Disclosure: This website may contain affiliate links, which means I may earn a commission if you click on the link and make a purchase. I only recommend products or services that I personally use and believe will add value to my readers. Your support is appreciated!
SHARE
The calculation to determine the number of Verizon shares required to gain $ 5,000 in annual income is simple.
However, the number is a motion target due to the high possibility that Verizon increases its dividend.
Verizon also offers investors a dividend, as evidenced by its performance beating on the market in 2025.
Verizon Communications(NYSE: VZ) is known for many things. Internet at high speed. A large network. Reliable cover. But if you are an investor, the main thing you think when Verizon is mentioned is the company’s dividend.
Due to its ultra-high dividend yield, Verizon is popular with income investors. You might be surprised to see how much a hugger participation in this stock of telecommunications can generate. Here is the number of actions from Verizon Communications that you must have to receive $ 5,000 in annual dividends income.
Image source: Verizon Communications.
Verizon is currently paying a quarterly dividend of $ 0.6775 per action in circulation. This results in $ 2.71 in annual dividend payments for each share of Verizon that you have.
Now determine the number of actions you would need to receive $ 5,000 in annual dividend income. Mathematics are simple. All we need to do is divide $ 5,000 per $ 2.71 per share. This gives us the result of 1,845.018 actions.
If we train this number and you have bought 1,845 actions from Verizon, your annual income would be a nickel unless the objective of $ 5,000. If you bring together and buy 1,846 shares, your annual income would be $ 5,002.66. If you want to win exactly $ 5,000, you will have to use split actions (Although I doubt that many investors care about being so precise).
Whatever the exact number of shares you buy, you will need an important initial investment. To make the stadium of $ 5,000 in annual dividend income, you will have to buy around $ 81,000 from the action.
However, it is important to note that the number of Verizon shares that you must have to receive $ 5,000 in annual dividends income may be a goal in motion. The main variable is the amount of payment of the quarterly dividend from Verizon.
Verizon has increased its dividend for 18 consecutive years. The telecommunications giant announced its last increase in dividends in September 2024. If it increases the payment of dividends later this year, you will not have to have as many actions to gain $ 5,000 in annual income.
What is the probability that Verizon maintains its sequence of increasing dividends in progress? I think the chances are very good. Verizon Dividend distribution ratio is currently 64.23%. This level gives the company greater flexibility to increase its dividend in a few months if the board of directors chooses it.
Verizon’s available cash flows also indicate a strong position to increase the dividend. The company generated available cash flows of $ 3.6 billion in the first quarter of 2025, a big leap of 2.7 billion dollars during the period of the previous year. It plans to provide cash flows available between $ 17.5 billion and $ 18.5 billion for the entirely annual year. To put this fork in perspective, Verizon paid $ 11.2 billion to finance its dividend program last year.
CEO Hans Vestberg has registered Verizon capital allowance priorities in the company’s first quarter of the company’s first quarter of the company in April 2025. The first on the list was to continue investing in the company. What was the second? Vestberg said Verizon planned to “support and develop our dividends”.
The dividend is not the only thing that makes Verizon attractive for investors. The title was a solid winner this year, increasing almost 10% while the main market indices decreased.
One plus for Verizon is that his business should resist relatively well under the high prices of the Trump administration. Vestberg noted in the first quarter call “a very small part” of the company’s planned capital expenses is exposed to prices. He added: “We are a company based in the United States, investing in [the] American fiber is focused on the United States. Everything we do with work, the product is based on the fibers. “”
Vestberg acknowledged that prices could cause an increase in handset prices. However, he said Verizon did not plan to absorb higher costs.
Meanwhile, Verizon’s business is booming. He generated total wireless service income in the first quarter. The company has expanded its large -band market share. Verizon’s growth could accelerate in the not too distant future with the acquisition awaiting Border communications.
The purchase of 1,845 or 1,846 Verizon shares should bring you about $ 5,000 in the next year. However, you could earn even more money if the price of the action increases – which, I think, is likely.
Before buying actions in Verizon Communications, consider this:
THE Motley Fool Stock Advisor The team of analysts has just identified what they believe 10 Best Actions For investors to buy now … and Verizon Communications were not part of it. The 10 actions that cut could produce monster yields in the coming years.
InquireNetflixMake this list on December 17, 2004 … if you have invested $ 1,000 at the time of our recommendation,You would have $ 617,181! * Or when NvidiaMake this list on April 15, 2005 … if you have invested $ 1,000 at the time of our recommendation,You would have $ 719,371! *
Now it’s worth notingStock advisorTotal average yield is909% – an outperformance that made the market compared to163%For the S&P 500. Do not miss the last list of the best 10, available when you joinStock advisor.
