Verizon's Stable Cash Flow and High Dividend Attract Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Source: NASDAQ.COM
- Stable Cash Flow: Verizon's recurring revenue from monthly phone bills provides a solid cash flow, with free cash flow nearing $20 billion in 2025, allowing the company to allocate 58% of that to dividends, ensuring ongoing shareholder returns.
- Attractive Dividend Yield: The company offers a forward dividend yield of 5.82%, translating to approximately $58 in annual income on a $1,000 investment, making it appealing for income-focused investors seeking reliable returns.
- Strategic Shift Under New Leadership: New CEO Dan Schulman is focusing on higher-margin services to enhance customer lifetime value while reducing reliance on short-term promotions, which could improve the company's long-term financial performance.
- Market Competition and Growth: Despite intense competition in the wireless market, Verizon added 55,000 postpaid phone subscribers in 2025 and experienced growth in internet broadband and fiber services, demonstrating its stability and potential for revenue growth.
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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: 48.010
Low
43.00
Averages
46.42
High
51.00
Current: 48.010
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 Strategic Shift and Dividend Appeal
- Revenue Growth: Verizon's revenue rose 2.9% year-over-year in 2025, with free cash flow increasing by 4% to $3.8 billion, demonstrating the company's stability in a highly competitive wireless market and boosting investor confidence.
- User Growth: The company added 55,000 postpaid phone subscribers and saw growth in internet broadband and fiber services, indicating its sustained competitiveness and customer appeal in the market.
- Dividend Yield: With a forward dividend yield of 5.82%, Verizon offers approximately $58 in annual income on a $1,000 investment, highlighting its attractiveness as a high-yield stock, especially in the current economic climate.
- Strategic Shift: New CEO Dan Schulman is shifting the sales focus from lower-margin products to more profitable recurring revenue services, aiming to enhance customer lifetime value and drive long-term stable revenue growth and cash flow.
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- Brookfield Infrastructure: Brookfield Infrastructure has increased its dividend every year for 17 years, achieving a 9% compound annual growth rate, and aims to continue growing dividends at a rate of 5% to 9% annually, demonstrating strong cash flow stability.
- Realty Income: Realty Income has raised its dividend 134 times since going public in 1994, with a compound annual growth rate of 4.2%, and has maintained a conservative payout ratio and strong balance sheet, positioning it well for continued portfolio expansion.
- Verizon Communications: Verizon has raised its dividend for 19 consecutive years, currently yielding nearly 6%, and is projected to generate $21.5 billion in free cash flow this year, comfortably covering its $11.6 billion dividend cost, indicating robust financial health and growth potential.
- Advantages of High-Yield Stocks: Brookfield, Realty Income, and Verizon are considered ideal high-yield stocks due to their stable cash flows and financial strength, making them top choices for investors seeking passive income.
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- Realty Income: Realty Income owns over 15,500 properties and currently yields more than 5%, having raised its dividend 134 times since its 1994 IPO at a 4.2% compound annual growth rate, maintaining growth for 114 consecutive quarters, indicating robust financial capacity and long-term growth potential.
- Verizon Communications: Verizon offers a nearly 6% dividend yield and has raised its dividend for 19 consecutive years, with projected free cash flow of $21.5 billion this year, sufficient to cover its $11.6 billion annual dividend payout, reflecting strong cash flow and solid financial health.
- Core Income Holdings: Brookfield Infrastructure, Realty Income, and Verizon are ideal high-yield stocks that provide investors with stable cash flows and ongoing growth, making them suitable for those looking to start generating passive income.
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Meta Launches AI Subscription Services, Seeking New Revenue Streams
- AI Subscription Service Testing: Meta announced it will test two subscription services in Singapore, Guatemala, and Bolivia, priced at $7.99 and $19.99 per month, aiming to create new revenue streams through its AI app and website, despite advertising still accounting for 98% of its revenue.
- Cloud Computing Potential: Zuckerberg mentioned at the shareholder meeting that a cloud computing business is “definitely on the table,” which could position Meta against Amazon, Microsoft, and Google, although the company has yet to establish sufficient infrastructure in this area.
