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Key Takeaways:
- Verizon offers a 6.4% dividend yield, one of the highest among large-cap stocks.
- Analysts expect earnings to grow about 4% annually through 2027, with dividends projected to rise at a modest 2% per year.
- Based on analysts’ consensus estimates, the stock could deliver 16.2% total returns by 2027, supported by improving margins and free cash flow generation.
Verizon is one of the largest telecommunications companies in the U.S., providing mobile services, broadband internet, and nationwide network infrastructure to tens of millions of customers.
Its business is built on long-term wireless contracts, stable recurring revenue, and extensive physical assets that support reliable cash generation.
While the stock has lagged in recent years due to competitive pressures and muted growth, 2025 marks a more stable operating environment.
And while it Verizon isn’t trading at fire-sale levels, Verizon remains one of the highest-quality high-yield dividend stocks available today.
With major 5G investments largely behind it, Verizon is entering a phase focused on operational discipline, capital efficiency, and strategic cash returns.
For income-focused investors looking for reliability over rapid growth, Verizon might still deserve a place on your watchlist.
Analysts Think the Stock is Undervalued Today
Verizon shares currently trade around $43, but based on analysts’ consensus estimates, the stock could reach about $50 by the end of 2027.
That implies total returns of 16.2%, or about 6.4% per year including dividends, if Verizon continues to grow earnings steadily.
6% annual returns really aren’t that impressive, but Verizon is still a high-quality, high-yield dividend stock, and likely wouldn’t be a bad holding for long-term dividend investors.
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Verizon’s 6.4% Dividend Yield Signals Pessimism, Not Risk
Verizon’s forward dividend yield sits at 6.4%, well above its 5-year average of 6.0% and among the highest in the S&P 500.
Despite consistent dividend hikes and improving free cash flow, the stock remains under pressure due to market concerns over competitive pricing, wireless subscriber growth, and limited top-line expansion.
Yet, unlike many high-yield stocks where payouts are at risk, Verizon’s dividend is backed by highly stable and recurring cash flows.
Verizon serves over 90 million postpaid wireless subscribers, with low churn rates and monthly billing that provide predictable revenue. Its broadband segment continues to grow, adding to that dependable base.
Verizon has raised its dividend for 18 consecutive years, a track record that reflects financial discipline even through challenging market conditions.
This combination of durable cash generation and measured capital allocation has allowed Verizon to sustain one of the highest yields in the large-cap space, while still reducing debt and investing in its core network.
For long-term income investors, the current yield offers a strong balance of income and dividend stability.
Find high-quality dividend stocks that look even better than Verizon today. (It’s free) >>>
Dividend Backed by $20B in Free Cash Flow and 4% Earnings Growth Through 2027
Verizon is expected to earn $4.70 per share in 2025 and pay out $2.73 in dividends. That gives it a payout ratio of about 58%, which is very manageable for a mature business like Verizon.
By 2027, analysts expect earnings to climb to $5.05 per share, with dividends projected to rise to $2.83.
That implies EPS growth at a compound annual growth rate (CAGR) of about 3.6% and dividend growth of 1.7%, keeping the payout ratio around 56%.
What makes this even more attractive is the steady improvement in free cash flow. With 5G-related capital spending winding down, Verizon is expected to generate over $19.8 billion in free cash flow this year, growing to $21.5 billion by 2027.
That represents free cash flow growth at a compound annual growth rate (CAGR) of about 4.3%, giving the company flexibility to fund its dividend, reduce debt, and reinvest in strategic growth.
See Verizon’s full growth forecast and analyst estimates. (It’s free) >>>
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
