Forget This Struggling Audio Stock: This 6.1%‑Yielding Dividend Stock Is the Safer Way to Get Paid.
Key Points
Sirius XM pays out an excellent dividend yield of 4%.
Verizon, however, pays out a dividend with a yield of 6.1%.
Verizon has also increased its dividend for 21 years in a row.
When Warren Buffett, the former CEO of Berkshire Hathaway, buys a stock, it warrants an extra look, just because of his tremendously successful track record.
In late 2023, Buffett (through Berkshire) bought shares of satellite radio company Sirius XM (NASDAQ: SIRI), and the stock immediately got the Buffett bounce. But since then, the stock has struggled, down about 46% from late 2023 when it traded at $48 per share. It is up a robust 35% year to date in 2026 to $27 per share, but it is still down big from when Buffett bought it.
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Despite its 2026 rebound, there is limited upside for Sirius XM, at least according to analysts. Revenue and adjusted earnings were down last year, and the outlook for 2026 is not much better. The company calls for flat revenue and a slight decline in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2026.
There is scuttlebutt that Sirius XM is in talks to buy iHeartMedia, but nothing is concrete or official. That could change its trajectory, one way or the other, depending on the deal. Stay tuned for more when Sirius reports Q2 earnings on April 30.
On the plus side, Sirius XM has a strong dividend, paying $0.27 per share at a yield of 4.06%. But there is another media and communications stock, Verizon Communications (NYSE: VZ), with a better dividend and more upside.
Verizonʻs stellar dividend
Verizon released its first-quarter earnings on Monday, April 27, and the results lifted the stock more than 3% to about $48 per share. While revenue rose 3% year over year in Q1, it missed estimates by a whisker. However, adjusted earnings topped estimates, growing nearly 8%. It was the highest adjusted earnings growth rate since 2021.
In addition, Verizon raised its 2026 guidance, calling for adjusted earnings of $4.95 to $4.99 per share, representing 5% to 6% growth. Also, it lifted its guidance for retail postpaid phone net additions to be in the high end of the 750,000 to 1.0 million range. That would be 2 to 3 times above 2025 levels.
Verizon stock is up about 15.5% year to date, and Wall Street analysts have a median price target of $49.50 per share, which is only about a 5.3% gain. But that could reset higher following this outlook rise.
The primary draw of Verizon stock right now is its dividend. This quarter, Verizon raised its dividend to $0.71 per share, from $0.69 per share the previous quarter. Its ridiculously high yield of 6.1% is one of the highest youʻll find. Further, Verizon has increased its dividend annually for the past 21 years.
That dividend is fed by Verizonʻs strong free cash flow. In Q1, Verizon increased its free cash flow by 4% to $3.8 billion. For 2026, Verizon anticipates $21.5 billion in free cash flow, some 7% more than 2025 and the highest total since 2020.
The dividend alone makes it a great buy in these choppy markets. When you reinvest that dividend back into the stock, you are boosting its total return. Either that, or you pocket the high-yield dividend. Either way, Verizon is one of the best dividend stocks youʻll find.
Should you buy stock in Verizon Communications right now?
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Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
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