Is Verizon Still a Defensive Dividend Stock After Soft Subscriber Growth?

Core Insights - The primary focus for Verizon Communications during earnings season is its postpaid phone subscriber numbers rather than revenue or profits [1] Subscriber Metrics - Verizon experienced a decline in postpaid wireless subscribers, losing 289,000 in Q1 2025 after adding 568,000 in Q4 2024, which was worse than the expected loss of 197,000 [3] - The churn in postpaid subscribers is attributed to price hikes, although total wireless service revenue increased by 2.7% to $20.8 billion [4] Broadband Performance - Broadband remains a strong area for Verizon, with 339,000 net additions in Q1, including 45,000 Fios internet and 308,000 fixed wireless additions, leading to a total of 12.8 million broadband connections, a 13.7$33.5 billion, and adjusted EPS increased by 3.5% to $1.19, slightly above analyst expectations [9] - The company maintains its full-year 2025 guidance, expecting wireless revenue growth between 2$18.73 billion in free cash flow over the past 12 months, with a coverage ratio of 1.8x for dividends paid [12] Valuation and Investment Outlook - Verizon trades at a forward P/E ratio of 9 based on 2025 earnings estimates, which is lower than AT&T's nearly 13 times multiple, suggesting it may be a better investment option [16] - Despite recent subscriber growth challenges, the overall business outlook remains solid, supported by new pricing strategies and broadband customer additions [14][15]