Here's My Top High-Yield Dividend Stock to Buy in January

Core Viewpoint - The article discusses the potential of Verizon as a high-yield dividend stock, highlighting its solid business fundamentals and sustainable dividend payments despite slow growth in revenue [3][6][12]. Group 1: Dividend Performance - Verizon offers a quarterly dividend of $0.69, translating to an annual payout of $2.76, resulting in a dividend yield of 6.9% at its current price [4]. - The company has consistently increased its dividend, marking its 19th consecutive annual increase with a modest hike of 1.25 cents per share [5]. - Over the past 12 months, Verizon paid out approximately $11.4 billion in dividends, representing only 54% of its trailing-12-month free cash flow of over $21.1 billion [6]. Group 2: Business Growth and Stability - Verizon's revenue for the third quarter of 2025 increased by 1.5% year-over-year to $33.8 billion, driven by a 2.1% rise in wireless service revenue, which reached $21.0 billion [7]. - The company's consumer wireless retail postpaid churn rate was low at 1.12%, with wireless retail postpaid phone churn at 0.91%, indicating strong customer retention [9]. - Verizon's shares are trading at about 8.6 times earnings and 1.2 times sales, suggesting a valuation that assumes stability with potential for growth beyond current performance [8]. Group 3: Financial Health and Risks - Verizon carries significant debt, with total unsecured debt at 5.9 times its net income and net unsecured debt at 2.2 times its adjusted EBITDA, which could impact its financial flexibility [11]. - The competitive nature of the wireless network business poses risks, as consumer choices are heavily influenced by pricing and service bundles [10]. - Despite these risks, Verizon's current valuation may provide an attractive opportunity for income-focused investors seeking a high-yield dividend stock [12].