Given that there are so many blue chip dividend stocks If these are older companies in the defensive or value sectors, investors could be forgiven if they don’t readily associate dividends with fast short-term profits.
On that note, it is no exaggeration to say that Verizon Communications (VZ 1.78%) Typically doesn’t top investors’ “millionaire maker” lists. The telecom giant may not be on those lists at all, especially as many new market participants are maturing amid their extended leadership. growth stock.
Verizon’s free cash flow supports a dividend that could be a wealth enhancer. Image Source: Getty Images.
Still, even the most growth-minded investors should consider some dividend risk. From 1957 to May 2025, almost a quarter of dividends were S&P 500‘S Average Monthly Returns. Sometimes the percentage is higher, and sometimes it’s lower, but the point is that dividends are helpful in investors’ quest to reach the seven-figure club, which could increase Verizon’s attractiveness.
Dial up dividend yield, growth with Verizon
a reason Verizon Stock It has so many fans in the equity income community that it has a 6.12% dividend yield, which is almost 6 times the amount investors earn on the basic S&P 500 index fund.
Dividend yields can be attractive, and not always in a positive way. Sure, when that metric is high, it can draw attention to a stock, but yield alone doesn’t paint a complete picture of a company’s payout stability. Indeed, increased yields can be red flags, signaling to investors that the financially strapped companies that generate these yields may be close to a dividend cut or suspension.
Fortunately for investors looking for Verizon’s valuation potential to grow wealth, this stock is not a yield trap. This is actually a dividend growth story, as highlighted by the 19-year payout growth streak. Investors want that kind of dependable dividend, and that reliability is important in evaluating Verizon’s money-making capabilities.
today’s change
(-1.78%) $-0.84
current price
$46.38
key data points
market cap
$196B
day limit
$46.38 -$47.34
52wk range
$38.39 -$51.68
volume
27m
average volume
31 m
gross margin
45.79%
dividend yield
5.96%
The good news: This dividend and its potential growth are supported by an impressive free cash flow trajectory. In 2025, Verizon projects $20.1 billion of free cash flow, up from $19.8 billion a year earlier. The company projects free cash flow of at least $21.5 billion in 2026, which would be good for the highest level since 2020.
answerable dividend call
Among dividend stocks that can help patient investors grow their net worth, Verizon is worth answering a call. The growing free cash flow above confirms this, as last year the company directed 60% of that cash flow towards dividends.
Verizon also expects net leverage to fall to management’s desired range at some point in 2027, even if it buys back shares this year. For investors who want more near-term information about cash flow and debt reduction, Verizon may shed light on those issues when it reports first-quarter results on April 27.
