Verizon Communications (VZ 5.11%) has millions of consumers and businesses paying recurring bills for phone plans, internet, and connectivity services. The stock's 5.82% forward dividend yield looks attractive, offering about $58 in annual income on a $1,000 investment. Even better, new leadership is executing a strategy to improve the company's performance, making the stock a potentially timely buy in 2026.
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Verizon posted a solid start to the year. Revenue rose 2.9% year over year, and free cash flow increased 4% to $3.8 billion. The wireless market is intensely competitive, but Verizon is holding its ground. It added 55,000 postpaid phone subscribers and saw growth in internet broadband and fiber.
NYSE: VZ
Key Data Points
Verizon has generated growing revenue in recent years. It has 96 million postpaid connections, reflecting the number of people on phone plans. That stability supports steady free cash flow, which totaled nearly $20 billion in 2025. The company paid out 58% of that in dividends, leaving ample room to sustain and increase the quarterly payout.
New CEO Dan Schulman is shifting the sales mix away from lower-margin lines and toward more profitable, recurring-revenue services. The strategy prioritizes increasing lifetime customer value instead of relying on promotions to boost short-term results.
If that approach works, Verizon could remain stable while maintaining steady revenue growth -- and, importantly, generate higher free cash flow and dividends. With those prospects and an already strong yield, it's a solid high-yield stock to consider right now.
