Verizon vs AT&T: Which Dividend Stock Offers a Higher Yield?

Verizon and AT&T are popular dividend stocks with yields of 6.3% and 6.1%, respectively. Investors are attracted to their robust yields. Verizon's yield is higher, but its stock price is also higher. AT&T's yield is slightly lower, but its stock price is lower as well. Both stocks offer stable income for investors, but Verizon's higher yield may make it a more attractive option for some investors.

In the realm of dividend stocks, Verizon Communications (NYSE: VZ) and AT&T (NYSE: T) stand out due to their robust yields. Both companies offer stable income streams for investors, with Verizon boasting a yield of 6.3% and AT&T at 6.1% [2]. However, the choice between the two may depend on an investor's risk tolerance and financial goals.

Verizon's higher yield is an attractive feature for income-focused investors. The telecommunications giant has maintained its dividend for 42 consecutive years, providing a reliable income stream. Verizon's stock price, however, is also higher, trading at a price-to-earnings (P/E) ratio of 10.15 [2]. This higher valuation may be justified by the company's expected 2-3% adjusted EBITDA growth rate and the potential for faster growth in consumer wireless and broadband segments [2].

On the other hand, AT&T offers a slightly lower yield but a more modest stock price. The company's dividend yield of 6.1% is still substantial, and its stock price is trading at a P/E ratio of 17, which is lower than the S&P 500 average [2]. AT&T's financials have been strong, with the company expecting free cash flow of at least $16 billion this year, far more than the $8.3 billion it pays out in dividends annually [2]. Additionally, AT&T's acquisition of Lumen's Mass Markets fiber business may provide growth potential, nearly doubling the company's fiber locations by the end of 2030 [2].

Both Verizon and AT&T have shown commitment to dividend payments and have maintained their dividends through various market conditions. However, Verizon's higher yield may make it a more attractive option for some investors seeking a higher income stream, despite the higher stock price. Conversely, AT&T's lower stock price and still substantial yield may be appealing to investors looking for a more conservative option.

References:
[1] https://www.marketscreener.com/quote/stock/CVS-HEALTH-CORPORATION-12230/news/Cvs-Health-Announces-A-Quarterly-Dividend-Payable-on-August-1-2025-50448582/
[2] https://uk.investing.com/news/analyst-ratings/morgan-stanley-resumes-verizon-stock-coverage-with-equalweight-rating-93CH-4163403