Want to understand how much Verizon pays in dividends and how you can potentially benefit? You've come to the right place! Diving into the world of dividend stocks like Verizon can be a fantastic way to generate passive income, but it's essential to understand the ins and outs. This comprehensive guide will walk you through everything you need to know about Verizon's dividends, from how much they pay to how you can become a proud dividend-earning shareholder.
Understanding Verizon's Dividend: A Step-by-Step Guide
Verizon Communications Inc. (VZ) is a well-known telecom giant, and for many investors, its consistent dividend payments are a significant draw. Let's break down what that means for you.
 |
| How Much Is Verizon Dividend |
Step 1: What is a Dividend, and Why Does Verizon Pay One?
Before we dig into the specifics of how much Verizon pays, let's ensure we're all on the same page.
What is a Dividend? Imagine a company makes a profit. Instead of reinvesting all of it back into the business, they decide to share a portion of those profits with their shareholders. That portion is called a dividend.
It's essentially a reward for owning a piece of the company. Why does Verizon pay dividends? Companies like Verizon, often established and financially stable, pay dividends to attract and retain investors. It signals financial health and provides a consistent income stream, making their stock appealing to those seeking regular returns, especially in retirement or for income generation.
Verizon has a long history of paying dividends, having done so since 1984, and has consistently increased its dividend for 21 consecutive years. This demonstrates a commitment to returning value to shareholders.
Step 2: How Much is Verizon's Dividend Per Share?
This is often the first question on everyone's mind! Verizon typically pays its dividends on a quarterly basis.
Current Quarterly Dividend: As of the most recent declarations, Verizon's quarterly dividend per share is $0.6775.
This amount has been consistent for the immediate upcoming payments. Annual Dividend: To calculate the annual dividend, you simply multiply the quarterly dividend by four. So, $0.6775 * 4 = $2.71 per share annually. This means for every share of Verizon stock you own, you can expect to receive $2.71 in dividends over a year, assuming the dividend remains constant.
Step 3: What is Verizon's Dividend Yield?
Tip: Reading on mobile? Zoom in for better comfort.
While the dollar amount is important, the dividend yield gives you a better idea of the return on your investment relative to the stock price.
What is Dividend Yield? Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price.
It's expressed as a percentage. Formula: Dividend Yield = (Annual Dividend Per Share / Current Stock Price) * 100
Verizon's Current Dividend Yield: Verizon's dividend yield is approximately 6.22%. This means that for every $100 invested in Verizon stock, you would receive roughly $6.22 in dividends per year. Keep in mind that stock prices fluctuate, so the yield will also fluctuate. A higher yield can be attractive for income-focused investors, but it's also important to consider the underlying company's stability.
Step 4: Understanding Key Dividend Dates (The Calendar Matters!)
To receive a dividend, you need to own the stock at specific times. These dates are crucial:
Declaration Date: This is the date when Verizon's Board of Directors announces that they will pay a dividend. They specify the amount, the ex-dividend date, and the payment date.
Example: The quarterly dividend payable on August 1, 2025, was declared on June 6, 2025.
Ex-Dividend Date: This is arguably the most important date for investors looking to receive the dividend. If you buy the stock on or after the ex-dividend date, you will not be eligible to receive the upcoming dividend payment.
If you own the stock before the ex-dividend date, you will receive the dividend. For the upcoming dividend payment on August 1, 2025, Verizon's ex-dividend date is July 10, 2025. So, you would need to own Verizon stock before July 10, 2025, to receive that particular dividend payment.
Record Date: This is the date on which the company reviews its records to identify shareholders who are eligible to receive the dividend. It typically follows the ex-dividend date.
Payment Date: This is the date when the dividend is actually paid to eligible shareholders.
The next dividend payment date for Verizon is planned for August 1, 2025.
Step 5: Examining Verizon's Dividend Payout Ratio and Safety
A high dividend yield can be appealing, but it's important to assess if the dividend is sustainable. This is where the payout ratio comes in.
