{
  "id": 16656544,
  "title": "Verizon's Turnaround Is Gaining Momentum. Is This 6.5%-Yielding Dividend Stock a Buy?",
  "url": "https://urgent.news/2026/10/26/verizons-turnaround-is-gaining-momentum-is-this-6-5-yielding-dividend",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-26T20:00:02.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/26/verizon-s-turnaround-is-gaining-momentum-is-this-6-5-yielding-dividend-stock-a-buy/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "Verizon's (VZ) turnaround is gaining momentum, making the high-yield dividend stock a potential buy. The telecommunications giant added 406,000 postpaid phone customers in the third quarter, a 820% year-over-year increase. Earnings and cash flow have also improved, leading to a raise in the company's full-year outlook for the third straight quarter. Verizon's stock is trading at less than nine times expected earnings and yields 6.5%, making it an attractive investment option.\n\nThe company's strong third-quarter earnings grew 8.3% to $1.31 per share, surpassing the 7.6% growth rate in the first quarter, its best since 2021. Verizon also set new records in postpaid phone net adds in five years and the highest quarterly net account growth in over a decade. Lower churn rates year over year have contributed to expanding margins and strong cash flow. Quarter cash flow from operations reached $11.5 billion (up 2.2% year-over-year), and free cash flow was $7.8 billion (up 12.1% year-over-year).\n\nFree cash flow generated $18 billion through the first nine months of the year, surpassing capital expenditures of $11.9 billion. This has covered Verizon's dividend payments of $8.8 billion through the first nine months and allowed for stock repurchases of $4 billion year-to-date. Verizon's improved performance led the company to boost its full-year guidance for the third straight quarter, targeting 7%-7.5% adjusted earnings-per-share growth and 12% free cash flow growth.\n\nThe telecom giant's success is not limited to its core wireless and broadband businesses. Verizon recently expanded its strategic partnership with Amazon Web Services with a landmark AI infrastructure deal valued at over $2 billion and signed a deal worth more than $1 billion with Google. CEO Dan Schulman also mentioned talks with additional companies on similar deals.\n\nVerizon's stock is currently trading around $43, down nearly 8% over the past month due to a post-earnings slump and potential competition from SpaceX. The company's valuation is now at about 8.5 times earnings, within its expected range of $5.04-$5.06 per share. Despite its slow growth rate, Verizon offers a high dividend yield, making it a potentially attractive investment.\n\nWhile growth remains uncertain, if Verizon can sustain its mid- to high-single-digit annual growth, it could deliver low- to mid-teens annualized total returns, accounting for dividend income and potential multiple expansion. However, if growth slows, returns may only reach the high single digits at best. Overall, Verizon's turnaround is showing measurable results, its valuation is modest, and its dividend is well covered by free cash flow, making it a strong candidate for a buy after earnings.",
  "summary": "Verizon had one of its best quarters in years.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "Verizon's Turnaround Is Gaining Momentum. Is This 6.5%-Yielding Dividend Stock a Buy?",
        "url": "https://urgent.news/2026/10/26/verizons-turnaround-is-gaining-momentum-is-this-6-5-yielding-dividend-16657334",
        "published": "2026-10-26T20:20:02.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}