Dividend Stocks Overview - Dividend yield is a key metric for investors, indicating how much a company pays in annual dividends relative to its stock price [1] - The sustainability of a company's dividend yield is often assessed through its dividend payout ratio, which shows the percentage of net income distributed as dividends [1][3] - A high dividend yield may result from a declining stock price, which could indicate underlying issues [2] Altria Group (MO) - Altria Group has a dividend yield of 6.83% and an annual dividend of $4.08, with a payout ratio of 68.34% [5][6] - The company has a strong track record of 56 consecutive years of dividend increases and an annualized 3-year dividend growth of 4.35% [5][8] - Despite the decline in traditional tobacco smoking, Altria is pivoting towards alternative nicotine products, which may support future revenue and earnings growth [7] - The stock has delivered a total return of over 609% in the last 15 years, and its current P/E ratio of 9x indicates it is undervalued compared to its historical performance [6][7] United Parcel Service (UPS) - UPS has a dividend yield of 6.88% and an annual dividend of $6.56, with a high payout ratio of 95.63% [9][10] - The company has a history of maintaining dividends even during economic downturns, with a cash flow payout ratio of 66% [10] - UPS is undergoing a turnaround plan that is expected to improve margins, and its P/E ratio is around 14x, which is a discount to historical averages [11] Verizon Communications (VZ) - Verizon has a dividend yield of 6.25% and an annual dividend of $2.71, with a payout ratio of 64.52% [12][14] - The company has a 20-year track record of dividend increases, but its recent total return over 10 years is only 45.22% [13][14] - Verizon is facing challenges with subscriber losses but has received FCC approval for a deal to acquire Frontier, which may enhance its competitive position [13][14]

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 [3]. Upcoming Events - Frank Boulben, senior vice president and chief revenue officer for the Consumer Group of Verizon, is scheduled to speak at the Cowen Technology, Media & Telecom Conference on May 28, 2025, at 10:15 a.m. ET, with his remarks available via webcast [1]. Financial Information - For details on Verizon's most recent financial results, the company's 1Q25 earnings results are available [2].

Core Points - Verizon Communications Inc. held its annual meeting virtually, where shareholders elected all 10 directors for a one-year term [1] - Shareholders approved two management proposals and rejected three shareholder proposals related to climate lobbying, lead-sheathed cables, and advertising discrimination risks [1] - The final vote results will be certified by independent inspectors and posted on Verizon's website [2] Financial Performance - Verizon generated revenues of $134.8 billion in 2024, serving millions of customers and nearly all Fortune 500 companies [3] Corporate Governance - The compensation for named executive officers was approved as outlined in the 2025 proxy statement [4] - Ernst & Young LLP was ratified as the independent registered public accounting firm for the company [4]

Core Insights - Verizon Communications (VZ) shares have increased by approximately 2.5% since the last earnings report, underperforming the S&P 500 index [1] - There is uncertainty regarding whether this positive trend will continue or if a pullback is imminent [1] Estimates Movement - Estimates for Verizon have trended downward over the past month, indicating a negative shift in expectations [2] VGM Scores - Verizon holds a Growth Score of B, but has a low Momentum Score of F; however, it has an A grade for value, placing it in the top quintile for this investment strategy [3] - The overall aggregate VGM Score for Verizon is B, which is relevant for investors not focused on a single strategy [3] Outlook - The downward trend in estimates suggests a negative outlook for the stock, with a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [4]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, aiding investors in selecting stocks with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Concentrates on a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks with upward or downward price trends, utilizing factors like one-week price change and monthly earnings estimate changes [5] VGM Score - Combines all three Style Scores to provide a comprehensive indicator for investors seeking attractive value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model based on earnings estimate revisions, helping investors build successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still carry risks due to downward earnings outlooks [10] Company Spotlight: Verizon Communications (VZ) - Verizon Communications, formed from the merger of Bell Atlantic and GTE Corp, is a leading provider of communication services in North America [11] - Currently rated 3 (Hold) with a VGM Score of B and a Value Style Score of A, indicating attractive valuation metrics [12] - The forward P/E ratio stands at 9.43, and the Zacks Consensus Estimate for fiscal 2025 is $4.69 per share, reflecting positive earnings revisions [12][13]

Nearly half (47%) of SMBs updated their cybersecurity solutions to further protect their business. More than a third (38%) are actively using AI across multiple business functions, such as data analysis, marketing and customer service. Over 56% of SMBs believe AI can help address issues with employee management and overall employee headcount. 3 in 4 (76%) of SMBs agree that social media positively impacts their business performance. But more than half (54%) of SMBs struggle to keep online content fresh and ...

