Verizon reported better-than-expected Q1 earnings, driven by strong momentum in broadband, adding 339k subscribers in this segment. Verizon's Q1 free cash flow of $3.6B easily covered the telecom's $2.9B dividend, indicating a solid dividend coverage ratio. Verizon is also making progress in terms of repaying debt: the telecom reduced its long-term debt by $7.0B in the last year.
Verizon (VZ -2.11%) just reported its earnings for the first quarter of 2025. The telecom company improved its revenue and profits, but not at levels that impressed investors.
Verizon's long-term return (13 years) is about 5%. 100% of that is from its dividend. Q1 earnings beat expectations, with positive EPS and revenue growth, and a promising outlook with new initiatives, like the Frontier acquisition. Verizon generates substantial cash, focusing on debt repayment, dividends, and potential buybacks, ensuring steady, sustainable growth.
There's a lot of uncertainty these days. The Trump administration's tariff policy has spooked the markets, sparking fears we could be heading toward a recession.
Verizon's Q1 results showed strong financial growth, with revenue and net income increases, making it a solid investment opportunity with a 6% dividend yield. Despite mixed market reactions, Verizon's long-term value is compelling, especially as the Fed is expected to cut interest rates, enhancing Verizon's refinancing prospects. Verizon's business model is recession-proof, with smartphones being essential, and its valuation is attractive compared to other dividend-paying, recession-proof companies.
While there are only three major wireless providers in the United States, competition can be fierce. Verizon (VZ 0.73%) scored a win in the fourth quarter of last year with significant consumer phone subscriber gains, breaking a streak of lackluster results.
The great benefit of owning a high-yield dividend stock is that it doesn't take much to reach an important milestone with its payouts. That's one of the numerous attractions of Verizon Communications' (VZ 0.73%) shares, which currently have a yield that tips the scales at over 6%.
Verizon Communications Inc. (NYSE:VZ ) Q1 2025 Earnings Conference Call April 22, 2025 8:30 AM ET Company Participants Brady Connor - SVP, IR Hans Vestberg - Chairman and CEO Tony Skiadas - CFO Sowmyanarayan Sampath - CEO, Consumer Group Conference Call Participants John Hodulik - UBS Ben Swinburne - Morgan Stanley Jim Schneider - Goldman Sachs Michael Rollins - Citi Peter Supino - Wolfe Research Sebastiano Petti - JPMorgan Craig Moffett - MoffettNathanson Kannan Venkateshwar - Barclays Sam McHugh - BNP Bryan Kraft - Deutsche Bank Operator Good morning, and welcome to the Verizon's First Quarter 2025 Earnings Conference Call. At this time, all participants have been placed in a listen-only mode and the call will be opened for questions following the presentation.
Verizon's postpaid monthly phone subscribers fell more than expected. The company partly blamed federal government cuts for the larger-than-anticipated subscriber drop.
Despite Verizon's Q1 2025 earnings outperformance, a deeper dive into the drivers shows its vulnerability to impending weakness. The upcoming tariff uncertainties are poised to impact Verizon's capital-intensive and consumer-centric business, raising execution risks to its already modest growth outlook. The added weight of AI investments amidst growing demand uncertainties also risks straining its balance sheet and upending its dividend sustainability.
Although the revenue and EPS for Verizon (VZ) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Solid wireless service revenues help Verizon beat first-quarter 2025 earnings estimates.