- Revenue Growth Expectations: Analysts predict that Meta's subscription services could contribute up to $3 billion in revenue by 2027, growing to $16 billion by 2030, which, while a small fraction of its $200 billion annual revenue, indicates significant market potential.
- Enterprise Market Challenges: Meta faces challenges in expanding into the enterprise market, with analysts noting that the company needs to build its business from the ground up and enhance its technology and manpower to compete in cloud computing with existing leaders.
See More
Verizon's Stable Cash Flow and High Dividend Attract Investors
- Stable Cash Flow: Verizon's recurring revenue from monthly phone bills provides a solid cash flow, with free cash flow nearing $20 billion in 2025, allowing the company to allocate 58% of that to dividends, ensuring ongoing shareholder returns.
- Attractive Dividend Yield: The company offers a forward dividend yield of 5.82%, translating to approximately $58 in annual income on a $1,000 investment, making it appealing for income-focused investors seeking reliable returns.
- Strategic Shift Under New Leadership: New CEO Dan Schulman is focusing on higher-margin services to enhance customer lifetime value while reducing reliance on short-term promotions, which could improve the company's long-term financial performance.
- Market Competition and Growth: Despite intense competition in the wireless market, Verizon added 55,000 postpaid phone subscribers in 2025 and experienced growth in internet broadband and fiber services, demonstrating its stability and potential for revenue growth.
See More
Top ETFs for Down Markets: Consistent Outperformance
- FDL Outperformance: The First Trust Morningstar Dividend Leaders ETF (FDL) gained approximately 3% during the 2022 bear market when the S&P 500 fell by 19%, demonstrating its ability to withstand market downturns effectively.
- Year-to-Date Returns: As of March 30, FDL rose about 15% while the S&P 500 dropped 7.3% and the Nasdaq Composite fell 10.5%, showcasing its strong resilience and attractiveness to investors in turbulent times.
- DHS Stable Returns: The WisdomTree U.S. High Dividend ETF (DHS) returned about 4% in 2022, significantly outperforming both the S&P 500 and Nasdaq, highlighting its stability during market corrections.
- Long-Term Performance: Currently, DHS has a year-to-date return of approximately 12% and around 24% over the past 12 months, with annualized returns of 11% and 10% over the past five and ten years, respectively, further validating its effectiveness as a diversification tool in investment portfolios.
See More
Verizon's Strategic Shift and Dividend Appeal
- Revenue Growth: Verizon's revenue rose 2.9% year-over-year in 2025, with free cash flow increasing by 4% to $3.8 billion, demonstrating the company's stability in a highly competitive wireless market and boosting investor confidence.
- User Growth: The company added 55,000 postpaid phone subscribers and saw growth in internet broadband and fiber services, indicating its sustained competitiveness and customer appeal in the market.
- Dividend Yield: With a forward dividend yield of 5.82%, Verizon offers approximately $58 in annual income on a $1,000 investment, highlighting its attractiveness as a high-yield stock, especially in the current economic climate.
- Strategic Shift: New CEO Dan Schulman is shifting the sales focus from lower-margin products to more profitable recurring revenue services, aiming to enhance customer lifetime value and drive long-term stable revenue growth and cash flow.
See More
Stable Growth of High-Yield Stocks
- Brookfield Infrastructure: Brookfield Infrastructure has increased its dividend every year for 17 years, achieving a 9% compound annual growth rate, and aims to continue growing dividends at a rate of 5% to 9% annually, demonstrating strong cash flow stability.
- Realty Income: Realty Income has raised its dividend 134 times since going public in 1994, with a compound annual growth rate of 4.2%, and has maintained a conservative payout ratio and strong balance sheet, positioning it well for continued portfolio expansion.
- Verizon Communications: Verizon has raised its dividend for 19 consecutive years, currently yielding nearly 6%, and is projected to generate $21.5 billion in free cash flow this year, comfortably covering its $11.6 billion dividend cost, indicating robust financial health and growth potential.
- Advantages of High-Yield Stocks: Brookfield, Realty Income, and Verizon are considered ideal high-yield stocks due to their stable cash flows and financial strength, making them top choices for investors seeking passive income.
