Verizon Communications (VZ) impressed with strong Q2 2025 results, raising full-year free cash flow outlook to $19.5 billion-$20.5 billion. Global telecom spending may hit $1.42 trillion in 2025, a 4% increase, signaling ongoing demand. Verizon, up 5.6% in the past year, trades at a low forward P/E of 9.2x with a 6.4% dividend yield.

Q2 revenue reached $34.5 billion, up 5.2% YoY, with adjusted EPS at $1.22. Free cash flow was $8.8 billion, reflecting smart cost control. Despite gains in 5G and AI, Verizon faces postpaid churn due to price hikes. Analysts expect modest wireless revenue growth and little churn improvement through the year.

Verizon raised full-year guidance, with adjusted EBITDA expected to grow between 2.5%-3.5%. Analysts are bullish, with RBC Capital raising target to $46 and Raymond James to $47. The stock maintains a “Moderate Buy” consensus with an average price target of $48.17, implying 13% upside potential.

Verizon’s post-earnings rally underscores its appeal to dividend-focused investors, with strong free cash flow and analyst support. Despite challenges, Verizon’s stability and high yield position it as a reliable investment option.

Read more at Yahoo Finance: After Surprising Earnings Pop, Should You Buy This High-Yield Dividend Stock?