Latest news with #VerizonCommunications
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
Verizon Hikes In-Office Requirement, Leases Larger NYC Office
Telecommunications giant Verizon Communications is moving its headquarters to a larger office space in Manhattan as it ramps up in-office requirements for most of its management employees. Verizon has leased 200,000 square feet in a recently renovated office tower near Manhattan's Penn Station, according to people familiar with the matter. Verizon plans to consolidate next year over 1,000 employees currently working in two other Manhattan locations.
Yahoo
4 days ago
- Business
- Yahoo
Dogs of the Dow: Why Verizon's (VZ) High Dividend Yield Still Looks Safe
Verizon Communications Inc. (NYSE:VZ) is included among the 11 Dogs of the Dow Dividend Stocks to Buy Now. A smiling customer receiving customer contact center solutions on their smartphone. A high dividend yield can sometimes signal trouble, but that's not the case with Verizon Communications Inc. (NYSE:VZ), despite its 6.3% yield. The company's latest quarterly performance suggests its dividend is well-covered. In the second quarter, Verizon Communications Inc. (NYSE:VZ) posted solid results with revenue up 5.3% to $34.5 billion and adjusted earnings growing 6.1% to $1.22 per share. Wireless service revenue rose to $20.9 billion, leading the industry, while broadband and business wireless segments also expanded. The company added more than 300,000 new mobility and broadband customers, with Fios gaining ground. Recent efforts to improve customer loyalty and attract new users played a key role in this growth. Over the first half of the year, Verizon Communications Inc. (NYSE:VZ) generated $16.8 billion in operating cash flow, $200 million more than the same time last year. After spending $8 billion to support its fiber and 5G infrastructure, it still had $8.8 billion in free cash flow— enough to easily cover $5.7 billion in dividends and leave $3.1 billion in excess cash. Verizon Communications Inc. (NYSE:VZ) has raised its dividends for 18 consecutive years, which makes it a reliable choice among income investors. The company's quarterly dividend comes in at $0.6775 per share. While we acknowledge the potential of VZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
3 Stocks Too Cheap to Ignore at These Prices
Key Points Wireless telecom outfit Verizon will never be a growth stock. It's a powerful income investment though, with little plausible price downside from here. Retailer Target's future may still be fuzzy, but the market's undeservedly pricing in a worst-case scenario. Perhaps the most compelling underpriced stock isn't a stock at all. It's a collection of hand-picked names, including some privately owned businesses you can't invest in any other way. 10 stocks we like better than Target › How much does a stock's valuation matter? Most investors will at least look at the metric. By and large, however, most investors also know there's not much correlation between a stock's price (relative to earnings) and that ticker's performance. Expensive stocks can and do continue to rally, while cheap stocks are often cheap for good reason. Sometimes, though, a bargain is too good to ignore -- even if a particular stock wasn't one you were thinking about owning. Here's a rundown of three such stocks to consider adding to your portfolio. 1. Verizon For the record, Verizon Communications (NYSE: VZ) will never serve as a growth stock in anyone's portfolio. It's just not possible. While it's a solid, income-producing name, the U.S. wireless telecom market it leads is just too saturated. Numbers from Pew Research indicate that 98% of adults living in the United States already own a cellphone, for perspective, while the rest of its profit centers like cable TV, broadband, and business services just aren't going to be big enough anytime soon to truly matter. With the major carriers mostly just swapping subscribers these days, the most hope for long-term growth from this company is population growth. As a dividend stock, though, you'd be hard-pressed to find better. Newcomers will be plugging into a forward-looking yield of 6.6% based on a dividend that's now been raised in each of the past 18 years, and is apt to continue rising indefinitely. The key to these continued dividend payments and payout growth is the nature of the business itself. Americans love their mobile phones -- perhaps to an unhealthy degree. A recent report from health data management firm Harmony Healthcare IT suggests nearly half of all Americans are addicted to their devices, in fact, spending an average of more than five hours per day looking at their handheld connection to the outside world. Healthy or not, even if they're willing to switch service providers, Verizon's target market isn't likely to ever become interested in giving up their phones. As of the latest look, Verizon shares are trading at less than 10 times this year's expected per-share earnings of $4.69. This doesn't necessarily translate into above-average upside. It does, however, certainly limit its downside. 