Will Verizon End Its High Dividend Streak?
With a yield of just over 6.5%, Verizon’s (NYSE:VZ | VZ Price Prediction) dividend is still safe. For one, the company has always had a stable history of paying dividends. In recent years, the…
Live update #6
Markets Open and Conference Call Concluded
From live coverage: Live: Verizon (NYSE: VZ) Soars After Q2 Earnings
Verizon opened the day up 2.52% and the conference call just ended and here are a few quotes from management.
“Our strong first half results reaffirm our confidence in Verizon’s strategy.”
— Hans Vestberg, CEO
“Adjusted EBITDA was $12.8 billion — the highest we have ever reported.”
— Tony Skiadas, CFO
“We’re raising our guidance for free cash flow to $19.5 to $20.5 billion. That’s being driven by strong operational execution and benefits from tax reform.”
— Tony Skiadas, CFO
“We’re not chasing unprofitable growth. Volumes are important, but not at the expense of margin.”
— Tony Skiadas, CFO
“Our AI Connect funnel has nearly doubled to $2 billion — these are large, complex deals that will take time, but demand is real.”
— Hans Vestberg, CEO
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More From This Coverage
Newest firstAfter more color during the call we have a clear look at the rest of the fiscal year.
| Metric | Previous | New (Q2 Raised) |
|---|---|---|
| Adj. EBITDA Growth | ~Flat | 2.5% – 3.5% |
| Adj. EPS Growth | Flat | 1.0% – 3.0% |
| Free Cash Flow | ~$18.5B | $19.5B – $20.5B |
| Operating Cash Flow | ~$35B | $37B – $39B |
| CapEx | $17.5–18.5B | Unchanged |
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Cash Flow Is the Headline
Verizon posted $8.8B in free cash flow for the quarter (up 56% YoY), and raised full-year guidance to as much as $20.5B. This puts them on solid footing to keep raising the dividend and pay down debt — two of management’s top priorities. -
Fiber + Fixed Wireless + Frontier = Scale
Verizon now has 5M+ fixed wireless subs, and the Frontier deal remains on track for early 2026. Management expects this to meaningfully accelerate broadband and fiber penetration — especially in suburban and rural markets. -
AI Is a Real Revenue Driver in the Making
Verizon’s AI Connect sales pipeline has doubled since launch. Though deals are complex and long-cycle, leadership sees this as a major edge, powered by Verizon’s dense fiber and edge infrastructure.
With an hour to go before the markets open, Verizon is still up 3.62% in pre-market trading after turning in a great quarterly report. We will have updates on the conference call this morning and if you wish to tune in, you can access the webcast here.
Verizon’s dividend now sits well over 6% and management is committed to its slow but steady growth rate of around 2% per year. This quarter’s earnings and increased guidance on free cash to $20 billion should keep the stock steady on its dividend growth path forward.
| Year | Annual Dividend | Notes |
|---|---|---|
| 2021 | $2.535 | $0.6275 → $0.64/qtr |
| 2022 | $2.585 | $0.64 → $0.6525/qtr |
| 2023 | $2.635 | $0.6525 → $0.6650/qtr |
| 2024 | $2.685 | $0.6650 → $0.6775/qtr |
| 2025 YTD | $1.355 | Two quarters at $0.6775/qtr |
Here’s how Verizon’s growth rates for Q2 look:
| Metric | Q2 25 | Q2 24 | YoY Change |
|---|---|---|---|
| Revenue | $34.50B | $32.80B | 5.21% |
| Net Income | $5.12B | $4.59B | 11.50% |
| Cash And Equivalents | $3.44B | $2.43B | 41.24% |
| Total Assets | $383.29B | $379.15B | 1.09% |
| Total Liabilities | $217.97B | $281.61B | -22.60% |
| Shareholders Equity | $104.36B | $96.17B | 8.51% |
| Operating Cash Flow | $16.76B | $9.48B | 76.67% |
| Capital Expenditures | $7.95B | $3.86B | 106.09% |
| Free Cash Flow | $8.80B | $5.63B | 56.49% |
Verizon CEO Hans Vestberg said the strong Q2 performance reflects the company’s high-quality, industry-leading customer base, multiple growth paths and inherent strength. “With momentum and a clear path forward, we are raising our full-year guidance for adjusted EBITDA, adjusted EPS and free cash flow,” he added, reflecting a decidedly bullish outlook as VZ heads into the second half.
Verizon’s stock is now up 4.7% as of 7:13 a.m. ET, that’s a strong move for a stock like Verizon that’s now purchased mostly for its dividend yield.
Clearly, investors are impressed with last quarter, but the more important aspect of earnings driving this reaction is very likely the company’s raising of full-year guidance. The company now expects:
- Adjusted EBITDA5 growth of 2.5 percent to 3.5 percent.
- Adjusted EPS5 growth of 1.0 percent to 3.0 percent.
- Cash flow from operations of $37.0 billion to $39.0 billion.
- Free cash flow5 of $19.5 billion to $20.5 billion.
All this while capital expenditures stay at prior forecasts of $17.5 billion to $18.5 billion.
