How Verizon job cuts impact its 6% dividend yield

Verizon cut 13,000 positions in Q4 of 2025, according to a CNBC report. While initial reports suggested job cuts could reach 15,000, CEO Dan Schulman made clear this is just the beginning of a multi-year efficiency drive.

The company's ongoing focus on cost savings will help the Dow Jones 30 member battle for share in a fiercely competitive market, supporting its lofty dividend yield of 6%.

"We are building an in-year war chest of $5 billion in OpEx savings," Schulman said during the earnings call. "This will allow us to be more agile and reinvest in our business for growth and loyalty, and this is just the beginning."

Verizon raises dividend

Schulman raised the annual dividend by $0.07. That's a 2.5% increase and the 20th consecutive year Verizon has raised its dividend.

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The company also authorized a massive $25 billion share repurchase program over the next three years, with at least $3 billion in buybacks planned for 2026 alone.

"This plan underscores our confidence in the strength of our business, our cash flow generation, and our dedication to driving meaningful shareholder returns," Schulman said.

Related: Verizon's $20 billion acquisition resets dividend outlook

Free cash flow for 2026 is expected to hit at least $21.5 billion, up roughly 7% from 2025 and the highest since 2020. Verizon’s focus on cost savings will help it improvefree cash flow through 2029. 

That growth comes despite the Frontier acquisition typically being cash flow dilutive in its first year.

Will Verizon continue growing its dividend?

According to data from Fiscal.ai, Verizon has raised its annual dividend from $1.62 per share in 2006 to $2.83 per share in 2026.

Analysts forecast its free cash flow to improve from $20.1 billion in 2025 to $27 billion in 2030.

A widening free cash flow base and a focus on cost optimization should support steady dividend hikes.

Tikr.com data shows that Verizon's annual dividend could increase to $3 per share in 2030.

A new sheriff in town

Schulman, who took over from Hans Vestberg in October, hasn't pulled punches about Verizon's (VZ) recent struggles. 

The company lost market share for years while competitors like T-Mobile aggressively poached customers. Under Vestberg, Verizon stock dropped 15% as overinvestment failed to drive growth.

Schulman declared:

His turnaround plan focuses on three areas:

• Workforce reductions,
• Marketing efficiencies, and
• Real estate rationalization.

The company is also renegotiating contracts and eliminating resources that are not aligned with its core priorities.

Related: Verizon CEO shifts gears after 2.25 million customers depart

But Schulman stressed the cuts aren't just about slashing costs. "No company ever cost cut its way to greatness," he said. "We are examining every dollar of OpEx and CapEx to ensure it is being spent on initiatives that will drive customer loyalty and brand trust."

Strong Q4 results provide momentum

Despite the upheaval, Verizon delivered impressive fourth-quarter numbers. 

• Verizon added 616,000 postpaid phone subscribers, its best performance in six years. 
• Total mobility and broadband net adds topped 1 million for the first time since 2019.
• Consumer postpaid phone additions hit 551,000, driven by holiday promotions that resonated with customers looking to switch carriers. 
• The company's fixed wireless access service added 319,000 subscribers, while Fios fiber delivered 67,000 net adds.

Revenue came in at $36.4 billion, beating analyst estimates of $36.06 billion. For the full year, adjusted EBITDA reached $50 billion, up 2.5% from 2024.

Aggressive targets for 2026

Schulman set ambitious goals for the year ahead. 

• Verizon is targeting 750,000 to 1 million postpaid phone net adds, roughly two to three times its 2025 total. 
• Adjusted earnings per share should grow 4% to 5%, hitting $4.90 to $4.95.
• The company expects mobility and broadband service revenue to grow 2% to 3%, even as it laps billions in price increases from 2025 that won't recur.
• Capital spending will drop to $16 billion to $16.5 billion, down $4 billion from the combined Verizon and Frontier expenditures in 2025. 

Schulman insisted network quality won't suffer, noting the C-Band build is 90% complete.

The CEO's message is clear: Verizon is playing to win again, and shareholders should expect meaningful returns along the way.

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