Sneha Nahata

Thu, Jun 26, 2025, 4:30 PM4 min read

Investing in shares of companies that steadily increase their dividends over time can help build a reliable stream of income within your portfolio. These dividend growers are backed by financially sound businesses with stable cash flows and a focus on rewarding shareholders. Their commitment to regular and rising payouts not only adds stability, but also enhances the long-term income potential for investors.

What makes these stocks compelling is the built-in defense they provide against inflation. As dividends grow, they help preserve purchasing power, offering a cushion in times of rising prices. Moreover, if those dividends are reinvested, the effects of compounding can help generate significant returns over time.

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In this context, Verizon (VZ) emerges as a particularly appealing option. The communications services provider has a long track record of dividend increases, reflecting its financial strength and shareholder-friendly moves. With a high dividend yield of 6.5%, Verizon offers attractive income today and the potential for that income to grow in the future.

Verizon is known for rewarding its shareholders with higher dividend payments. The communications giant has raised its dividend for an impressive 18 consecutive years, a reflection of its financial strength and disciplined approach to shareholder returns.

Verizon continues to grow its wireless service revenues while expanding its adjusted EBITDA and generating strong free cash flow. These factors provide Verizon the financial strength and flexibility to sustain and increase its dividend, even in a competitive and capital-intensive industry.

In the third quarter of 2024, the company increased its quarterly dividend by 1.9%, moving it from $0.6650 to $0.6775 per share. While the increase may seem modest, it reflects a steady upward trend that investors can rely on year after year.

In 2024, Verizon returned a total of $11.2 billion to shareholders through dividends, up from $11 billion the previous year. That momentum has carried into 2025, with the company already distributing $2.9 billion in dividends in the first quarter.