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The calculation to determine how many shares of Verizon are needed to make $5,000 in annual income is straightforward.
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However, the number is a moving target because of the strong possibility that Verizon will increase its dividend.
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Verizon offers investors more than a dividend, too, as evidenced by its market-beating performance in 2025.
Verizon Communications (NYSE: VZ) is known for many things. High-speed internet. An extensive network. Reliable coverage. But if you’re an investor, probably the main thing you think of when Verizon is mentioned is the company’s dividend.
Because of its ultra-high dividend yield, Verizon is popular with income investors. You might be surprised how much income a not-too-huge stake in this telecommunications stock can generate. Here’s how many shares of Verizon Communications you should own to receive $5,000 in annual dividend income.
Verizon currently pays a quarterly dividend of $0.6775 per outstanding share. That translates to $2.71 in annual dividend payments for each Verizon share you own.
Now, let’s determine how many shares you’d need to own to receive $5,000 in yearly dividend income. The math is straightforward. All we need to do is divide $5,000 by $2.71 per share. This gives us a result of 1,845.018 shares.
If we round this number down and you bought 1,845 shares of Verizon, your annual income would be a nickel short of the target $5,000. If you round up and buy 1,846 shares, your annual income would be $5,002.66. If you want to make exactly $5,000, you’d need to use fractional shares (although I doubt many investors care about being that precise).
Regardless of the exact number of shares you purchase, you’ll need a significant upfront investment. To make in the ballpark of $5,000 in annual dividend income, you would have to buy around $81,000 of the stock.
However, it’s important to note that the number of Verizon shares you need to own to receive $5,000 in annual dividend income could be a moving target. The primary variable is the amount of Verizon’s quarterly dividend payment.
Verizon has increased its dividend for 18 consecutive years. The telecommunications giant announced its most recent dividend hike in September 2024. If it raises the dividend payout again later this year, you won’t have to own as many shares to make $5,000 in annual income.
How likely is it that Verizon will keep its streak of dividend increases going? I think the chances are very good. Verizon’s dividend payout ratio is currently 64.23%. This level gives the company ample flexibility to boost its dividend in a few months if the board of directors chooses to do so.
DJ Kamal Mustafa
I’m DJ Kamal Mustafa, the founder and Editor-in-Chief of EMEA Tribune, a digital news platform that focuses on critical stories from Europe, the Middle East, Africa, and Pakistan. With a deep passion for investigative journalism, I’ve built a reputation for delivering exclusive, thought-provoking reports that highlight the region’s most pressing issues.
I’ve been a journalist for over 10 years, and I’m currently associated with EMEA Tribune, ARY News, Daily Times, Samaa TV, Minute Mirror, and many other media outlets. Throughout my career, I’ve remained committed to uncovering the truth and providing valuable insights that inform and engage the public.
