Can Verizon's Cash Flow Cover Its Dividend Long-Term?

Verizon Communications Inc. (NYSE:VZ) is one of the Best Dividend Leaders to Buy Now.

The company has increased its dividend every year for the past 18 years. As the largest wireless carrier in the US, it operates a stable business that generates a large amount of free cash flow, which helps ensure a secure and growing dividend.

In the first quarter of 2025, Verizon Communications Inc. (NYSE:VZ) reported a strong cash position. Operating cash flow reached $7.8 billion, up from $7.1 billion in the same period of 2024. Free cash flow was $3.6 billion, compared to $2.7 billion in the first quarter of 2024.

For the full year 2025, Verizon Communications Inc. (NYSE:VZ) expects operating cash flow to be between $35.0 billion and $37.0 billion, with free cash flow projected between $17.5 billion and $18.5 billion. In addition, the company’s balance sheet remains healthy, with a leverage ratio of 2.3 for its unsecured debt (calculated as net unsecured debt divided by trailing 12-month adjusted EBITDA).

Considering this strong financial position, Verizon Communications Inc. (NYSE:VZ)’s dividend appears secure and well-positioned for future growth. The company offers a quarterly dividend of $0.6775 per share and has a dividend yield of 6.4%, as of June 23.

Verizon Communications Inc. (NYSE:VZ) is an American telecommunications company that provides a range of wireless and wireline communication services and products, including corporate networking solutions, data center and cloud services, and security and managed network services.

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