Telecommunications giant Verizon Communications (VZ) offers one of the biggest dividend payments among stocks in the S&P 500 index.
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VZ stock currently pays its shareholders a quarterly distribution of $0.71, giving it a chunky yield of 5.94%. The company, which provides wireless internet service across the U.S., has raised its dividend for 22 consecutive years.
Verizon most recently hiked its quarterly dividend by 3% in January of this year. On a full-year basis, shareholders receive $2.84 for each share they own. Analysts say the dividend looks sustainable given that it accounts for just over half of Verizon’s estimated $4.89 in 2026 profits.
Verizon’s Stock Performance
The dividend yield on VZ stock dwarfs other telecommunications companies, most of which pay distributions that yield around 2%. Verizon has committed itself to a hefty dividend as its share price has languished in recent years.
Over the past five years, VZ stock has tumbled 17% lower to trade at around $48 per share. However, the stock appears to be on an upswing, having gained 18% so far in 2026. The stock also looks affordable, even undervalued, trading at 11 times future earnings estimates, which is about half the average among S&P 500 stocks.
Is VZ Stock a Buy?
Verizon’s stock has a consensus Moderate Buy rating among 17 Wall Street analysts. That rating is based on seven Buy and 10 Hold recommendations issued in the last three months. The average VZ price target of $50.97 implies 7.03% upside from current levels.