2. Target There's no denying general merchandise retailer Target (NYSE: TGT) has been forced out of its element for the past few years. While its "cheap chic" shtick works in a firm economy where consumers aren't quite so cost-conscious, when money is tight (as it has been since inflation gripped the nation beginning in late 2021), Walmart is king. Target's mostly disappointing same-store sales growth since then confirms it. And the market has punished the company's lackluster performance. Shares are now more than 60% below their late-2021 peak, and still within sight of the multiyear low made in April of this year. The sellers, however, have arguably overshot their target. That's what the stock's forward-looking price/earnings ratio of only 13 says, anyway. That's about as cheap as Target shares have been in eight years. The kicker: The forward-looking dividend yield's been pumped up to 4.4%. The irony is, thanks to a handful of turnaround initiatives, Target's a more compelling investment prospect now than it's been in a long, long time. These initiatives include same-day shipping of online orders, product collaborations like its one with Kate Spade, ongoing store remodels, and -- perhaps more than anything -- the execution of a clear merchandising-minded strategic plan that's expected to add another $15 billion worth of annual revenue by 2030. These plans, of course, include the continued evolution of its private-label business, as well as the addition of new partnerships and the expansion of existing ones with the likes of Disney and Warby Parker. There's certainly no guarantee these efforts will pan out as hoped. Indeed, the first quarter's same-store year-over-year sales dip of 3.8% confirms there's still work to be done. The analyst community, however, believes a turnaround will start to take shape by the end of next year, perhaps assisted by simple economic stability that could start gelling by then. This stock should start reflecting this brewing turnaround before then, though, in anticipation of its materialization. 3. Berkshire Hathaway Finally, add Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to your list of stocks that have become too cheap to ignore. OK, it's not a stock in the traditional sense. It's a conglomerate of several privately owned businesses that also happens to hold a bunch of publicly traded names, including Apple, Coca-Cola, and Chevron, some of which pay dividends, and all of which produce realized and unrealized gains and losses. This can make it particularly tough to determine a meaningful valuation for Berkshire shares. It is possible, though, if you know where to look. That's on the official SEC filing, laying out this conglomerate's revenue, operating costs, and investment income as it can best be quantified in any given year. Although Buffett himself doesn't like the fact that the figure includes unrealized gains or losses on its stock holdings, last year, Berkshire reported the equivalent to $89.6 billion worth of net income following 2023's figure of $97.1 billion. Assuming it's able to repeat the feat again this year, with a market cap of just over $1 trillion, that translates into a projected price/earnings ratio of only about 11. This makes sense, of course. Warren Buffett is a value investor, of course, so most of Berkshire's equity holdings are value stocks. Its privately held businesses like Dairy Queen, railroad BNSF, insurer Geico, Duracell batteries, and Fruit of the Loom are also cash-generating business lines that tend to be categorized as value industries. Ergo, this relatively low earnings multiple comes as no real surprise. Even by most value stocks' average valuations right now, however, this is still dirt cheap. For the sake of comparison, the Vanguard Value ETF is trading at a trailing P/E of just under 20, while the iShares S&P 500 Value ETF is priced at more than 22 times its constituents' trailing per-share earnings. Should you invest $1,000 in Target right now? Before you buy stock in Target, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Target wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,799!* Now, it's worth noting Stock Advisor's total average return is 1,037% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 James Brumley has positions in Coca-Cola. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Chevron, Target, Vanguard Index Funds - Vanguard Value ETF, Walmart, and Walt Disney. The Motley Fool recommends Verizon Communications and Warby Parker. The Motley Fool has a disclosure policy. 3 Stocks Too Cheap to Ignore at These Prices was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Why I Just Bought More of This Ultrahigh-Yield Dividend Stock
