Verizon: High Yield And AI Upside Make This Pullback A Strong Buy

Verizon is rated a 'Strong Buy' due to its undervaluation, 6.7% yield, and improving fundamentals under the new CEO. Key drivers include postpaid phone net adds, broadband momentum, Frontier fiber integration, and AI-driven efficiencies supporting margin expansion. VZ trades at 8.6x forward P/E, below historical and peer multiples, with double-digit total return potential combining yield and EPS growth.

There is always something on sale in the market, and that’s a great thing for income investors. Such is the case with Verizon ( VZ ), which I last covered a while back in August 2023, highlighting its very attractive valuation

I focus on stocks that are more defensive in nature, with a medium- to long-term horizon. I provide high-yield, dividend growth investment ideas in the investing group iREIT®+HOYA Capital. The group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%. Learn more.