Verizon dividend: cash coverage
Verizon paid $11,481 million in dividends in 2025 against $19,676 million of free cash flow. Verizon's current quarterly rate is $0.7075, while 2025 real free cash flow was $18,861 million.
How much does Verizon pay its shareholders?
Dividends are $2.83 per share in the first period for all cases because the current quarterly rate is $0.7075. The base case then rises to $2.90 and $2.97, matching approximately 2.5% annual increases and the company’s long record of increases. The bear case freezes at $2.83 because debt and investment compete for cash; the bull case reaches $2.97 and $3.11 because stronger cash generation supports approximately 5% increases.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow per share | 4.65 | 4.48 | 3.06 | 2.47 | -6.83 |
| − Dividends paid, per share | 2.71 | 2.66 | 2.62 | 2.57 | 2.52 |
| = FCF not paid out, per share | 1.82 | 1.72 | 0.35 | ||
| = Paid out more than FCF, per share | 0.22 | 9.48 |
Is Verizon's dividend covered by its cash?
The position improved unevenly. By 2025, free cash flow reached $19,676 million, while dividends were $11,481 million. Verizon had cash left after payouts, and it made no share repurchases during these five years. In 2025, gross debt rose even as broader net debt edged down because cash and short-term investments also increased.
Operating cash was $37,137 million in 2025. After capital spending including wireless licences of $17,461 million, free cash flow was $19,676 million. Subtracting $815 million of stock compensation gives analytical “real free cash flow” of $18,861 million. Employees receive shares instead of cash, but existing shareholders bear dilution.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 19,676 | 18,922 | 12,912 | 10,401 | -28,343 |
| − Dividends paid | 11,481 | 11,249 | 11,025 | 10,805 | 10,445 |
| − Share buybacks | 0 | 0 | 0 | 0 | 0 |
| = Free cash flow not paid out | 7,699 | 7,248 | 1,456 | ||
| = Paid out more than the free cash flow | 929 | 39,361 |
What could change Verizon's dividend?
Management guides to 2.5%–3.0% mobility and broadband service-revenue growth in 2026, with 4.0% growth in the fourth quarter. Its adjusted-EPS target is $4.99–$5.04, with expected growth of 6.0%–7.0%. It targets 875,000–1,000,000 retail postpaid phone net additions and $16,000 million–$16,500 million of capital expenditures. It also targets at least 2,000,000 fiber passings in 2026.
What is Verizon's dividend yield today against its price?
At $42.78, the shares value Verizon at about $178 billion. Its trailing P/E, or price divided by recent earnings per share, is 11.1x. The forward P/E is 8.2x, but that cheaper figure depends on expected earnings rather than money already earned.
| Today (Oct 13, 2026) | |
|---|---|
| Share price | 42.78 |
| Market value (calculated) | 177,741.28 |
| Free cash flow yield (calculated) | 11.1% |
| Dividend yield (calculated) | 6.6% |