Key Points Verizon's valuation is attractive in a market that's priced for perfection. The telecom giant shouldn't be affected much by tariffs. Its dividend gives Verizon a great head start toward providing double-digit total returns. 10 stocks we like better than Verizon Communications › Verizon Communications (NYSE: VZ) is on a roll. The telecommunications giant recently reported better-than-expected second-quarter results. Verizon raised its full-year guidance. For the 35th year in a row, J.D. Power recognized as having the best wireless network quality. I recently bought more shares of Verizon. However, my decision to add to my position had nothing to do with any of the aforementioned positives for the company. I completed my purchase before Verizon's Q2 update. Why did I just buy more of this ultrahigh-yield dividend stock? I've got a feeling As The Beatles sang on the rooftop of a London building in 1969, I've got a feeling. My feeling, though, isn't a warm and fuzzy one. I suspect another stock market selloff is on the way. Three underlying reasons form the basis of this hunch. First, the Buffett indicator is at an all-time high of 209%. This indicator reflects the total market capitalization of U.S. stocks as a percentage of U.S. GDP. Warren Buffett stated in a 2001 Fortune article that if this metric approaches 200%, "you are playing with fire." I don't find it surprising whatsoever that Buffett isn't buying many stocks these days. The second reason for my concern also relates to stock market valuation. The S&P 500 (SNPINDEX: ^GSPC) Shiller CAPE ratio is close to its second-highest level ever. Soon after the ratio peaked in early 2000, the stock market plunged as the dot-com bubble burst. After hitting its second-highest level in late 2021, the S&P 500 slid into a bear market. Third, I think the full economic impact of the tariffs implemented by the Trump administration has yet to be felt. Trade deals may reduce this impact somewhat, but the bottom line is that Americans will probably pay higher prices on many products. Even if some U.S. companies absorb the higher costs, that will translate to lower earnings. Either scenario could eventually affect the stock market. Verizon checks off the boxes Where does Verizon fit into all of this? The company and its stock check off the boxes for what I'm looking for in a time of uncertainty. Importantly, Verizon's shares aren't priced for perfection in a market that arguably is. The telecom stock's forward price-to-earnings ratio is below 9.2. That's a far cry from the S&P 500's forward earnings multiple of 22.7. It's also lower than the valuations of Verizon's largest peers, AT&T (NYSE: T) and T-Mobile US (NASDAQ: TMUS). The executives of many public companies have spoken extensively about tariffs in their quarterly updates. That's because concerns have mounted about how businesses will be affected by trade policies. Guess how many times tariffs were mentioned in Verizon's Q2 earnings call by either management or analysts? Zero. There's a simple reason tariffs haven't been a hot topic for Verizon: The company is largely resistant to the impact of tariffs. Furthermore, Verizon's business is somewhat resistant to overall economic downturns. Wireless services have become a must-have that consumers won't do without, even if they have to pinch pennies in other ways. What if the stock market and economy roar? My suspicion that the stock market could sink in the not-too-distant future could be totally off-base. The good news is that even if the stock market and economy roar, Verizon should still perform well. The company's business looks strong. It's on track to close the acquisition of Frontier Communications (NASDAQ: FYBR) in early 2026, which should boost growth. I can't leave out Verizon's dividend, either. The telecom giant's forward dividend yield of 6.3% gives Verizon a great head start in delivering double-digit percentage total returns. Thanks to a nice increase in free cash flow expected this year, that juicy dividend looks even more secure. I've got a feeling that Verizon will be a long-term winner regardless of what happens over the near term. Should you buy stock in Verizon Communications right now? Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Verizon Communications wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,799!* Now, it's worth noting Stock Advisor's total average return is 1,037% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Keith Speights has positions in Verizon Communications. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy. Why I Just Bought More of This Ultrahigh-Yield Dividend Stock was originally published by The Motley Fool
Globe and Mail
6 days ago
- Business
- Globe and Mail
Investors Should Still Avoid Verizon Stock Despite Rising Earnings. Here's Why.
