Verizon Communications Inc.

VZ
Communication Services
$46.54
5.94%Overvalued

Verizon Communications Inc. (VZ) is a Communication Services company that currently yields 5.94% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $33.30 and the overvaluation threshold at $46.88. Verizon Communications Inc. holds a quality score of 50/100 (Average), reflecting 14 consecutive years of dividend growth with a 67% payout ratio. The 5-year dividend CAGR stands at 2.0%.

VZ Dividend Yield History — Weiss Valuation

Underval. $33.30Overval. $46.88

Distance to undervalued

Entry price is stretched

Needs 28.4% downside to reach the Weiss buy zone

Undervaluation starts near $33.30, where the annual dividend would imply roughly 8.31% yield. That is 2.36% above today's yield.

Buy-zone price

$33.30

Target yield

8.31%

Research checklist

What to clear before buying the yield

Updated Jun 29, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

67%

Earnings coverage leaves room for noise.

Cash payout

60%

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

2026-06-282026-06-29

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 5.9% vs historical max 9.1% (65% of maximum).

14 consecutive years without a dividend cut.

Reasonable payout ratio of 67%.

What matters now

Read the signal before the headline yield

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

The 50/100 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

$606

Year 10 Income

$1,285

Yield on Cost

13.78%

Total Income

$9,015

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 ↗

Track dividends received & tax reports

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VZ Dividend Quality Score

Quality Score

50/ 100

Average

Payout Ratio12/25
Dividend Streak20/25
Growth (CAGR 5Y)3/20
Yield vs History5/15
FCF Coverage10/15

Key Metrics

Current Price$46.54
Annual Dividend$2.77
Current Yield5.94%
Yield — Max (10Y)9.14%
Yield — Min (10Y)5.99%
Undervalued Below$33.30
Overvalued Above$46.88
Payout Ratio67.44%
CAGR Dividend 5Y2.0%
CAGR Dividend 10Y2.1%
Years No Cut14y

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14
consecutive years of dividend growth