Verizon Communications today
Verizon Communications
- 52 week range
- $37.58
▼
$45.36
- Dividend yield
- 6.85%
- P/E ratio.
- 17.04
- VALUE VALUE
- $46.43
After years of struggle, Verizon’s NYSE:VZ Turnaround is gaining traction and driving shareholder value. Its commitment to building the most significant 5G network in North America is paying off in increased share, penetration and customer satisfaction, supporting it for sustainable growth. Cash flow is another important factor, improving sequentially and year-over-year, enough to improve balance sheet health while reinvesting and paying dividends.
Among the critical takeaways for investors is that Verizon’s industry-leading deal with Blue-Chip, at less than half the S&P 500’s valuation, is up to 9 times forward earnings, down from yielding nearly 7% in early January. The meaning can’t last much longer.
Verizon Announces Beat and Raise Quarter for Q4 024
Verizon had a strong quarter in Q4 and into 2024, with revenue growing 1.7% year-on-year (YOY) in the quarter and beating MarketBeat consensus by 100 basis points. The arrival was driven by hardware and services growth, led by a 40% sequential increase in hardware sales.
The business and consumer segments were also strong, driving total subscribers up 26% year over year to set a ten-year record. FIOS, the fixed product offering, holds market share, with net add-ons at 9% and overall broadband reporting at 15%.
Margin News is also good. The company’s underlying margins were better than expected and were strengthened by one-time mark adjustments to the market. The bottom line is that adjusted earnings are up $0.02, about 1.85%, with cash flow and FCF growing year-over-year. FCF approached $20 billion for the year, including the vertical bridge tower deal. It added about $2 billion in cash for the year and won’t be repeated for another decade. Despite this, the adjusted FCF remains sufficient to support the capital return outlook and the additional cash has been put to good use; debt reduction.
Verizon reports subsequent debt reduction of $8.5 billion. USA. This translates into lower leverage and improved earnings quality, which is critical given the dividend outlook, which includes a strong early 2025 yield and growth expectations.
Verizon has increased its distribution annually for 20 years and is on track to be included in the Dividend Aristocrat Index. Inclusion in the index is a value driver for investors because it means increased ownership of all segments of the market: institutional, managed and retail.
Verizon issues strong guidance, with analysts seeing 18% growth in 2025.
Verizon Communications Dividend
- Dividend yield
- 6.85%
- Annual dividend
- $2.71
- Dividend increases track record
- 20 years
- Annual dividend growth 3-year
- 1.94%
- Dividend payout ratio
- 116.81%
- Next dividend payment
- February 3
VZ Dividend History
Verizon issued strong guidance, reaffirming analysts’ belief in a 2025 rebound. Guidance includes revenue growth of 2% to 2.8% with robust to slightly improved margins. Earnings are expected to grow 3%, producing another year of reliable cash flow. Cash flow and FCF are expected to last years due to the tower deal in 2024, but grow at the core level.
The guidance is consistent with analysts’ outlook for the stock price and could lead to positive changes. As is, the analyst trends include a solid hold pegged sentiment and a price target implying 18% of critical support targets, but there is a bullish bias to the sentiment.
A recent update and multiple price target revisions show this stock to be a strong buy with the potential to hit the high-end $50 to $55 range by year’s end. The move to consensus is enough to put the stock at a multi-year high, confirm the change and lift the market into a sustained uptrend.
Technical action is positive following the news. The market is up 1% in pre-trading on report morning and confirms support at critical levels.
This level corresponds to the previous support level and the midpoint of the established range, providing a strong signal for traders. If the market follows this signal, VZ stock should continue higher and repeat the top of the range soon. Critical resistance points are around $42.50 and $45.
Before you consider Verizon Communications, you’ll want to hear this.
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