Verizon Communications Inc.'s near 7% yield, low valuation, and potential for capital appreciation make it a compelling buy for income-focused investors despite its debt load. The company reported solid Q4 earnings with EPS of $1.10 and revenue of $35.7 billion, driven by strong broadband and fixed-wireless subscriber growth. Verizon's free cash flow grew by 31.7% year-over-year, enabling continued dividend increases and debt reduction, enhancing its attractiveness for income investors.
Verizon has an almost 7% dividend yield, a strong return all by itself that justifies investing in the company. The company is growing both in prepaid and postpaid subscribers, resulting in top- and bottom-line growth. The company has additional billions it can use to improve its financial position and drive strong shareholder returns.
Verizon Communications (VZ -0.20%) continued to post strong subscriber growth in the fourth quarter, helping lift the stock. However, the stock has nonetheless traded lower over the past year.
Like most companies, Verizon Communications (VZ -0.20%) is looking at how it can best leverage the power of artificial intelligence (AI). The telecom giant is already using the technology to enhance the customer experience and drive efficiencies in its business.
Verizon (VZ -0.30%) stock doesn't get a lot of love from Wall Street, but the company continues to churn out cash quarter after quarter. In this video, Travis Hoium explains why the dividend alone could be a great reason to own the stock.
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.