Core Points - Verizon Communications Inc. challenged T-Mobile US, Inc. regarding savings claims in its advertising materials, leading to a recommendation from the National Advertising Division (NAD) to discontinue these claims [1][5] - T-Mobile modified its savings claims to explicitly reference streaming services but still conveyed that consumers switching from Verizon could save 20% based solely on plan costs [2][3] - NAD found that T-Mobile's disclosures were not clear about the conditions under which the 20% savings claim applied, including the requirement to purchase three lines of service at a specific tier [4] Group 1 - The NAD recommended that T-Mobile discontinue the challenged savings claims due to misleading implications about savings [5] - T-Mobile expressed disappointment with the NAD's decision and plans to appeal to the National Advertising Review Board (NARB) [5] - The NAD's findings highlight the importance of clear and conspicuous advertising disclosures to avoid consumer confusion [4][8] Group 2 - The National Advertising Division serves as an independent body that reviews advertising truthfulness and promotes fair competition [8] - BBB National Programs, which oversees the NAD, has been enhancing consumer trust in business for over 50 years through various self-regulation programs [7]

Verizon Communications on Friday said that it's ending its diversity, equity and inclusion (DEI) programs amid a probe by the Trump administration into those practices, as the telecom giant seeks federal approval for an acquisition. Federal Communications Commission (FCC) Chair Brendan Carr criticized Verizon in February for its promotion of DEI programs, saying it could factor into the review of Verizon's planned acquisition of Frontier Communications for $20 billion, including debt. Verizon said in a lett ...

Core Viewpoint - Verizon Communications is terminating its diversity, equity, and inclusion (DEI) programs following scrutiny from the Trump administration and as it seeks approval for its $9.6 billion acquisition of Frontier Communications [1][7]. Group 1: Changes in DEI Programs - The company is removing its "Diversity and Inclusion" website and eliminating references to DEI from employee training [2][4]. - Verizon will no longer maintain any workforce diversity goals and will discontinue a component of its management compensation plan that aimed to increase the representation of women and minorities in its US workforce [4][5]. - The changes are effective immediately, as stated by Verizon's chief legal officer, who acknowledged that some DEI policies could be linked to discrimination [5]. Group 2: Regulatory Context - FCC Chair Brendan Carr expressed approval of Verizon's decision to end its DEI policies, framing it as a step that promotes equal opportunity and nondiscrimination [6]. - Carr had previously opened a probe into Verizon's promotion of DEI programs, indicating a broader regulatory scrutiny of such initiatives in the telecom sector [1][8].

Verizon (VZ) 2025 Conference Summary Industry Overview - The conference focused on the telecommunications industry, specifically Verizon's strategies and performance in the consumer wireless market and broadband services. Key Points and Arguments Consumer Wireless Business - Verizon has introduced a new five-year price lock guarantee to enhance customer confidence and satisfaction, addressing consumer feedback on price predictability and transparency [2][4][6]. - The "MyPlan" initiative has been successful, with 40-50% of the customer base already transitioned to this plan, which has resulted in significant revenue growth despite a reduction in price premiums [5][6]. - In April, Verizon experienced double-digit growth in gross additions, indicating strong customer resonance with the new pricing strategies [7]. Churn and Revenue Growth - The company reported higher churn rates in Q1, primarily linked to customer cohorts affected by recent price increases [10][12]. - Verizon aims for a balanced approach to service revenue growth, targeting an 80-20 ratio between price increases and volume growth [9][44]. - The churn is expected to stabilize in the second half of the year as the impact of price increases diminishes [11][54]. Market Dynamics - The overall market for postpaid services is projected to grow between 8 million to 8.5 million in 2025, with a significant portion attributed to the migration from prepaid to postpaid plans [22][27]. - The prepaid segment has shown resilience, with Verizon achieving strong results despite broader market challenges [31][32]. Convergence Strategy - Verizon is focusing on convergence, with 16% of its customer base currently utilizing converged services, and plans to double this figure in the coming years [69][70]. - The company aims to cover 100 million homes with broadband services, leveraging both fiber and fixed wireless access (FWA) [70][76]. Fixed Wireless Access (FWA) - Verizon targets 8 to 9 million FWA subscribers by 2028, with strong demand and market share growth observed in both Tier 1 and Tier 2/3 markets [78][86]. - The company has seen significant net additions in broadband, with a focus on maintaining a sustainable business model without jeopardizing its mobility network [80][81]. Financial Discipline and Cost Management - Verizon has maintained a disciplined approach to pricing and promotions, with expectations that promotional amortization will peak in 2025 and then stabilize [54][56]. - The company has not experienced overall cost increases in fiber deployment, with a reported 10% reduction in costs year-over-year due to improved technology and operational efficiencies [96][97]. Value Proposition - Verizon's value proposition centers on having the best network and providing significant value through transparent pricing and unique offerings like the MyPlan and MyHome initiatives [99][102]. - The company emphasizes that value is not solely about price but includes the overall customer experience and service quality [102]. Additional Important Insights - The competitive landscape remains intense, with Verizon maintaining a robust credit check policy for postpaid plans, differentiating itself from competitors who have relaxed standards [33][34]. - The company is strategically positioned to adapt to economic fluctuations, with a focus on segmentation and tailored offerings across various customer demographics [39][40]. This summary encapsulates the key discussions and insights from the Verizon 2025 Conference, highlighting the company's strategic initiatives, market dynamics, and financial outlook.