The telecom giant's leverage ratio is about to go in the wrong direction.Verizon (VZ 3.84%) is one of the top dividend stocks in the S&P 500. The telecom giant's payout currently yields more than 6.5%. That puts it among the 10 highest yields in that broad market index, where the average is less than 1.5%. Further, the company recently increased its payout for the 18th straight year. That's the longest current streak in the U.S. telecom sector. A big factor driving Verizon's ability to continue increasing i ...

J Studios/DigitalVision via Getty Images The biggest complaint about Verizon Communications Inc. (NYSE:VZ) for years now has been the weak balance sheet. The wireless giant constantly places too much emphasizes into hiking the dividend annually and the BoD didn't fail to disappoint last week with a dividend hike and a large cash acquisition thrown on top. My investment thesis remains Neutral on the stock, with the balance sheet again stressed by these moves. Source: Finviz Dividend Just when Verizon was ...

Summary of Verizon Communications Inc. Conference Call Company Overview - **Company**: Verizon Communications Inc. (NYSE: VZ) - **Event**: Goldman Sachs Communacopia + Technology Conference - **Date**: September 9, 2024 - **Participants**: - Hans Vestberg - CEO and Chairman - Jim Schneider - Goldman Sachs Telecom Analyst Key Points Acquisition of Frontier Communications - Verizon announced the acquisition of Frontier Communications for **$20 billion** to expand its fiber footprint to **30 million fiber passings** by **2026** [4][5] - The acquisition aligns with Verizon's strategy to increase its Total Addressable Market (TAM) and sustain growth [6][7] - Frontier currently generates over **55%** of its revenue from fiber, indicating a successful transition from copper to fiber [7] - The acquisition is expected to be accretive to revenue growth and EBITDA from day one, with EPS and cash flow benefits anticipated within a year [8] Fixed Wireless vs. Fiber Strategy - Verizon maintains a dual strategy focusing on both fixed wireless and fiber, emphasizing customer optionality [11][13] - Fixed wireless access has a high Net Promoter Score (NPS) and is seen as a competitive product [12] - Verizon aims to reach **4 to 5 million fixed wireless access customers** and will provide updates on its broadband strategy thereafter [14] AI and Edge Computing Initiatives - Verizon has been investing in AI for over **10-15 years**, focusing on efficiency, personalization, and revenue generation [19] - AI applications have improved customer service efficiency, reducing call handling time and enhancing sales through better data utilization [20][21] - Verizon is well-positioned in Mobile Edge Compute, with partnerships with Google, Amazon, and Microsoft, anticipating growth in GenAI applications at the edge [22][23] Consumer Market Insights - The necessity for broadband and wireless connectivity has increased, with Verizon's consumer base showing high quality and FICO scores [28] - There has been no significant increase in bad debt or delinquency rates, and Verizon expects to reach **50%** of its consumer base on its premium offering, myPlan, within a year and a half [29] Wireless Market Dynamics - The wireless market is experiencing a third phase, with a shift in customer acquisition patterns and a focus on service revenue growth [36][37] - Verizon has implemented a more segmented approach to promotions, ensuring financial discipline while enhancing customer value [33][34] Competitive Landscape - Verizon views cable companies as both competitors and wholesale partners, maintaining a healthy relationship while competing in the wireless market [48][49] - The company has been financially disciplined in pricing strategies, focusing on value enhancement for customers [45][46] Future Outlook and Spectrum Needs - Verizon has a strong spectrum position with **1,600 MHz** on millimeter wave and **161 MHz** mid-band, but emphasizes the need for ongoing spectrum availability to maintain competitiveness [63][64] - The company urges the government to facilitate spectrum auctions to avoid future disadvantages in the telecom sector [64] Conclusion - Verizon is strategically positioned for growth through its acquisition of Frontier, dual focus on fixed wireless and fiber, and ongoing investments in AI and edge computing. The company remains committed to financial discipline and enhancing customer value while navigating a competitive landscape.

Verizon's $20 billion acquisition of Frontier comes with plenty of risks.Verizon (VZ -0.39%) announced a $20 billion acquisition of Frontier Communications Parent (FYBR 1.51%) this week in an effort to expand fiber services in the U.S. The price tag is high, but there's a reason this could pay off, and it has more to do with bundling than just fiber. Travis Hoium digs into the good and the bad of this deal in this video.*Stock prices used were end-of-day prices of Sept. 5, 2024. The video was published on S ...

