Verizon Just Signed a More Than $1 Billion Dark Fiber Deal With Google. Here's What It Means for the 6.3% Dividend.

Verizon signed a $1+ billion dark fiber agreement with Google to connect data centers, with CEO Dan Schulman indicating multiple additional deals worth billions could be announced by year-end. The company raised full-year guidance for the second consecutive quarter, projecting 9-10% free cash flow growth and 6-7% adjusted EPS growth. With first-half free cash flow of $10.2 billion covering $5.9 billion in dividends, the new AI infrastructure revenue stream provides a growth catalyst for the previously slow-growing connectivity business.