Verizon Communications Inc.

VZ
Communication Services
$46.98
5.95%Overvalued

Verizon Communications Inc. (VZ) is a Communication Services company that currently yields 5.95% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $33.66 and the overvaluation threshold at $47.39. Verizon Communications Inc. holds a quality score of 43/100 (Average), reflecting 14 consecutive years of dividend growth with a 73% payout ratio. The 5-year dividend CAGR stands at 2.0%.

VZ Dividend Yield History — Weiss Valuation

Underval. $33.66Overval. $47.39

Distance to undervalued

Entry price is stretched

Needs 28.3% downside to reach the Weiss buy zone

Undervaluation starts near $33.66, where the annual dividend would imply roughly 8.31% yield. That is 2.35% above today's yield.

Buy-zone price

$33.66

Target yield

8.31%

Research checklist

What to clear before buying the yield

Updated Aug 13, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

73%

Earnings coverage leaves room for noise.

Cash payout

67%

Free cash flow coverage supports the payment.

Dividend growth

2.0%

Lower growth changes the return trade-off.

What changed

What changed since the last update

2026-08-122026-08-13

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

Verizon Communications Inc. is trading near its historical overvaluation band.

Current yield 6.0% vs historical max 9.1% (65% of maximum).

14 consecutive years without a dividend cut.

Reasonable payout ratio of 73%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

The 43/100 quality score says the headline yield needs extra skepticism.

Start by checking whether payout coverage and business durability still support the dividend.

VZ Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$607

Year 10 Income

$1,287

Yield on Cost

13.81%

Total Income

$9,031

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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More research

Full price history & technical analysis

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Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

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VZ Dividend Quality Score

Quality Score

43/ 100

Average

Payout Ratio5/25
Dividend Streak20/25
Growth (CAGR 5Y)3/20
Yield vs History5/15
FCF Coverage10/15

Key Metrics

Current Price$46.98
Annual Dividend$2.80
Current Yield5.95%
Yield — Max (10Y)9.12%
Yield — Min (10Y)5.99%
Undervalued Below$33.66
Overvalued Above$47.39
Payout Ratio72.79%
CAGR Dividend 5Y2.0%
CAGR Dividend 10Y2.1%
Years No Cut14y

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14
consecutive years of dividend growth