I think what investors might consider VZ for - its relatively high yield - looks quite stable to date, with no red flags for potential cuts shortly. Verizon's Q4 FY2024 report revealed its strongest quarterly performance in more than ten years through nearly "one million new postpaid mobile and broadband customers." The investments Verizon plans to make should drive up its customer growth and even further market penetration, in my opinion.
Verizon (VZ) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Verizon has executed brilliantly as it reports renewed growth through the performance metrics across consumer postpaid and broadband segments. The same has been observed in the richer bottom-lines as it contributed to a healthier balance sheet, and we leave peak 5G-related capex behind us. These reasons are also why we believe that VZ has been oversold at current levels, with it triggering a rich capital appreciation prospect along with expanded forward dividend yields.
Verizon's shares have underperformed over the past decade, but its consistent dividend payments and potential for margin expansion present a compelling investment opportunity. Despite $120 billion in debt, Verizon's profitability and free cash flow provide a strong foundation for debt repayment and refinancing, enhancing future margins. Verizon's strong subscriber growth and guidance for 2025, coupled with a low valuation and high dividend yield, make it an attractive investment.
Verizon's strong broadband subscriber growth and free cash flow generation support its dividend and investment potential. The telecom beat Q4'24 revenue estimates and met EPS expectations, showing solid momentum with 408,000 broadband customer additions and a robust free cash flow of $5.4B. Verizon's low valuation at an 8.1X forward earnings multiplier and a 12% earnings yield present a favorable risk profile for investors.
The market is cautiously optimistic following Verizon's Q4 2024 earnings release last week. Although I retain my buy rating, there are some operational issues that I am growing wary of. Deleveraging efforts were well-received by investors, but more progress is needed on that front in 2025.
Verizon reported minimal growth in Q4, with only a 1.7% sales increase and 3.1% wireless services growth, despite adding millions of new accounts. The company is now primarily a dividend play, with free cash flow guidance for 2025 lower than 2024, and capex focused mostly on network maintenance. The stock has limited upside with the 7% dividend yield the current focus.
Last Friday, Verizon reported strong quarterly numbers powered by healthy user growth. Despite a massive debt load, Verizon's utility-like cash flow generation and undervaluation make it a solid buy, with a 5-year price target of $80.64 [expected CAGR return of 15.3%]. Given improving business trends, positive growth forecasts, balance sheet deleveraging, and attractive dividend yield, I am upgrading Verizon to a "Buy" rating.
After years of struggle, Verizon's NYSE: VZ turnaround is gaining traction and driving shareholder value. Its push to build the most substantial 5G network in North America is paying off with increased share, penetration, and customer satisfaction, keeping it on track for sustained growth.
Verizon (VZ 0.92%) pays a monster dividend. At 6.8%, it's one of the 10 highest-yielding dividend stocks in the S&P 500.
Verizon (VZ 1.31%) stock is climbing Friday following the company's fourth-quarter earnings release. The telecom company's share price was up 1.3% as of 12:15 p.m.
Verizon Communications Inc. (VZ) Q4 2024 Earnings Call Transcript