Investors change their strategies from the growth of market uncertainty, caused by constant tariff disputes and widespread economic problems. They are looking for safety in historically defensive sectors, and as a result, the telecommunications sector experiences a revival of interest. Double growth of telecommunication giants Verizon NYSE: VZ and at & t. NYSE: T. Over the past three months, it emphasizes updated attention to these companies.
These installed telecommunication titans can appear as important protective anchors for portfolios, focusing on the complexity of the current economic climate. The search for stability and a reliable crop, in the visible crop, puts these familiar names in the spotlight.
Why is the phone sector shining in stormy weather
The telecommunication sector is traditionally seen as protective investments, especially attractive during economic downturn or instability in the market. This is due to the main nature of telecommunication services; The demand for communication remains relatively stable even during economic reductions, providing constant income flows for the main carriers, often based on repeating monthly subscriptions.
Created telecommunication companies, such as Verizon and AT&T, also offer attractive dividends. These companies provide a reliable flow of income and a buffer against reducing the price of shares, when increasing market valuation is uncertain. Such a combination of stable income and consistent dividends strengthens the attractiveness of the sector as a shelter during economic turbulence, explaining the historical tendency of capital entering telecommunications during periods of anxiety in the market.
Verizon: to communicate with confidence
Verizon Communications Dividend
- Dividend yield
- 6.03%
- Annual dividend
- $ 2.71
- Dividend increases the track record
- 20 years
- Annual growth of dividends 3-year
- 1.93%
- Dividend payment coefficient
- 65.46%
- The next payment of dividends
- Maybe. 1
VZ History of Dividends
Verizon Communications has recently provided tangible evidence confirming their protective powers, providing strong operating and financial results for the fourth quarter and full year of 2024. The company successfully fulfilled its financial management in 2024 and confirmed the positive prospects for 2025.
In the fourth quarter, the total operating revenue in 2024 increased by 1.6 percent compared to last year to $ 35.7 billion, which contributes to income for the whole year in the amount of 134.8 billion dollars. USA. The growth was noticeably due to wireless revenue from service, which reached $ 20.0 billion. The United States in the fourth quarter, noting 18 consistent quarters of sequential growth created by price actions and the expansion of fixed wireless access (FWA).
Verizon in the fourth quarter added about 1 million subscribers on mobile and broadband broadband access, including 568,000 post -paying pure phone additions and 373,000 FWA clean additions, as a result of which its FWA subscriber base amounted to almost 4.6 million. Strengthening his commitment to shareholders, Verizon declared quarterly dividends in the amount of 67.75 cents per share, emphasizing its track record of 18 years in a row of increase in dividends and current profitability of about 6.02%.
The company also announced plans to redeem approximately 984.8 million dollars. The United States from its 2.625%. Verizon analytical moods reflect cautious optimism, with a moderate rating of consensus and an average target price, which indicates a modest growth potential.
At & t: reunion of the value
At & t dividend payments
- Dividend yield
- 3.94%
- Annual dividend
- $ 1.11
- Annual growth of dividends 3-year
- -18.89%
- Dividend payment coefficient
- 74.50%
- The next payment of dividends
- Maybe. 1
T history of dividends
AT&T exceeded profit ratings in 4024 per share (EPS) with adjusted EPS 0.54 US dollars compared to estimates of consensus assessments of $ 0.48. The company announced a healthy growth of subscribers by adding 1.7 million post -paid pure phone additions and more than 1 million At & T. subscribers. The company creates a narrative of transformation and focuses on growth to strengthen its position as convincing protective investments.
Despite the small annual reduction in income until 2024 to $ 122.3 billion. USA, General Director John Stanka emphasized the company’s strategic attention to expand his 5G network and fibers as important for long -term cost and income. Thanks to the initiatives to reduce AT&T costs, it also seeks to provide more than $ 3 billion to the Runt speed by the end of 2027 and plans to start the purchase of shares in the second half of 2025, since it is approaching its clean goal of EBITDA, adapted.
The AT&T dividend yield is approximately 3.94%, although lower than Verizon has a steady payment coefficient. The recent results of the shares were positive, having reached new 52-week maxima, and several analysts update shares or increased price purposes, which will lead to a moderate rating of the consensus of purchase and indicates an increase in the market in the strategic direction of AT&T and financial prospects.
The choice of your connection
Verizon and AT&T demonstrate various characteristics when evaluating as protective shares. Verizon dividend profitability, which is approximately 6.02%, surpasses 3.94% AT&T, attracting investors oriented to the income, especially taking into account the consistent Verizon dividend growth compared to the recent AT&T dividends reduction.
Verizon also looks more attractive with the lower ratio of the P/E 10.87 based on the territory of income compared to 18.92 AT&T. While the predicted AT&T profit growth of 6.07% exceeds 3.62% Verizon, both companies carry a significant debt typical of the telecommunication sector, with comparable debt ratios to capital (AT&T in 1.00, Verizon in 1.21). Financially, Verizon surpassed At & T in 2024 with a higher annual income ($ 134.8 billion against $ 122.3 billion) and pure income ($ 17.5 billion against $ 11.0 billion).
Both shares have a moderate rating of the purchase consensus, but the average price indicators involve potential growth for Verizon, while the AT&T target is slightly lower than current levels, which reflects its recent positive performance.
A durable telecommunication signal
Verizon and AT&T promotions and increased interests of investors signal the potential revival of traditional shares of defensive telecommunications during the uncertainty of the market and economic meetings. Both companies demonstrated operational force: Verizon demonstrated the constant growth and profitability of shareholders, as well as AT&T focused on their main assets of the connection.
Their useful dividends are especially attractive in the flying market or savings.
Nevertheless, it is important to consider a significant level of debt in the sector, competitive pressure and regulatory landscape. Despite the fact that it is not completely immune to market risks, the main nature of their services provides some protection in turbulent times.
For investors who seek to strengthen the defensive position of their portfolio, Verizon and AT&T can serve reliable anchors, ensuring relative stability and receiving income in an increasingly uncertain market. They can be “unlikely heroes” of the market for those who are priority to preserve capital and profitability.
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