Verizon's already massive debt has risen further this year. Verizon now has to balance expectations of dividend increases against its generous yield. Reducing or suspending its dividend to focus on debt reduction could help Verizon stock longer-term.

Shares of Verizon VZ are up 4% in premarket trading Monday, after the company said it expects $19.5 billion to $20.5 billion in free cash flow for the full year, whereas it was previously modeling $17.5 billion to $18.5 billion.

Verizon Communications beat Wall Street’s earnings expectations and hiked its 2025 earnings and free cash flow guidance on Monday, sending the stock higher. The wireless carrier reported adjusted quarterly earnings of $1.