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Investing $10,000 in Verizon in 2015 Would Yield About $12,000 by 2025

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  Published in Stocks and Investing on Wednesday, December 24th 2025 at 21:51 GMT by The Motley Fool
      Locale: New York, UNITED STATES

If You’d Invested $10,000 in Verizon 10 Years Ago – What Actually Happened

In a recent piece published on The Motley Fool on December 24, 2025, the writer takes a long‑haul look at the performance of Verizon Communications Inc. (ticker: VZ) over the past decade. The question is simple yet powerful: If you had put $10,000 into Verizon stock ten years ago, what would it be worth today? The answer is not a flash‑in‑the‑pan windfall. Instead, it’s a testament to the company’s steady, dividend‑rich but modest‑growth business model, a record that sits somewhere between the “hold‑and‑sustain” strategy and a passive “dividend aristocrat” playbook.

1. The Starting Line – Verizon in 2015

The article opens with a quick snapshot of Verizon’s 2015 stock price. On December 31, 2015, Verizon closed at roughly $48.58 per share. A $10,000 investment at that price would have bought about 206 shares (since 10,000 ÷ 48.58 ≈ 205.8). At the time, Verizon’s earnings per share were hovering around $1.20, and the company had a dividend yield of about 4.4 % – already a hallmark of a stable telecommunications firm.

Why the date matters: 2015 was a period when Verizon was still ramping up its 4G LTE network, and its foray into the nascent 5G market was just beginning. Investors were looking for consistent cash flows rather than explosive growth.

2. The 10‑Year Journey – Prices, Dividends, and Re‑Investments

The piece walks through the decade in chronological fashion, highlighting key inflection points:

Using the dividend reinvestment plan (DRIP) assumption—every dividend paid in cash was used to purchase additional shares—the article shows a cumulative growth that outpaces a simple “buy‑and‑hold” scenario. The dividend yield hovered between 4.0 % and 4.5 % during most of the decade, providing a predictable income stream. When these dividends were reinvested, the compound annual growth rate (CAGR) of the portfolio was about 5.3 %—slightly better than the 5‑year S&P 500 CAGR of the same period.

Total Return Calculations (Illustrative):
- Capital Gains: $10,000 ÷ $48.58 = 205.8 shares; selling at $38.90 gives $8,006.
- Dividends: Averaging $2.53 per share per year over 10 years = $2,533.
- Re‑Invested Dividends: Assuming an average reinvestment price of $42 gives an additional 60 shares, adding another $2,520 in value.

Adding up, the portfolio would sit near $12,000 at the end of 2025—an ≈20 % gain over the original outlay. While modest by high‑growth standards, it is a respectable outcome for a defensive, dividend‑heavy company.

3. Peer Comparison – Verizon vs. the Telecom Pack

The article doesn’t stop at Verizon. It contextualizes its performance by comparing it with industry peers:

Verizon’s return sits comfortably between the debt‑burdened AT&T and the aggressive growth of T‑Mobile. Its dividend yield is higher than most of its peers, making it an attractive choice for income‑focused investors.

4. Business Dynamics – What Powered the Decade?

The article dives into the factors that kept Verizon in business and its relative stability:

1. Network Infrastructure Legacy – Verizon still owns a larger share of the U.S. wireless spectrum and ground‑station assets than any other operator, making it a long‑term incumbent.
2. 5G Deployment – Although 5G rollout lagged behind T‑Mobile, Verizon’s network density in metro markets gave it a competitive edge in high‑speed broadband.
3. Media Spin‑Off – The 2019 sale of Verizon Media for $4.5 billion removed a non‑core business and improved the company’s balance sheet.
4. Regulatory Environment – Verizon faced relatively few regulatory setbacks during the decade, unlike AT&T, which struggled with debt and litigation.
5. Dividends as a Buffer – The company’s robust cash flow allowed it to maintain a consistent dividend even during the COVID‑19 recession.

These dynamics made Verizon a “stable, defensive play” that could weather market turbulence while still delivering incremental returns.

5. Risks and Caveats – Why the Past Might Not Predict the Future

The piece also includes a sober disclaimer that the historical performance of Verizon does not guarantee future results. Several risks loom:

• Market Saturation & Competition – T‑Mobile and emerging 5G players are eroding Verizon’s pricing power.
• Regulatory Pressure – Net‑neutrality debates and potential antitrust actions could affect capital expenditure.
• Technological Shifts – As 5G moves from early adopters to mainstream, Verizon will need significant capital to upgrade older infrastructure.
• Debt Levels – Though better than AT&T, Verizon still carries debt that can pressure cash flow.

Given these uncertainties, the author suggests that while Verizon remains a solid dividend payer, investors should weigh it against growth opportunities in adjacent sectors, like media streaming and fiber broadband.

6. Take‑Away Summary

• $10,000 in 2015 → ≈ $12,000 in 2025 – a modest, but reliable return of roughly 20 % over ten years.
• Dividend Reinvestment – A crucial driver; the 5.3 % CAGR of the DRIP portfolio outpaced a simple buy‑and‑hold.
• Peer Comparison – Verizon outperformed AT&T and underperformed T‑Mobile, but its yield is attractive.
• Business Model – Heavy on infrastructure, moderate growth, steady dividends; a “dividend aristocrat” type play.
• Risks – Competitive, regulatory, and technological shifts could erode returns in the next decade.

In essence, the article paints Verizon as a steady, income‑focused investment—not a spectacular growth story but a reliable component of a diversified portfolio. For investors who prioritize cash flow over rapid capital appreciation, the $10,000 over a decade narrative underscores how a company that has weathered 5G hype, a media spin‑off, and a global pandemic can still deliver tangible value.