Verizon’s (VZ) Growing Cash Flow Continues to Support its Dividend

Verizon Communications Inc. (NYSE:VZ) is included among the 15 Best Dividend Paying Stocks to Buy Right Now. 

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Verizon Communications Inc. (NYSE:VZ) is a holding company that, through its subsidiaries, provides communications, technology, information, and streaming services to consumers, businesses, and government customers.

A key strength of Verizon’s business is its recurring revenue model, as millions of customers rely on the company for wireless service, internet access, and connectivity solutions, generating a steady stream of monthly revenue. The stock currently offers a forward dividend yield of 5.82%, which translates to roughly $58 in annual income on a $1,000 investment. With a new leadership team focused on improving operations and growth, the stock could be well-positioned for investors looking ahead to 2026.

The company began the year on a solid footing. First-quarter revenue increased 2.9% from a year earlier, while free cash flow rose 4% to $3.8 billion. Despite intense competition across the wireless industry, Verizon continued to hold its position in the market. The company added 55,000 postpaid phone subscribers during the quarter and also reported growth in its broadband internet and fiber businesses.

Verizon has steadily expanded its revenue base over the past several years. It now serves 96 million postpaid connections, underscoring the scale of its customer network. That stability has translated into strong cash generation, with free cash flow reaching nearly $20 billion in 2025.

Verizon Communications Inc. (NYSE:VZ) used 58% of that amount to fund dividend payments, leaving meaningful flexibility to support the current payout and potentially increase the quarterly dividend over time.

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