Verizon Communications (VZ) Increases Quarterly Dividend To US$0.69 Per Share

Verizon Communications (VZ) announced a dividend increase on September 5, 2025, to 69 cents per share, enhancing shareholder value. During August, Jennifer K. Mann joined the Board, bringing extensive experience from her tenure at Coca-Cola. The company also launched preorders for the Google Pixel 10 series, offering competitive trade-in discounts and payment plans. These initiatives occurred as markets remained stable, with the S&P 500 and Nasdaq posting modest weekly gains and Treasury yields reaching a five-month low, amidst expectations of a Federal Reserve interest rate cut. Such strategic actions likely added positive momentum amidst these broader market conditions.

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The recent dividend increase by Verizon Communications enhances shareholder value and underscores the company's commitment to returning capital to investors. The addition of Jennifer K. Mann to the Board and the launch of competitive product offerings like the Google Pixel 10 series preorders indicate Verizon's ongoing efforts to strengthen its market position. These moves align with Verizon's strategic focus on broadband and 5G expansion, which are anticipated to support higher revenue per user and improve financial performance amidst modest market gains.

Over the past three years, Verizon has achieved a total shareholder return of 28.53%, reflecting a combination of share price movements and dividends. In the last year, however, the company's shares underperformed the US Telecom industry, which saw a 22.5% return. This suggests some challenges in matching industry growth, potentially due to rising competition and heavy investment costs.

The recent initiatives could positively impact Verizon's revenue and earnings forecasts by enhancing customer retention and increasing average revenue per user through expanded service offerings. Analysts expect earnings to grow to US$22.1 billion by 2028, driven by factors like digital transformation and enterprise solutions. However, the current share price of US$44.38 indicates a near 10% discount to the analyst consensus price target of US$48.61, suggesting potential upside if the company meets growth expectations and market conditions remain favorable.

Click to explore a detailed breakdown of our findings in Verizon Communications' financial health report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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