Verizon (NYSE: VZ) has been a “disappointment” for investors in recent years. After flirting with $60 during the COVID pandemic, it bottomed out near $30 in late 2023 and is trading at about $44 currently.
As higher interest rates and fierce competition bruised the telecom giant, investors started viewing it more as a high-yield trap than a blue-chip staple.
However, 2026 has brought a dramatic reversal of fortune.
Under fresh leadership and a revitalized strategy, Verizon stock has transformed into a powerhouse “complete package” – blending robust growth with shareholder-friendly policies set to reward the patient.
Q4 earnings warrant buying Verizon stock
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Verizon’s Q4 2025 earnings report, released today, was nothing short of a “mic drop” moment for the telecommunications firm.
The company didn’t just meet expectations – it shattered them by adding 616,000 postpaid phone subscribers – its best showing in six years.
This momentum is fueling a massive financial lift for 2026.
Verizon’s guidance for adjusted EPS of $4.90 to $4.95 is meaningfully “higher” than what analysts expected, proving it has finally figured out how to grow volume without sacrificing margins.
With free cash flow projected to hit at least $21.5 billion, the balance sheet is also looking healthier than ever, making VZ stock even more attractive for long-term investors.
VZ shares are worth owning on buyback announcement
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Verizon shares are worth loading up also because the firm’s management is no longer just talking about “deleveraging”; it’s putting its money where its mouth is.
Alongside stellar earnings, VZ’s board authorized a staggering $25 billion stock buyback program. This is a massive psychological win for investors who have watched the share count stagnate for years.
By committing to repurchase at least $3 billion worth of its shares this year, Verizon is effectively creating a floor for the stock price.
This buyback plan signals management’s confidence that the heavy lifting of their “5G build-out” and Frontier acquisition is largely behind them.
Verizon shares pay a lucrative dividend
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For income-focused investors, VZ shares have long been a go-to, but the “safety” of that yield was often questioned during the 2023 slump.
In 2026, those fears have vanished. Verizon bumped its quarterly payout to $0.7075 per share today – marking 22 consecutive years of dividend growth.
At current prices, this translates to a lucrative dividend yield of approximately 6.24%.
Unlike the “yield traps” of the past, this payout is backed by a comfortable payout ratio of roughly 57%, ensuring that the check in the mail is not just high but exceptionally secure for the long haul.
VZ stock is trading at an attractive valuation
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Despite the aforementioned positives and the post-earnings surge, Verizon stock is currently going for about 8x forward earnings only – well below its historical average of nearly 12x.
Plus, it’s trading at a discount to peers, including AT&T, at a forward price-to-earnings (P/E) ratio of nearly 11 as well.
Simply put, in VZ, investors are essentially getting a market-leading utility with growing tech-like cash flows at a bargain-bin multiple.
In a market where many stocks are looking overextended, Verizon shares offer a rare combination of safety and “coiled spring” upside potential that is hard to ignore.
