Core Viewpoint - Verizon has experienced stagnant stock performance over the past decade, with a current stock price approximately 5% lower than it was ten years ago, despite offering a high dividend yield of over 6% [3][4]. Group 1: Stock Performance - A $10,000 investment in Verizon stock a decade ago would now be worth only $9,535, indicating a decline in stock value [3]. - Including dividends and assuming reinvestment, the total return on that investment has grown to over 60%, making it worth about $16,030 today [4]. - In comparison, a $10,000 investment in a top S&P 500 ETF would have grown to more than $38,800, highlighting Verizon's underperformance relative to the broader market [4]. Group 2: Growth Challenges - Verizon's revenue and earnings are currently growing at a low- to mid-single-digit rate, which is significantly slower than many competitors [5]. - The company has attempted to accelerate growth through acquisitions, such as AOL and Yahoo!, but these efforts have not yielded the expected results, leading to the sale of the media division for $5 billion in 2021 [5]. - Intense competition from other mobile and broadband carriers has further hindered Verizon's growth prospects [5]. Group 3: Future Outlook - Verizon is focusing on investing in 5G and fiber to restart its growth engine, but without a significant acceleration in growth, it is unlikely to produce market-beating total returns in the future [6]. - The attractive dividend remains a key appeal for income-seeking investors, despite the lack of growth [6].

Core Viewpoint - The article emphasizes the importance of holding high-yield dividend stocks for the long term, highlighting five specific companies that demonstrate sustainability in their dividends and growth potential. Group 1: AbbVie - AbbVie has successfully navigated the patent cliff of its leading drug Humira, which previously accounted for over 60% of its sales, and continues to grow despite declining sales from this drug [3][4] - The company has invested in research and development and made strategic acquisitions, positioning itself for long-term success [4] - AbbVie is recognized as a Dividend King, having increased its dividend for 53 consecutive years, with a payout increase of 310% since its spin-off from Abbott Labs in 2013, currently yielding 3.16% [5] Group 2: Enbridge - Enbridge operates with a low-risk, utility-like business model, transporting 30% of North America's crude oil and 20% of the U.S. natural gas, making it a stable investment [7][8] - The company is the largest natural gas utility in North America and is investing in renewable energy, projecting $50 billion in growth opportunities through the end of the decade [8] - Enbridge has a forward dividend yield of 5.71% and has increased its dividend for 30 consecutive years [9] Group 3: Enterprise Products Partners - Enterprise Products Partners is a midstream energy leader with over 50,000 miles of pipeline, transporting various energy products [10] - Unlike Enbridge, it does not operate a natural gas utility and is structured as a limited partnership, which may involve tax complexities [11] - The company offers a high distribution yield of 6.82% and has increased its distribution for 27 consecutive years [11] Group 4: Realty Income - Realty Income has provided positive operational returns every year since its NYSE listing in 1994, supported by a diversified property portfolio with 1,630 clients across 91 industries [12][13] - The company employs a triple-net-lease business model, transferring most costs to tenants, and has significant growth opportunities in Europe [13] - Realty Income currently yields 5.55% and has increased its payout for 30 consecutive years [14] Group 5: Verizon Communications - Verizon is one of the largest wireless providers globally, benefiting from high entry barriers in the wireless network market [15] - Despite past performance challenges, the company is currently generating industry-leading wireless service revenue and has potential growth with the rollout of 6G networks by the end of the decade [16] - Verizon's dividend yield is 6.17%, and it has increased its dividend for 18 consecutive years, with expectations for continued growth [17]

Core Insights - Verizon experienced significant service outages nationwide due to a "software issue," affecting wireless service for numerous users [1][4] - The company is actively working to identify and resolve the issue, with engineers engaged in the process [1] - Downdetector reported a spike in outage reports, with over 23,600 users affected at the peak of the issue [4] Service Impact - The outages primarily impacted users in major cities including Chicago, Atlanta, Orlando, Minneapolis, Tampa, Los Angeles, Omaha, and Indianapolis [5] - Reports of service disruptions began to surge around 3:30 p.m., with a decrease to just under 6,000 incidents by 9 p.m. [4] Customer Communication - Verizon acknowledged the inconvenience caused to customers and expressed appreciation for their patience during the resolution process [4]

Company Overview - Verizon Communications Inc. generated revenues of $134.8 billion in 2024, serving millions of customers globally and nearly all of the Fortune 500 [2]. Upcoming Events - Tony Skiadas, executive vice president and chief financial officer of Verizon, is scheduled to speak at the Citi 2025 Global TMT Conference on September 4 at 8:50 a.m. ET, with his remarks available via webcast [1].

