10 Best Telecom Stocks To Buy Right Now

06. Verizon Communications Inc. (NYSE:VZ)

Average Analyst Share Price Target Upside: 12.98%

Average Analyst Share Price Target: $45.78

Verizon Communications Inc. (NYSE:VZ) has an average analyst price target of $45.78, offering a potential upside of 12.98%, reflecting optimism about the company’s growth prospects. In a recent development, on August 13, Verizon, the Atlanta Hawks, and State Farm Arena announced a new partnership for the 2024-25 season. As the Official 5G Wireless and Technology Partner, Verizon will boost connectivity at the arena with advanced network upgrades. The partnership will improve fan experiences and streamline event access and concessions. Verizon has already installed extensive 4G LTE and 5G coverage throughout the arena. This collaboration aims to strengthen Verizon Communications Inc. (NYSE:VZ) ties with Atlanta and support the city’s cultural and sporting scene.

Verizon Communications Inc. (NYSE:VZ) offers a forward dividend yield of 6.56%, with an annual payout of $2.66 and a payout ratio of 57.83%. The company has a 5-year dividend growth rate of 1.99% and has increased its dividend for 19 consecutive years. On August 13, TD Cowen upheld its Buy rating and $51.00 price target for Verizon Communications (NYSE: VZ). Key updates from a recent investor meeting include Verizon’s cautious stance on AI phone upgrades and its plan to complete C-Band spectrum deployment by end-2025. Verizon Communications Inc. (NYSE:VZ) reported a 3.5% increase in wireless service revenue, a 69% rise in subscribers, and improved Q2 2024 adjusted EBITDA of $12.3 billion, alongside a $3.2 billion reduction in net unsecured debt.

Ariel Global Fund stated the following regarding Verizon Communications Inc. (NYSE:VZ) in its fourth quarter 2023 investor letter:

“Global communications and technology leader, Verizon Communications Inc. (NYSE:VZ) also traded higher in the period following solid earnings results, highlighted by postpaid consumer net additions and an upward revision to free cash flow guidance. From a competitive and financial standpoint, we view Verizon to be among one of the best positioned telecoms in the world. The company’s solid long-term fundamentals are underscored by its predictable, recurring revenue streams and ~7% dividend yield. At current levels, Verizon is trading near an all-time low valuation presenting a compelling total return story for patient investors.”