Verizon stock jumps as outage hits users and VZ dividend yield flirts with 7%
14 January 2026
2 mins read

Verizon stock jumps as outage hits users and VZ dividend yield flirts with 7%

NEW YORK, Jan 14, 2026, 14:44 EST

  • Shares of Verizon climbed in afternoon trading while the carrier scrambled to resolve a widespread network outage.
  • Verizon’s dividend yield nudged above 7% on Tuesday after a brief dip, hitting a mark that often attracts yield-seeking investors.
  • Verizon’s next quarterly dividend will be paid on Feb. 2, with earnings scheduled for release Jan. 30.

Verizon Communications Inc (VZ) shares climbed roughly 1.9% to $39.74 in afternoon trading Wednesday as the company scrambled to fix a network outage. Downdetector recorded over 130,000 problem reports around 1:11 p.m. ET, though the site warns user reports can exaggerate the actual number of affected users. Reuters

The outage hits especially hard for a stock favored more for income than growth. When the service falters, it strains the one area a wireless carrier can’t just spin its way through: reliability.

Verizon’s dividend yield has climbed close to 7% following a recent dip in its stock price. On Tuesday, shares hit $38.90, pushing the yield above 7%, Nasdaq reported. The dividend payout itself stayed the same. Remember, dividend yield is calculated by dividing the annual cash payout per share by the current share price. Nasdaq

Verizon hands out 69 cents per share every quarter, totaling $2.76 annually at the current rate. The next dividend hits on Feb. 2 for shareholders recorded by Jan. 12. CEO Dan Schulman described the payout as “an iron clad reflection” of the company’s dedication to its investors. Verizon also noted it has roughly 4.2 billion shares outstanding and dished out over $11.2 billion in cash dividends in 2024. Verizon

With that payout, you’d need around 362 shares to pull in roughly $1,000 a year in dividends, assuming a share price of $40.66 as of Jan. 9, The Motley Fool reported. Fool

Trading near $39.74 on Wednesday, the stock’s annual dividend suggests a yield close to 6.9% at today’s price. But that yield shifts quickly with even a one-dollar change in the share price.

Income investors are eyeing Jan. 30, when Verizon will unveil its fourth-quarter 2025 results. Beyond the headline earnings, cash flow and customer trends will be key for those focused on the dividend. Verizon

Regulators are stepping in as well. This week, the FCC updated a rule that had previously forced Verizon to unlock phones 60 days after activation. Verizon argued that fraud was draining hundreds of millions of dollars, reporting losses on an estimated 784,703 devices in 2023 alone. FCC Chair Brendan Carr pointed to criminal networks exploiting the unlocking rules for serious crimes like “drug running and human smuggling.” Reuters

Schulman, previously PayPal’s top executive, stepped in as CEO last October and is pushing for a reset focused on sharper execution and improving customer satisfaction. “Verizon is at a critical juncture,” he remarked when the company revealed the leadership change. Verizon

But the hefty yield isn’t without risks. A lengthy outage, steeper discounting from AT&T and T-Mobile, or rising financing expenses could tighten free cash flow, limiting Verizon’s ability to boost its dividend further.

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