Verizon's Steady Course: 18 Years of Dividend Increases

Verizon Communications Inc. (NYSE, Nasdaq: VZ), a telecommunications giant, has consistently demonstrated its commitment to shareholder value. On December 5, 2024, Verizon's Board of Directors declared a quarterly dividend of 67.75 cents per outstanding share, marking the company's 18th consecutive year of dividend increases. This consistency is a testament to Verizon's strong financial management and dedication to serving its customers.

Verizon's dividend history showcases its unwavering commitment to rewarding shareholders. The company's latest dividend, payable on February 3, 2025, to shareholders of record at the close of business on January 10, 2025, underscores its financial stability and confidence in its future prospects. With approximately 4.2 billion shares outstanding, Verizon has distributed a total of $8.4 billion in cash dividend payments over the last three quarters.

The company's ability to maintain and increase its dividend is largely attributed to its robust cash flow and leading market positions in wireless and business segments. Verizon's position as the largest consumer wireless base in the U.S. and its leading share in the business sector have enabled it to generate significant cash flow, which it uses to pay dividends while investing in growth and innovation. Additionally, Verizon's strong revenue performance, with $134.0 billion in 2023, further bolsters its financial strength.

Verizon's dividend payout ratio, based on its 67.75 cents per share quarterly dividend and 2023 earnings per share of $4.33, is approximately 15.66%. This is slightly lower than AT&T's payout ratio of around 7.5%, indicating that Verizon retains more earnings for reinvestment, potentially driving future growth.



Verizon's dividend history and future prospects have significant implications for investors. The company's reliable dividend growth reflects its strong financial management and commitment to serving customers. Given Verizon's robust cash flow and leading market positions, analysts may maintain or raise their price targets, recommending long-term investment in Verizon.



In conclusion, Verizon's 18-year streak of consecutive dividend increases demonstrates its commitment to shareholder value and financial stability. With a strong cash flow, leading market positions, and a healthy dividend payout ratio, Verizon is well-positioned to maintain and grow its dividends, making it an attractive investment option for income-oriented investors. As Verizon continues to focus on its strategic priorities and serve its customers, it remains a reliable choice for long-term investors seeking steady returns.