Is Verizon Still a Defensive Dividend Stock After Soft Subscriber Growth?

From Nasdaq: 2025-04-25 14:12:00

Verizon Communications (NYSE: VZ) disappointed with postpaid phone subscriber losses in Q1 2025, losing 289,000 after adding 568,000 in Q4 2024. Despite this, total wireless service revenue rose 2.7% to $20.8 billion due to price hikes. Verizon saw growth in broadband, adding 339,000 net additions in Q1. The company plans to expand its Fios passings and C-band deployment this year. Overall revenue increased 1.5% to $33.5 billion, with adjusted EPS up 3.5% to $1.19, beating analyst expectations.

Verizon maintains full-year 2025 guidance, expecting wireless revenue growth of 2-2.8% and adjusted EPS increase of 0-3%. The company projects operating cash flow between $35 billion and $37 billion. Verizon offers a robust forward dividend yield of about 6.4%, with its dividend well covered by free cash flow. Despite a weak quarter, Verizon’s overall performance remains strong, making it an attractive investment opportunity.



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