10 Best Retirement Stocks to Buy According to Hedge Funds

7. Verizon Communications Inc. (NYSE:VZ)

Beta Value: 0.42

Dividend Yield: 6.34%

Number of Hedge Fund Holders: 74

Verizon Communications Inc. (NYSE:VZ) is a global leader in communication, technology, and entertainment services. The company’s Consumer and Business sectors provide a wide range of goods and services, including wireless and wireline solutions, and fixed wireless access (FWA) internet.

Back in December, Raymond James confirmed its outlook for Verizon Communications Inc. (NYSE:VZ), maintaining an Outperform rating and a target price of $48. The firm noted Verizon’s strong long-term fundamentals, consistent performance, and competitive dividend yields as key factors for its appeal.

Verizon Communications Inc. (NYSE:VZ) had a successful fiscal year in 2024, above expectations with a 3.1% gain in cellular service revenue and a 2.1% increase in adjusted EBITDA. In 2024, the firm earned an astounding $19.8 billion in free cash flow, allowing it to pay down debt and prepare for the planned acquisition of Frontier. In addition, the firm increased its dividend for the 18th consecutive year, with a quarterly distribution of $0.6775 per share.

Third Point Management stated the following regarding Verizon Communications Inc. (NYSE:VZ) in its Q3 2024 investor letter:

“While some economic activity has been showing signs of slowing, the defensive composition of the current high yield market with a high mix of higher quality credit and short duration has let the rates tailwind overwhelm such concerns. The lowest quality sectors of the market have performed best, fueled by both soft/no landing expectations, as well as two positive events in the beleaguered telecom space. Telecom/cable have been poor performers year to date due to overhang from the growth of FWA (aka “wireless cable”) and increased fiber building, however the sector re-rated materially on two deals. Second, Verizon Communications Inc. (NYSE:VZ) announced a deal to acquire Frontier Communications (FYBR), a transaction which the fund benefited from by virtue of its investment in FYBR debt. This transaction, aimed at increasing’s VZ fiber footprint, has led to broad revaluation of fiber retail networks that we think is appropriate. While we continue to expect to see FWA rapidly erode non-upgraded cable and especially copper’s share of the low-end broadband market, the VZ deal underscores the value of the higher end footprint.”