Verizon Communications continues to hold a strong position in the U.S. telecommunications market, boasting a substantial 146.1 million retail connections as of the third quarter of 2025. The company reported a net income of $20 billion, reaffirming its commitment to delivering significant returns to shareholders through a stable dividend policy.
For investors interested in generating $1,000 annually from Verizon’s dividends, understanding the arithmetic of share ownership is essential. With Verizon’s current quarterly dividend set at $0.69 per share, shareholders can expect an annual dividend yield of $2.76 if the dividend remains unchanged. To achieve the $1,000 annual dividend target, an investment in approximately 362 shares is necessary, which at the current share price of $40.66 totals around $14,732. Notably, Verizon offers a dividend yield exceeding 6%, rendering it an appealing choice for those seeking passive income with relatively modest initial investments.
On the financial landscape, while Verizon’s generous dividends are commendable, the company has faced challenges in stock performance when compared to the broader S&P 500. Over the last five years, Verizon’s stock has experienced a decline of 30%, in stark contrast to the S&P 500, which has surged by 82%. Even factoring in dividends, investments in Verizon during this period have resulted in financial losses.
Looking ahead, Verizon is heavily investing in the expansion of its 5G network, a move that could enhance its stock performance moving forward. Nevertheless, potential investors should carefully assess their investment goals, as Verizon may not necessarily be positioned as a growth stock.
Verizon’s long-standing reputation is reinforced by an increase in dividends in 2025, marking the 19th consecutive year of such increases, and emphasizing the company’s dedication to returning profits to shareholders. With a robust market capitalization of $164 billion, Verizon may be particularly attractive to those prioritizing stability and consistent income through dividends. However, younger investors who are in pursuit of growth opportunities might explore alternatives that align more closely with their financial objectives.
Verizon remains a solid option for dividend-seeking investors, providing a reliable income stream in an uncertain financial landscape.