We recently released a list 15 Best High-yield Dividend Stocks in 2025 and beyond. In this article, we will explore where Verizon Communications Inc. (NYSE:VZ) represents with other best high-yield dividend stocks.
Over the years, stocks that pay dividends have become increasingly popular as investors tend to invest in income-focused investment strategies. Many conservative investors have pledged hundreds of billions of dollars in numerous funds because it is believed that companies that continue to raise dividends tend to bring the strongest long-term market performance.
According to Ed Clissold, researched by Ned Davis, 80% of companies in the wider market are currently paying dividends, with 324 of them starting or increasing spending in the past year. Interestingly, it was the earlier research of Clissold's company that helped spark widespread interest in dividend growth stocks. The study is based on an older method of return calculation that has been widely replicated, highlighting the strong performance of companies that regularly increase dividends.
But as the company has updated its approach to industry changes, the results show that while dividend growers perform well, it may make more sense to focus on high-yield dividend stocks. Since 1973, this yield-based strategy has outperformed dividend growers in both rising and falling markets. Financial advisers believe that investors first need to check the dividend yield of the stock, which is determined by dividing the annual dividend by the stock's current price. This figure shows the income investor invests in stocks per dollar.
However, high dividend yields tend to lead to higher volatility and more frequent portfolio turnover. This is not always a positive signal. Sometimes it can mark trouble, especially when stock prices are driven by a drop in value. In these cases, companies may reduce the risk of their dividend payments, which usually occur during financial stress. The consultant stressed the need to go beyond the surface level metrics and examined the company’s core finances to assess its overall stability and strength. Jason Alonzo, managing director of Harbor Capital Advisors, commented on investing in dividend stocks:
“Ensure that the company has a strong balance sheet and the prospect of EPS growth is strong, so even with a recession, the company has a good place to maintain dividend payments in the future.”
While the debate between dividend growth and high yields continues, analysts stress that dividend stocks are not all the same. Stocks that offer stable output as well as stable dividends often reflect strong fundamentals because they believe the company can reward shareholders while still investing in future growth. Dividend payment ratios play a crucial role in evaluating the flexibility of a company's dividend policy. Companies that use almost all of their revenue to pay dividends, or earn little to no income to maintain these dividends, may face challenges, especially under competitive pressures, which are unable to operate support due to limited cash flows.
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In this article, we use screeners to identify dividend companies with higher than average dividend yields. From there, we chose companies that increased their spending for 10 consecutive years, which demonstrated their long-term growth. Finally, as of May 9, we selected 15 stocks with the highest dividend yield and ranked them accordingly.
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As of May 9: 6.21%
Verizon Communications Inc. (NYSE: VZ) is an American telecommunications company headquartered in New York. The company is the U.S. wireless provider with the largest number of subscribers, with 146 million users as of the end of 2024. It also provides home internet services along with its mobile operations.
In the first quarter of 2025, Verizon Communications Inc. (NYSE:VZ) reported revenue of $33.5 billion, up 1.5% from the previous year, surpassing analysts' expectations of $204.3 million. Its mobility and broadband divisions performed well, with wireless services reaching a market-leading $20 billion in revenue. Verizon also recorded the highest core prepaid net since its acquisition of TracFone. On the broadband side, the company continues to expand its market share, driven by strong absorption of its FIO and fixed wireless access products.
Verizon Communications Inc. (NYSE:VZ)'s financial position remained stable, generating $7.8 billion in operating cash flow - increasing free cash flow from $2.7 billion to $3.6 billion starting from $7.1 billion in the same period last year. This strong cash flow supports Verizon's dividend growth for the 18th consecutive year, making it one of the best dividend stocks on our list. The company paid a quarterly dividend of $0.6775 per share, with a dividend yield of 6.21% as of May 9.
Overall, VZ Ranked third On our list of the best high yield dividend stocks. Although we acknowledge the potential of VZ as an investment, our belief lies in the belief that certain undervalued dividend stocks have greater hope to offer higher returns and do so in a shorter time frame. If you are looking for more promising undervalued dividend stocks than VZ, but earning 10 times each year and growing in double-digit earnings annually, check out our report Dirt cheap dividend stocks.
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Disclosure: None. This article was originally published in Inside monkey.