10 Low PE High Dividend Stocks to Buy Now

3. Verizon Communications Inc. (NYSE:VZ)

Forward P/E Ratio: 8.77

Dividend Yield as of February 16: 6.61%

Verizon Communications Inc. (NYSE:VZ) is an American multinational telecommunications company that provides a wide range of communication services to its consumers. The company’s Q4 2024 earnings came in strong, with revenues amounting to $35.7 billion, up 1.6% from the same period last year. This growth was driven by a rise in customer additions across both mobile wireless and internet services. In the mobile wireless segment, the company added 568,000 net postpaid phone subscribers, an increase from 449,000 in the same quarter the previous year. Revenue from this segment grew 3.1% year-over-year to $20 billion, marking its 18th consecutive quarter of growth.

Verizon Communications Inc. (NYSE:VZ) has grabbed investors’ attention due to its strong cash flow and commitment to innovation. In fiscal year 2024, it reported $37 billion in operating cash flow, while free cash flow rose to $19.8 billion from $18.7 billion the previous year. Analysts remain optimistic about its prospects, especially after partnering with NVIDIA to develop an AI-powered enterprise solution that enhances AI applications on its secure 5G private networks using private Mobile Edge Computing. Moreover, the company is pursuing other AI-driven initiatives, including network slicing and satellite connectivity, to expand revenue streams and strengthen its market position.

Due to its strong cash generation, Verizon Communications Inc. (NYSE:VZ) was able to raise its payouts for 18 consecutive years, which places it on our list of the best dividend stocks. The company’s quarterly dividend comes in at $0.6775 per share and has a dividend yield of 6.61%, as of February 16.