MarketBeat·2025-03-31 13:00Core Insights - Investors are shifting strategies towards defensive sectors like telecommunications due to rising market uncertainty from tariff disputes and economic concerns [1][2] - The telecommunications sector is experiencing renewed interest, with companies like Verizon and AT&T showing double-digit growth [1][2] Industry Overview - The telecommunications sector is traditionally viewed as a defensive investment, maintaining stable demand even during economic downturns, which ensures consistent revenue streams [2][3] - The essential nature of telecommunication services makes this sector attractive during periods of market instability [2][3] Company Performance: Verizon - Verizon reported a 1.6% year-over-year increase in total operating revenue for Q4 2024, reaching $35.7 billion, contributing to a full-year revenue of $134.8 billion [5] - The company added nearly 1 million postpaid mobile and broadband subscribers in Q4, including 568,000 postpaid phone net additions [6] - Verizon's dividend yield stands at 6.03%, with a history of 20 years of dividend increases and a current payout ratio of 65.46% [4][6] Company Performance: AT&T - AT&T exceeded Q4 2024 EPS estimates with an adjusted EPS of $0.54, reporting strong subscriber growth with 1.7 million postpaid phone net additions [8][10] - The company’s full-year 2024 revenue decreased slightly to $122.3 billion, but it is focusing on expanding its 5G and fiber networks for long-term value [9][10] - AT&T's dividend yield is approximately 3.94%, with a payout ratio of 74.50% [8][10] Comparative Analysis - Verizon's dividend yield of 6.02% is higher than AT&T's 3.94%, making it more attractive for income-focused investors [11] - Verizon has a lower P/E ratio of 10.87 compared to AT&T's 18.92, indicating a more favorable valuation [12] - Financially, Verizon outperformed AT&T in 2024 with higher annual revenue and net income figures [12] Market Sentiment - Both Verizon and AT&T have a moderate buy consensus rating, with analysts showing cautious optimism about their strategic directions [7][13] - The heightened investor interest in these telecom stocks suggests a potential resurgence during market uncertainty [14]