Verizon: Out of the Doghouse and Into Your Dividend Portfolio

Core Viewpoint - Verizon is positioned as the top stock in the 2025 Dogs of the Dow list, with a dividend yield of approximately 6.8%, and is expected to outperform the index in the coming year [2] Group 1: Financial Performance and Projections - Verizon is trading at a historically low valuation, which positions the company to pay dividends and potentially deliver a double-digit total return for investors in 2026 [2] - The Dow Jones Industrial Average is forecasted to advance by as much as 13% in 2026, indicating a favorable market environment [3] - Analyst consensus predicts Verizon's stock to rise by at least 17% in 2025, with a potential high-end target of an additional 20% [4] Group 2: Strategic Initiatives - 2026 is anticipated to be a pivotal year for Verizon, as the company has focused on cost-cutting, debt reduction, and investments in broadband and 5G, which are yielding positive results [5] - Verizon has opted not to repurchase shares in 2025, prioritizing debt reduction and cash flow enhancement instead, with a buyback authorization of approximately 100 million shares, or about 2.4% of the outstanding share count [6] Group 3: Market Position and Support - Verizon is the highest-yielding stock among the Dogs of the Dow for 2025, attracting institutional accumulation that provides a solid support base and limits downside risk [7] - A CEO transition and the unused buyback authorization could serve as significant catalysts for the company if cash flow continues to improve [7] - Despite expectations for margin widening and growth in 2026, analyst forecasts remain conservative, predicting low-single-digit revenue growth with slightly better earnings growth [8]