Verizon dividend yield breaks 7% as VZ slides — what $1,000 a year in payouts now takes

Verizon Communications’ dividend yield climbed above 7% Tuesday when the stock hit $38.90, holding near that price on Wednesday. By early afternoon in New York, Verizon had risen roughly 1.6% to $39.65. Shares of AT&T and T-Mobile also edged higher.

New York, Jan 14, 2026, 13:56 (EST)

  1. Verizon’s dividend yield jumped past 7% when its shares touched $38.90 on Tuesday.
  2. Verizon shares climbed roughly 1.6% by Wednesday afternoon, hovering around $39.65.
  3. Verizon will pay its next quarterly dividend of $0.69 per share on Feb. 2, following the Jan. 12 ex-dividend date.

Verizon Communications’ dividend yield climbed above 7% Tuesday when the stock hit $38.90, holding near that price on Wednesday. By early afternoon in New York, Verizon had risen roughly 1.6% to $39.65. Shares of AT&T and T-Mobile also edged higher.

This shift is significant today because such a jump in yield typically reflects price changes, not increased payouts. Dividend yield equals the annual cash payment per share divided by the stock price, so if shares drop, the yield can spike sharply without the company altering its dividend.

Verizon declared its most recent quarterly dividend on Dec. 4, with a payment scheduled for Feb. 2, per its investor relations site. The stock went ex-dividend on Jan. 12, meaning investors buying after that date won’t get the upcoming payout.

A recent Motley Fool analysis broke down the numbers: owning about 362 shares would net you roughly $1,000 annually, assuming Verizon sticks with its $0.69 quarterly dividend. At the $40.66 price on Jan. 9, that’s an investment near $14,732. The author called Verizon “unlikely to become a growth stock.” They also highlighted Verizon’s 146.1 million retail connections as of Q3 2025, while pointing out the stock has dropped 30% over five years, compared to the S&P 500’s 82% gain. The Motley Fool

Verizon closed Tuesday down 2.08% at $39.01, dragged lower amid a broad market slump that saw the S&P 500 and Dow also retreat, according to MarketWatch data. AT&T dropped 1.85%, while T-Mobile slid 3.97% on the day.

Verizon’s dividend is carrying much of the weight these days. The company’s mature operations demand heavy spending on network upgrades, while it battles for customers in a fiercely competitive U.S. wireless market where switching incentives are anything but subtle.

Yields above 7% often signal caution rather than opportunity, since they rise when stock prices drop—and dividends aren’t guaranteed. Dividend Channel pointed out that payouts usually follow profits, which fluctuate with competition, costs, and investment cycles.

Verizon’s dividend currently stands at $2.76 per share annually, translating to just under 7% based on Wednesday’s stock price. That yield keeps the stock attractive for income investors focused on immediate cash returns rather than future growth stories.

The question is whether the market sees the dividend as a steady anchor or a looming question mark. If the shares hold steady, the yield slowly falls; if the stock remains under pressure, that headline yield jumps out — along with the mounting doubts it brings.

Shan Ahmed Khan

Shan Ahmed Khan is a senior markets reporter at TS2.tech. His coverage ranges from stocks and technology to economic developments across global markets. He worked in investment research and market analysis before becoming a financial journalist and is a graduate of the Lahore University of Management Sciences (LUMS).

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