Core Insights - Verizon Communications Inc. generated revenues of $134.8 billion in 2024, showcasing its strong market position and ability to meet customer demands for mobility and reliable network connectivity [2]. Group 1: Company Overview - Verizon is headquartered in New York City and serves customers worldwide, including nearly all of the Fortune 500 [2]. - The company focuses on delivering mobility, reliable network connectivity, and security to its millions of customers [2]. Group 2: Upcoming Events - Sowmyanarayan Sampath, Executive Vice President and CEO for Verizon Consumer, is scheduled to speak at the BofA Securities 2025 Media, Communications & Entertainment Conference on September 3, 2025, at 8:00 a.m. ET [1].

Core Insights - Verizon Communications Inc. is experiencing challenges in its Business Segment, with Q2 revenues of $7.27 billion, a slight decline from $7.3 billion year-over-year, primarily due to weaknesses in the public sector and wholesale business [1][8] - The company anticipates continued demand softness in the public sector, projecting a 1.8% revenue decline in enterprise and public sector business for 2025 [3][8] - High churn rates in wireless retail postpaid services are raising concerns, with a churn rate of 1.61% reported in Q2 [2][8] Business Segment Performance - Verizon's Business Segment generated $7.27 billion in Q2, down from $7.3 billion a year ago, with growth in business markets offset by declines in public sector and wholesale operations [1][8] - The company added 42,000 net customers in Q2, a significant drop from 135,000 net adds in the same quarter last year [2] - The expected revenue from enterprise and public sector business for 2025 is $13.95 billion, down from $14.2 billion in the prior year [3] Competitive Landscape - Verizon faces stiff competition from T-Mobile and AT&T, with T-Mobile reporting 830,000 postpaid phone net customer additions and a churn rate of 0.9% in Q2 [4] - AT&T's Business Wireline revenues fell 9.3% year-over-year to $4.31 billion, reflecting a shift in customer demand towards advanced IP-based services [5] Financial Metrics - Verizon's stock has gained 6.8% over the past year, compared to a 21.4% growth in the Wireless National industry [6] - The company's shares currently trade at a price/earnings ratio of 9.11, lower than the industry average of 13.63 but slightly above its own historical mean of 9.01 [9] - Earnings estimates for 2025 and 2026 have improved to $4.69 and $4.94, respectively, over the past 60 days [10]

Core Insights - Verizon Communications Inc. has elected Jennifer K. Mann, an Executive Vice President at The Coca-Cola Company, to its Board of Directors, effective immediately [1][2]. Company Overview - Verizon generated revenues of $134.8 billion in 2024, serving millions of customers and nearly all of the Fortune 500 [5]. Board Composition - With the addition of Ms. Mann, the Verizon board now consists of 11 directors, bringing a diverse mix of perspectives and expertise [2]. Ms. Mann's Background - Ms. Mann has 28 years of experience at Coca-Cola, where she has held various leadership roles, including President of the North America Operating Unit and President of Global Ventures [2][3]. - She has been responsible for overseeing significant acquisitions and investments, including the Costa Coffee acquisition and the investment in Monster Beverage Corp [3]. Educational and Community Involvement - Ms. Mann holds a B.A. in Accounting from Georgia State University and is involved with several charitable organizations, reflecting her commitment to community and education [4].

Investment Rating - The report maintains a "Weaker than Market" rating for the U.S. stock market [1] Core Insights - After a pullback, the U.S. stock market has shown significant recovery, with small-cap stocks outperforming [3] - The S&P 500 index increased by 0.3%, while the Nasdaq decreased by 0.6% [3] - Among 18 sectors, 12 experienced gains, with notable increases in banking (+3.2%), automotive (+2.9%), and energy (+2.8%) sectors [3] Price Trends - Small-cap value stocks (Russell 2000 Value) rose by 4.1%, outperforming small-cap growth (Russell 2000 Growth +2.6%) and large-cap value (Russell 1000 Value +1.7%) [3] - The report highlights that 18 sectors saw price increases, while 6 sectors faced declines, with the largest declines in food and staples retailing (-2.0%) and software and services (-1.9%) [3] Fund Flows - The estimated fund flow for S&P 500 constituents was +1.7 billion USD this week, a significant decrease from +75.8 billion USD the previous week [4] - Notable inflows were observed in automotive (+11.0 million USD), diversified financials (+4.6 million USD), and banking (+3.8 million USD) sectors [4] - Conversely, significant outflows were recorded in software and services (-29.9 million USD) and semiconductor products and equipment (-7.7 million USD) [4] Earnings Forecast - The report indicates a 0.3% upward revision in the 12-month forward EPS expectations for S&P 500 constituents, following a 0.2% increase the previous week [5] - 21 sectors saw upward revisions in earnings expectations, with the semiconductor sector leading with a +1.2% increase [5]