The latest trading session saw Verizon Communications (VZ) ending at $41.31, denoting a -0.41% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.25%.The largest U.S. cellphone carrier's stock has climbed by 2.98% in the past month, exceeding the Computer and Technology sector's gain of 1.22% and lagging the S&P 500's gain of 3.42%.The upcoming earnings release of Verizon Commun ...

Verizon Communications Inc. (NYSE:VZ) Citi 2024 Global TMT Conference September 5, 2024 9:10 AM ET Company Participants Sowmyanarayan Sampath - President & CEO Joe Russo - Executive Vice President and President of Global Networks and Technology Conference Call Participants Michael Rollins - Citi Michael Rollins Welcome back to Citi's Global TMT Conference. A couple of things to mention. This session is for Citi clients only and disclosures are available at the back of the room near the AV desk. We're excite ...

Industry/Company Involved * **Company**: Verizon Communications Inc. (NYSE: VZ) * **Industry**: Telecommunications Core Points and Arguments 1. **Acquisition of Frontier**: Verizon announced the acquisition of Frontier to expand its fiber footprint and enhance its broadband offerings. This deal is expected to be accretive to EBITDA and revenue growth rates from the first time it closes. 2. **Fiber and Fixed Wireless Access (FWA)**: Verizon plans to expand its fiber footprint to 30 million homes by 2026 and provide FWA to 60 million homes. This will create a competitive broadband footprint and enable the company to offer high-quality broadband to a large portion of America. 3. **Customer Churn Reduction**: The integration of wireless and fiber networks is expected to reduce churn rates by 50% for mobility and 40% for fiber. This will increase the lifetime value of customers and drive revenue growth. 4. **Cost Savings**: The integration with Frontier is expected to generate $500 million in cost savings, with half of it coming from the network and half from go-to-market and G&A. 5. **Business Segment**: Frontier's business segment, which includes wholesale and SMB, will be a valuable addition to Verizon's portfolio. The company plans to leverage its converged offerings and strong NPS to grow this segment. 6. **Intelligent Edge Network (IEN)**: Verizon has completed the buildout of its IEN, which will enable the company to add more profitable connections and improve service performance. 7. **Capital Allocation**: The acquisition of Frontier aligns with Verizon's capital allocation strategy, which focuses on funding initiatives that drive shareholder value, paying down debt, and considering buybacks. 8. **Gen AI**: Verizon sees Gen AI as both a revenue opportunity and a way to reduce costs. The company is focusing on applying AI internally, using AI in its products and applications, and exploring new products and opportunities in the enterprise and consumer spaces. 9. **Consumer Group**: The consumer group is on track to deliver sustainable annual service revenue growth and EBITDA growth. This is driven by factors such as improved customer acquisition and retention, a strong product mix, and financial discipline. Other Important Points * **Ultra-Wideband Deployment**: Verizon is building out its ultra-wideband network, which will further expand its FWA footprint. * **5G Adoption**: Verizon is seeing strong momentum in 5G adoption, with 80% of its customers having devices that can take advantage of its network. * **B2B and IoT**: Verizon is focused on building out capabilities that allow for new use cases and applications in the B2B and IoT spaces. * **Prepaid Business**: Verizon's prepaid business is experiencing a turnaround, with 4 net add positive in the second quarter when excluding the SafeLink piece.

NEW YORK, Sept. 04, 2024 (GLOBE NEWSWIRE) -- The Board of Directors at Verizon Communications Inc. (NYSE, Nasdaq: VZ) today declared a quarterly dividend of 67.75 cents per outstanding share, an increase of 1.25 cents per share from the previous quarter. The quarterly dividend is payable on November 1, 2024, to Verizon shareholders of record at the close of business on October 10, 2024. This is the 18th consecutive year Verizon’s Board has approved a quarterly dividend increase. “Our strong focus on three k ...

It's allegedly in advanced talks to acquire a sizable peer.Is Verizon Communications (VZ -3.60%) about to open its wallet for a massive new acquisition?That was the scuttlebutt on the stock market Wednesday, and on potential news that the incumbent telecom might spend a pretty penny for a deal, investors traded out of its shares. In late-session trading Verizon's price was down by nearly 4%, a more dramatic slide than the 0.4% sag of the S&P 500 index at the point.A potential deal that could easily top $10 ...

NEW YORK, Sept. 04, 2024 (GLOBE NEWSWIRE) -- Hans Vestberg, Chairman and CEO of Verizon (NYSE, Nasdaq: VZ), is scheduled to speak at the Goldman Sachs Communacopia + Technology Conference on Monday, September 9, at 11:50 a.m. ET. His remarks will be webcast, with access instructions available on Verizon’s Investor Relations website, www.verizon.com/about/investors. Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand ...