TDS vs VZ: Which Is the Better Dividend Stock?
As of Oct 18, 2026, VZ (Verizon Communications Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. VZ offers the higher yield at 6.32%, VZ has the higher dividend-safety score, and VZ looks like the better value (its fair-value estimate is 56% above its share price).
Key facts: TDS vs VZ
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Verizon Communications Inc. (VZ) has the higher forward dividend yield at 6.32%, versus 0.47% for Telephone and Data Systems, Inc. (TDS).
- As of Oct 18, 2026, SmarterDividends grades TDS's dividend safety B (70/100) and VZ's A (87/100).
- By SmarterDividends' count as of Oct 18, 2026, TDS has raised its dividend for 0 consecutive years and VZ for 21.
- As of Oct 18, 2026, TDS pays out 4% of its earnings as dividends and VZ pays out 73%.
- As of Oct 18, 2026, TDS's fair-value estimate is 6% above its share price and VZ's fair-value estimate is 56% above its share price, so VZ looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "TDS vs VZ: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/tds-vs-vz
| Metric | TDS | VZ |
|---|---|---|
| Forward yield | 0.47% | 6.32% |
| Annual dividend | $0.16 | $2.83 |
| Payout ratio | 4% | 73% |
| Years of growth | 0 yr | 21 yr |
| 5-yr dividend growth | -25.1% | 2.0% |
| 5-yr total return | 92% | -11% |
| Dividend safety score | 70 (B) | 87 (A) |
| Fair value estimate | $36.02 | $70.01 |
| Upside to fair value | +6% | +56% |
| Frequency | quarterly | quarterly |
| Market cap | $3.9B | $186.1B |
| P/E ratio | 8.5 | 11.7 |
Higher yield
VZ
6.32%
Safer dividend
VZ
Grade A
Faster growth
VZ
2.0%
Better value
VZ
+56% upside
TDS vs VZ — FAQ
Is TDS or VZ a better dividend stock?
On the data, VZ wins more head-to-head categories (6 vs 2). VZ offers the higher yield (6.32%), while VZ has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, TDS or VZ?
VZ has the higher forward dividend yield at 6.32%, versus 0.47% for TDS.
Is TDS or VZ safer?
VZ has the higher dividend-safety score (87/100 vs 70/100), reflecting stronger payout coverage and dividend-growth history.
Is TDS or VZ better value right now?
As of Oct 18, 2026, VZ looks like the better value: its fair-value estimate is 56% above its share price (undervalued). For TDS, its fair-value estimate is 6% above its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.