Core Insights - Verizon Communications Inc. and AT&T, Inc. are major players in the U.S. telecommunications industry, providing a wide range of communication services to various customer segments [1] - The U.S. telecom services market is projected to grow at a 6.6% CAGR from 2024 to 2030, with the Fiber to the home market expected to increase from $10.7 billion to $21.5 billion by 2030, reflecting a CAGR of 12.7% [2] AT&T Analysis - AT&T is modernizing its network infrastructure to capitalize on the 5G boom, driven by high-end applications such as AI, IoT, and C-V2X [3] - The company plans to deploy a nationwide mobile 5G network using millimeter wave spectrum in dense areas and mid- and low-band spectrum in suburban and rural regions, reaching 30 million locations with its fiber broadband network [4] - AT&T is collaborating with Ericsson to implement an Open RAN architecture, aiming for 70% of its wireless network traffic to utilize open-capable platforms by late 2026 [5] - The partnership with Microsoft will transition AT&T's 5G core to the cloud, enhancing productivity and service delivery [6] - Despite these advancements, AT&T faces intense competition from T-Mobile and Verizon, which could impact its margins [7] Verizon Analysis - Verizon is enhancing its 5G Ultra-Wideband coverage through extensive spectrum holdings, deep fiber resources, and small cell deployment [9][10] - The company employs a customer segmentation strategy to provide tailored solutions, which aids in client retention and revenue growth [11] - Verizon's high capital expenditures for 5G and fiber infrastructure may pressure margins, and the competitive landscape limits pricing flexibility [12] - The introduction of advanced use cases, such as the Edge Transportation Exchange for connected vehicles, aims to create new revenue streams [13] Financial Estimates - The Zacks Consensus Estimate for Verizon's 2025 sales and EPS indicates year-over-year growth of 2.51% and 2.4%, respectively, with upward revisions noted [14] - For AT&T, the 2025 sales estimate suggests a growth of 2.16%, while EPS is projected to decline by 9.29%, although estimates have trended upward [16] Price Performance & Valuation - Over the past year, Verizon's stock has increased by 9.6%, while AT&T has seen a gain of 50.8% [17] - Verizon's shares trade at a forward P/E ratio of 9.28, which is lower than AT&T's 13.41, indicating a more attractive valuation for Verizon [17] Conclusion - Both companies are rapidly enhancing their 5G and fiber broadband capabilities, but AT&T's customer-centric approach and strategic collaborations may provide a competitive edge in the postpaid wireless market [21]

Core Viewpoint - Verizon Communications has shown strong performance in its recent earnings report, surpassing estimates in both adjusted earnings and revenues, indicating solid growth in its wireless and broadband segments [2][4][5]. Financial Performance - Verizon reported Q2 2025 net income of $5.12 billion, or $1.18 per share, compared to $4.7 billion, or $1.09 per share, in the prior year, reflecting a positive trend in top-line growth [4]. - Total operating revenues increased by 5.2% to $34.5 billion, driven by service revenue growth and higher wireless equipment revenues, exceeding the consensus estimate of $33.58 billion [5]. - Adjusted earnings for the quarter were $1.22 per share, beating the Zacks Consensus Estimate by 4 cents [4]. Segment Performance - The Consumer segment saw revenues rise by 6.9% year over year to $26.65 billion, with service revenues up 2.1% to $20.26 billion and wireless equipment revenues increasing by 29.6% to $5.37 billion [6]. - The Business segment experienced a slight decline in revenues, down 0.3% to $7.27 billion, attributed to lower wholesale and enterprise revenues, which was below estimates [9]. Subscriber Growth - Verizon achieved industry-leading wireless service revenues of $20.9 billion, up 2.2% year over year, and added 278,000 fixed wireless access subscribers, bringing the total to over 5.1 million [3]. - The company recorded 65,000 wireless retail postpaid net additions in the quarter, with a churn rate of 1.61% [10]. Cash Flow and Liquidity - For the first half of 2025, Verizon generated $16.76 billion in net cash from operating activities, with free cash flow of $5.17 billion for the quarter [13]. Guidance - Verizon expects wireless service revenue growth in the range of 2%-2.8% for 2025, with adjusted EBITDA growth projected at 2.5%-3.5% [14].