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    If You Invest $500 a Month in This High-Yield Dividend Stock, Here's the Dividend Income It Could Produce Over 10 Years (Spoiler: It's More Than $23,000)

    The Motley Fool·09/29/2026 09:05:00
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    Key Points

    • Verizon's dividend yield is very generous.

    • It's also been growing steadily, though not briskly.

    Verizon Communications (NYSE: VZ) is a blue chip stock worth considering -- especially if you're seeking dividend income. Its recent dividend yield was a fat 6%. Let's see how much income you might collect from the telecommunications giant.

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    Verizon's logo is shown against a red background.

    Image source: The Motley Fool.

    Imagine, for example, that you invest $500 a month in it, or $6,000 per year. The table below shows what your investment might grow to if it grows at 8% annually for various periods. I picked 8% to be a bit conservative; over many decades, the S&P 500 has averaged annual returns close to 10% (ignoring inflation).

    Of course, Verizon stock hasn't been the fastest-growing over the long run, averaging just 2% annual gains over the past 15 years (with no dividend reinvestment). But over the past three years, it has averaged 13.3% gains annually.

    Here's how your money might grow with 8% annual gains if you invest $6,000 annually ($500 per month) or if you can wing $12,000 annually:

    Growing at 8% for

    $6,000 invested annually

    $12,000 invested annually

    Five years

    $35,199

    $70,399

    10 years

    $86,919

    $173,839

    15 years

    $162,913

    $325,825

    20 years

    $274,572

    $549,144

    30 years

    $679,699

    $1,359,399

    40 years

    $1,554,339

    $3,108,678

    Source: Chart by author using calculations from Investor.gov.

    As for dividend income, an initial $6,000 invested will generate $360 in year one. Over the past decade, Verizon's payout has grown at an average annual rate of about 2.3%. If that growth rate continues and the dividend yield remains constant (which is unlikely), in year two, with $12,000 invested, you'd collect around $742. In year three, $1,146. In year 10, you'd have $60,000 invested in Verizon, and you'd collect around $4,697 that year in dividends. Add the numbers over a decade, and it totals around $23,700 in dividend income!

    Those numbers are based on several assumptions, but clearly, a long-term investment in Verizon Communications could pay off well.

    Selena Maranjian has positions in Verizon Communications. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.