Verizon Communications reports third-quarter results before the market opens on Monday, October 26. For income investors, the headline earnings matter less than the cash flow and subscriber trends that stand behind a $2.83 annualized dividend yielding roughly 6.3 percent.
The setup
Verizon arrives with its dividend machinery in steady motion. The board declared the current 70.75 cent quarterly payout on September 9, payable November 2 to shareholders of record on October 9. The company paid roughly $11.5 billion in cash dividends during 2025 across about 4.2 billion shares.
Shares traded near $44.61 in recent sessions. The stock has climbed well off its 52-week low of $38.39 but still sits below the $51.68 high. Management points to 20 consecutive years of dividend increases as the track record investors are buying.
Key numbers ahead of the report
| Item | Figure |
|---|---|
| Report date | Monday, October 26, pre-market |
| Quarterly dividend | $0.7075 per share |
| Annualized dividend | $2.83 per share |
| Recent share price | $44.61 |
| Indicated yield | About 6.3% |
| Consensus adjusted EPS estimate | About $1.27 per share |
| Full-year adjusted EPS guidance | $4.99 to $5.04 |
Full-year adjusted EPS guidance of $4.99 to $5.04 covers the dividend with a payout ratio near 56 percent. That cushion matters for a telecom that spends heavily on network infrastructure every year.
What income investors should watch
- Free cash flow against the payout. Verizon paid roughly $11.5 billion in dividends last year, so quarterly cash generation sets the margin of safety.
- Postpaid phone momentum. The company posted its first positive first-quarter postpaid phone additions since 2013 earlier this year and raised guidance on the strength.
- Dividend commentary. With 20 straight years of increases, investors will listen for hints about the size of the next raise.
- Competition. Early-October reports that SpaceX would acquire 800 MHz of spectrum to enter U.S. mobile service pressured telecom shares across the sector.
Income math for the dividend
| Income scenario | Approximate value |
|---|---|
| Shares per $100,000 at $44.61 | 2,242 shares |
| Annual dividend income per $100,000 | $6,345 |
A $100,000 position at recent prices generates roughly $6,345 in annual dividend income. Few large-cap names combine a yield above 6 percent with two decades of annual raises.
Risks to watch
Spectrum competition tops the list. A deep-pocketed entrant into U.S. wireless would pressure industry pricing over time. Rising Treasury yields also matter, since they raise Verizon’s borrowing costs and narrow the appeal gap between a 6.3 percent yield and risk-free alternatives.
Common mistakes dividend investors make
- Chasing the headline yield. A 6.3 percent yield only helps if the cash flow behind it holds, so read the payout ratio before buying.
- Ignoring rate competition. Treasury yields above 5 percent set the bar any dividend stock must clear on a risk-adjusted basis.
- Buying before earnings without a plan. Decide in advance whether a guidance miss would change the position.
Bottom line
Monday’s report is unlikely to move the dividend itself. The real question is whether subscriber momentum and free cash flow keep supporting a payout that income investors have relied on for two decades.
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