Key Points 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. 10 stocks we like better than Verizon Communications › On the surface, Verizon Communications (NYSE: VZ) released a solid earnings report for the second quarter of 2025. The company benefited from rising revenue, earnings, and free cash flow, and a raised outlook bodes well for the communications stock 's progress. What the report did not do is alleviate concerns about one area of the balance sheet where the company has struggled for years. That strongly indicates that without one painful but critical move, Verizon stock will likely continue to struggle. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Verizon's ongoing concern Verizon's situation worsened in one key area: total debt. As of the midpoint of 2025, Verizon's total debt now stands at almost $146 billion. This is up from $144 billion at the end of last year as its unsecured debt, which typically carries higher interest rates, rose by $2 billion. However, when factoring in the total equity, or book value, of $104 billion, it becomes apparent how much strain these obligations place on the balance sheet. Admittedly, Verizon and its main competitors, AT&T and T-Mobile, have also depended heavily on debt to finance the construction and maintenance of their telecom networks. Verizon's debt was more manageable until 2021, when the company spent $52.9 billion to acquire C-band spectrum. Spectrum is a sort of "RF real estate" that grants Verizon the exclusive right to use a specific frequency in a geographic area. This was prime spectrum, which enabled many of its wireless service offerings. So why is the debt an issue? Indeed, the debt level itself is not necessarily an issue. Over the previous 12 months, Verizon spent $6.6 billion in interest expenses. This amounts to a slightly more than 4% in interest costs when factoring in the $154 billion in total debt, a relatively low rate. Nonetheless, interest rates have risen since 2021. Even though only around $2 billion of Verizon's debt is due this year, it will likely have to refinance that debt at a higher interest rate, meaning investors should assume that the cost will rise over time if its financial situation remains the same. Another factor is its dividend sustainability. Verizon has built an 18-year streak of payout hikes and likely wants to avoid the fate of AT&T, whose stock suffered for years after it abandoned a 35-year record of annual dividend increases in 2022. Verizon's dividend returns are also significantly above those of its peers. At $2.71 per share, its dividend yield is 6.4%. That is more than 5 times the S&P 500 average of 1.2%. It is also significantly higher than the yields of AT&T and T-Mobile, which return 4.1% and 1.4%, respectively. That dividend cost Verizon nearly $11.4 billion over the last 12 months. In a sense, it can cover this cost since it generated just over $20.1 billion in free cash flow during the same period. Still, with a dividend cut, Verizon could also use some or all of that $11.4 billion to retire debt. So far, Verizon has not done that, as its high yield likely makes the stock a draw for income investors. Also, if AT&T and other stocks are any indication, a dividend cut could lead to stock price declines in the near term. Nonetheless, lower debt levels would help stabilize the balance sheet. Over time, this could make the stock more attractive, as it has underperformed the market despite trading at a P/E ratio of 10. Income investors would suffer from both lower dividend income and falling stock prices in the near term. Conversely, the low P/E ratio may limit the downside. The improved finances could draw investors to the stock, possibly compensating for the lost dividend income in the long run. Making sense of Verizon stock Even with the positive earnings report, Verizon stock is likely a hold for now. While its dividend is generous, its high cost to the company and heavy debt burdens likely make the dividend's current trajectory unsustainable. That will lead to more struggles for Verizon stock if it lowers the dividend to better service its debt. However, investors should also note that AT&T remains a solid dividend stock despite slashing the payout. That indicates that as investors adjust to a new reality, rising earnings, a stronger balance sheet, and a low P/E ratio could make Verizon stock an attractive holding if it works harder to lower reduce its debt. Should you invest $1,000 in Verizon Communications right now? Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Verizon Communications wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,799!* Now, it's worth noting Stock Advisor's total average return is 1,037% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025
