Verizon Communications (VZ) currently offers a dividend yield exceeding 7%, based on its quarterly dividend of $0.69, which annualizes to $2.76 per share. To generate $1,000 annually from dividends, an investor would need approximately 362 shares, costing around $14,732 at the current share price of $40.66. Verizon has a long history of dividend growth, increasing its dividend for over 20 consecutive years, making it attractive for passive income investors. Despite its high dividend yield, Verizon has underperformed the broader stock market over the past five years, with stock prices declining by 30% while the S&P 500 grew by 82%. The company is investing in 5G technology, which may improve future performance, but it is not considered a growth stock. For investors seeking stable income and consistent dividend increases, Verizon remains a viable option. However, those prioritizing growth might consider other stocks, as Verizon's stock has not kept pace with the market. Notably, Verizon's dividend payout is likely to continue, supported by its profitability, with $20 billion in trailing net income. Market analysts suggest that Verizon is suitable for investors looking for reliable income rather than capital appreciation. The company's stock is part of the S&P 500, indicating its status as a large-cap company. Despite recent underperformance, Verizon's investment in 5G and strong dividend history make it a noteworthy option for those seeking dividend income. However, it is not among the top recommended stocks for growth, as per recent analyst rankings.