"Verizon ( NYSE: VZ) and Johnson & Johnson ( NYSE: JNJ) both rewarded shareholders with dividend increases this quarter, but their paths to sustaining those payouts look very different. Verizon raised its quarterly dividend to $0.69 per share, marking its 19th consecutive annual raise. Johnson & Johnson lifted its quarterly payout to $1.30 per share, extending a Dividend King streak spanning 63+ consecutive years. Verizon climbed 25.75% over the past month while Johnson & Johnson gained 11.28%."
"The company produced $20.1 billion in free cash flow in 2025, covering its $11.5 billion dividend 1.75 times. That coverage is healthy, but a $158 billion debt load from the Frontier acquisition constrains flexibility. Capital expenditures consumed $17 billion, reflecting the capital-intensive nature of fiber and wireless infrastructure. CEO Dan Schulman said the company is "exiting 2025 with strong momentum" and promised Verizon "will no longer be a hunting ground for our competitors.""
"Johnson & Johnson operates a fundamentally different business. The healthcare giant generated $19.7 billion in free cash flow in 2025 while spending only $4.8 billion on capital expenditures, leaving room for $12.4 billion in dividends plus $6 billion in share buybacks. The payout ratio sits at a comfortable 62.8% of free cash flow. CEO Joaquin Duato called 2025 "a catapult year" driven by the "strongest portfolio and pipeline in our history.""
Verizon increased its quarterly dividend to $0.69, marking a 19th consecutive annual raise, while Johnson & Johnson raised its payout to $1.30, extending a 63+ year Dividend King streak. Verizon produced $20.1 billion in free cash flow in 2025, covering its $11.5 billion dividend 1.75 times, but carries a $158 billion debt load and spent $17 billion on capital expenditures. Johnson & Johnson generated $19.7 billion in free cash flow, spent $4.8 billion on capex, and allocated room for $12.4 billion in dividends plus $6 billion in buybacks, with a 62.8% payout ratio. Verizon shows wireless service growth and strong postpaid phone additions, while J&J benefits from oncology drugs and MedTech performance.
Read at 24/7 Wall St.
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