What is the Payout Ratio? The payout ratio indicates the percentage of a company's earnings that are paid out as dividends.
Formula: Payout Ratio = (Annual Dividend Per Share / Earnings Per Share (EPS)) * 100
Verizon's Payout Ratio: Verizon's payout ratio is approximately 63.59%.
What does this mean for dividend safety?
A payout ratio below 60% is often considered healthy, as it suggests the company has sufficient earnings to cover its dividends and reinvest in the business.
Verizon's payout ratio of around 63.59% indicates that a significant portion of its earnings is being returned to shareholders.
While it's slightly above the "ideal" 60%, Verizon's long history of increasing dividends (21 consecutive years) suggests a strong commitment and ability to maintain these payments. Investors should monitor this ratio for any significant changes.
Step 6: How to Buy Verizon Stock to Receive Dividends
Ready to potentially start earning those dividends? Here's the general process:
Open a Brokerage Account: You'll need an investment account with a brokerage firm (e.g., Charles Schwab, Fidelity, Vanguard, Zerodha, etc.).
Fund Your Account: Transfer money into your brokerage account.
Place a Buy Order: Search for "Verizon" or its ticker symbol "VZ." You can typically buy whole shares or even fractional shares (a portion of a share) through many brokerages, making it accessible even if you don't have enough to buy a full share.
Buy Before the Ex-Dividend Date: As highlighted in Step 4, ensure your purchase settles before the ex-dividend date to be eligible for the upcoming dividend.
Consider Dividend Reinvestment Plans (DRIPs): Many brokerages offer DRIPs, which automatically reinvest your dividends back into buying more shares (or fractional shares) of the same company.
This is a powerful way to compound your returns over time.
10 Related FAQ Questions
QuickTip: The more attention, the more retention.
Here are some quick answers to common questions about Verizon dividends:
How to check Verizon's latest dividend declaration?
You can usually find Verizon's latest dividend declarations on their official investor relations website or through financial news websites like Investing.com, Morningstar, or DividendMax.
How to find Verizon's ex-dividend date?
The ex-dividend date for Verizon is readily available on financial data websites (e.g., Koyfin, Investing.com) and the company's investor relations page. For the upcoming August 1, 2025 payment, the ex-dividend date is July 10, 2025.
How to calculate my expected Verizon dividend payment?
Multiply the number of Verizon shares you own by the current quarterly dividend per share ($0.6775).
QuickTip: Slow down when you hit numbers or data.
How to set up dividend reinvestment for Verizon stock?
Most brokerage accounts offer a Dividend Reinvestment Plan (DRIP) option. You can typically enable this feature within your online brokerage account settings for your VZ shares.
How to understand if Verizon's dividend is safe?
Assess the dividend payout ratio (currently around 63.59%) and Verizon's long history of consistent dividend increases (21 consecutive years).
How to compare Verizon's dividend to other telecom companies?
Look up the dividend yield and payout ratio for other major telecom companies (e.g., AT&T, T-Mobile) and compare them to Verizon's. This will help you see how VZ stands relative to its peers.
How to know when Verizon pays its dividends?
Verizon typically pays dividends on a quarterly basis.
Tip: Don’t skip the small notes — they often matter.
How to get dividend alerts for Verizon (VZ)?
Many financial news websites and brokerage platforms offer email or push notification alerts for dividend declarations and important dates for stocks you follow.
How to find Verizon's historical dividend payments?
You can find a comprehensive history of Verizon's dividend payments on financial data websites (like Companies Market Cap, DividendMax, or Morningstar) by searching for the ticker symbol VZ.
How to factor dividends into my overall investment strategy for Verizon?
Dividends can contribute to your total return, especially for long-term investors.
 |
💡 This page may contain affiliate links — we may earn a small commission at no extra cost to you.
