Investing in shares of companies that steadily increase their dividends over time can help build a reliable stream of income within your portfolio. These dividend growers are backed by financially sound businesses with stable cash flows and a focus on rewarding shareholders. Their commitment to regular and rising payouts not only adds stability, but also enhances the long-term income potential for investors.

What makes these stocks compelling is the built-in defense they provide against inflation. As dividends grow, they help preserve purchasing power, offering a cushion in times of rising prices. Moreover, if those dividends are reinvested, the effects of compounding can help generate significant returns over time.

In this context, Verizon (VZ) emerges as a particularly appealing option. The communications services provider has a long track record of dividend increases, reflecting its financial strength and shareholder-friendly moves. With a high dividend yield of 6.5%, Verizon offers attractive income today and the potential for that income to grow in the future.

Verizon: A Steady Dividend Grower with 18 Years of Growth

Verizon is known for rewarding its shareholders with higher dividend payments. The communications giant has raised its dividend for an impressive 18 consecutive years, a reflection of its financial strength and disciplined approach to shareholder returns.

Verizon continues to grow its wireless service revenues while expanding its adjusted EBITDA and generating strong free cash flow. These factors provide Verizon the financial strength and flexibility to sustain and increase its dividend, even in a competitive and capital-intensive industry.

In the third quarter of 2024, the company increased its quarterly dividend by 1.9%, moving it from $0.6650 to $0.6775 per share. While the increase may seem modest, it reflects a steady upward trend that investors can rely on year after year.

In 2024, Verizon returned a total of $11.2 billion to shareholders through dividends, up from $11 billion the previous year. That momentum has carried into 2025, with the company already distributing $2.9 billion in dividends in the first quarter.

Verizon to Extend Its Dividend Growth Streak

Verizon’s growing subscriber base, steady earnings growth, robust cash flows, and a strong balance sheet position it well to maintain and expand its dividend. Looking ahead to 2025, the momentum in Verizon’s business remains intact. The company’s total wireless service revenue rose 2.7% to $20.8 billion in the first quarter, while adjusted EBITDA hit a record $12.6 billion, up 4% year over year. Its free cash flow climbed over $900 million to reach $3.6 billion. These solid numbers reflect Verizon’s ability to fund both strategic investments and shareholder returns.

Verizon’s expanding portfolio of services and recent strategic initiatives are expected to drive long-term growth. Over the past year, the company has refreshed its brand and continued to evolve customer-centric offerings. These initiatives, coupled with organic growth and strategic moves such as the pending acquisition of Frontier (FYBR), are expected to drive both subscriber and financial growth.

The company is also advancing its 5G capabilities, aiming to deploy C-band spectrum across 80% to 90% of its planned sites by year-end. These upgrades are expected to enhance both network performance and customer experience, ultimately leading to increased average revenue per user and a larger subscriber base.

Verizon’s fixed broadband strategy is also gaining ground. On the wireless broadband front, its fixed wireless access (FWA) remains a significant growth engine.

Verizon saw year-over-year improvement in total postpaid and prepaid phone additions. Further, Broadband growth continues to impress, with the company consistently taking market share. Verizon’s consumer and business segments are both showing encouraging progress. The consumer group is witnessing a multi-year transformation aimed at improving margins and efficiency. Meanwhile, the business segment is experiencing strong momentum, particularly in private wireless networks, having secured over a dozen new deals in the latest quarter.

Overall, Verizon is expected to continue growing its adjusted EBITDA and free cash flow, which will support future dividend growth.

Bottom Line: Verizon Is a High-Yield Stock with a Reliable Dividend

Verizon is a reliable income-generating investment with strong fundamentals and a consistent track record of dividend growth. Its 6.5% dividend yield, coupled with 18 consecutive years of increases, reflects the company’s financial strength and long-term commitment to shareholders.

While Wall Street analysts have a “Moderate Buy” consensus rating on Verizon stock, its solid free cash flow, expanding 5G infrastructure, and strategic growth initiatives positions the company to sustain and grow its dividend in the years ahead.