Reliability: Verizon Communications (VZ) provides a 6.1% dividend yield, and while it may lack significant capital appreciation potential, its 19-year streak of dividend increases positions it as a reliable choice for income investors, particularly during economic uncertainty.
- Brookfield Asset Management: Brookfield Asset Management (BAM) focuses on infrastructure and renewable energy, projecting annual growth of 15% to 20%, and commits to distributing 90% of its profits as dividends, offering a solid yield of around 4%, appealing to long-term income investors.
See More