See More
High-Yield Stocks for Passive Income Generation
- Brookfield Infrastructure: Brookfield Infrastructure currently offers a dividend yield exceeding 4%, significantly higher than the S&P 500's 1.1%, and has increased its dividend annually for 17 years at a 9% compound annual growth rate, with expectations to continue growing at 5% to 9% annually, showcasing its stable cash flows and strong market position.
- Realty Income: Realty Income owns over 15,500 properties and currently yields more than 5%, having raised its dividend 134 times since its 1994 IPO at a 4.2% compound annual growth rate, maintaining growth for 114 consecutive quarters, indicating robust financial capacity and long-term growth potential.
- Verizon Communications: Verizon offers a nearly 6% dividend yield and has raised its dividend for 19 consecutive years, with projected free cash flow of $21.5 billion this year, sufficient to cover its $11.6 billion annual dividend payout, reflecting strong cash flow and solid financial health.
- Core Income Holdings: Brookfield Infrastructure, Realty Income, and Verizon are ideal high-yield stocks that provide investors with stable cash flows and ongoing growth, making them suitable for those looking to start generating passive income.
See More
Meta Launches AI Subscription Services, Seeking New Revenue Streams
- AI Subscription Service Testing: Meta announced it will test two subscription services in Singapore, Guatemala, and Bolivia, priced at $7.99 and $19.99 per month, aiming to create new revenue streams through its AI app and website, despite advertising still accounting for 98% of its revenue.
- Cloud Computing Potential: Zuckerberg mentioned at the shareholder meeting that a cloud computing business is “definitely on the table,” which could position Meta against Amazon, Microsoft, and Google, although the company has yet to establish sufficient infrastructure in this area.
- Revenue Growth Expectations: Analysts predict that Meta's subscription services could contribute up to $3 billion in revenue by 2027, growing to $16 billion by 2030, which, while a small fraction of its $200 billion annual revenue, indicates significant market potential.
- Enterprise Market Challenges: Meta faces challenges in expanding into the enterprise market, with analysts noting that the company needs to build its business from the ground up and enhance its technology and manpower to compete in cloud computing with existing leaders.
See More
Verizon's Stable Cash Flow and High Dividend Attract Investors
- Stable Cash Flow: Verizon's recurring revenue from monthly phone bills provides a solid cash flow, with free cash flow nearing $20 billion in 2025, allowing the company to allocate 58% of that to dividends, ensuring ongoing shareholder returns.
- Attractive Dividend Yield: The company offers a forward dividend yield of 5.82%, translating to approximately $58 in annual income on a $1,000 investment, making it appealing for income-focused investors seeking reliable returns.
- Strategic Shift Under New Leadership: New CEO Dan Schulman is focusing on higher-margin services to enhance customer lifetime value while reducing reliance on short-term promotions, which could improve the company's long-term financial performance.
- Market Competition and Growth: Despite intense competition in the wireless market, Verizon added 55,000 postpaid phone subscribers in 2025 and experienced growth in internet broadband and fiber services, demonstrating its stability and potential for revenue growth.
See More
Top ETFs for Down Markets: Consistent Outperformance
- FDL Outperformance: The First Trust Morningstar Dividend Leaders ETF (FDL) gained approximately 3% during the 2022 bear market when the S&P 500 fell by 19%, demonstrating its ability to withstand market downturns effectively.
- Year-to-Date Returns: As of March 30, FDL rose about 15% while the S&P 500 dropped 7.3% and the Nasdaq Composite fell 10.5%, showcasing its strong resilience and attractiveness to investors in turbulent times.
- DHS Stable Returns: The WisdomTree U.S. High Dividend ETF (DHS) returned about 4% in 2022, significantly outperforming both the S&P 500 and Nasdaq, highlighting its stability during market corrections.
- Long-Term Performance: Currently, DHS has a year-to-date return of approximately 12% and around 24% over the past 12 months, with annualized returns of 11% and 10% over the past five and ten years, respectively, further validating its effectiveness as a diversification tool in investment portfolios.
See More
