This 6%-Yielding Stock Keeps Raising Its Payout No Matter What the Economy Does

2 hours ago 1

Selena Maranjian, The Motley Fool

Fri, June 19, 2026 astatine 11:02 AM CDT 4 min read

It's hard to find much charismatic investments than steadfast dividend-paying stocks, due to the fact that they connection a win-win-win proposition: Over clip their banal prices should rise, positive they wage dividends to shareholders regularly, plus those dividends thin to beryllium accrued implicit time, too.

That's a winning combination! Note, too, that these dividend payments thin to support being made nary substance whether the system is booming oregon ailing. Here, then, is 1 attractive dividend payer to consider: Verizon Communications (NYSE: VZ).

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Someone is seated with a phone, looking up and smiling.

Why Verizon Communications?

Let's commencement with Verizon's dividend, due to the fact that it whitethorn beryllium the astir compelling happening astir the stock. It precocious yielded a hefty 6%. It's besides a increasing dividend, though it hasn't been increasing ace briskly. Over the past 5 years, for example, it has accrued astatine an mean yearly complaint of 2.4%. The astir caller increase, announced successful February, was a 2.5% hike.

That humble maturation complaint whitethorn beryllium disappointing, but retrieve that portion different dividend payers whitethorn yield, say, 3.5% and beryllium hiking their payouts rapidly, it tin inactive instrumentality a portion to get to Verizon's existent output of 6%. And Verizon has been upping its payout for 20 consecutive years. Better still, its payout ratio was precocious astir 67%, meaning that it's lone paying retired astir 67% of its net successful dividends, leaving plentifulness of country for further growth.

Here are immoderate much reasons, beyond its dividend yield, to see Verizon Communications for your portfolio:

The institution is good established, with adjacent to 150 cardinal wireless retail connections and serving 99% of Fortune 500 companies.
Its beta is low, presently astatine 0.22%. That should entreaty to anyone disquieted astir a looming marketplace crash, due to the fact that the debased beta means Verizon is overmuch little volatile than the wide market. If the marketplace drops by, say, 10%, Verizon's past suggests it mightiness autumn by conscionable 2.2%.
The precocious dividend output tin assistance combat inflation.
It has a caller CEO, Dan Schulman, who is turning distant from terms hikes and focusing connected adding worth -- while laying the foundation for aboriginal growth.
The institution is already performing reasonably well, posting 2.9% year-over-year gross maturation successful its archetypal quarter, with non-GAAP (adjusted) net per stock (EPS) rising 7.6%. Management hiked its full-year adjusted EPS maturation guidance from betwixt 4% to 5% to betwixt 5% to 6%. It besides reaffirmed its 2026 escaped currency travel outlook of $21.5 cardinal oregon more, which amounts to maturation of astatine slightest 7%.