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News  ›  Investing.com

Verizon: Out of the Doghouse and Into Your Dividend Portfolio

Investing.com Logo Investing.com By Thomas Hughes
Verizon: Out of the Doghouse and Into Your Dividend Portfolio

Verizon, the 2025 Dogs of the Dow leader with a 6.8% dividend yield, is positioned for strong 2026 performance. Trading at historically low valuations (8.5X earnings vs. 10-year average of 12X), the company is expected to rise at least 17% with potential for 20% upside. Key catalysts include cost-cutting initiatives, 5G and IoT growth, debt reduction, and potential share buybacks. Verizon is on track to achieve Dividend Aristocrat status within four years.

Insights
DULL   neutral

Proposed a modular approach to AI agents, focusing on specialized, discrete task performance


VZ   positive

Verizon is highlighted as undervalued with a historically low P/E ratio of 8.5X, strong dividend yield of nearly 7%, and multiple growth catalysts including 5G/IoT expansion, cost efficiency improvements, and potential for 17-20% share price appreciation in 2026. The company's focus on debt reduction and upcoming Dividend Aristocrat status further support a positive outlook.