Verizon's Outage Outraged Over 1 Million Customers. Why I Just Bought the Stock Anyway.

Core Viewpoint - Verizon Communications is facing a temporary setback due to a service outage affecting over 1 million customers, but its long-term growth prospects and attractive dividend remain intact, making it a potential investment opportunity [1][9]. What Hasn't Changed with Verizon - Verizon's long-term growth prospects are unchanged, with improving free cash flow and anticipated growth from the introduction of 6G wireless networks by the end of the decade [4]. - The acquisition of Frontier Communications is expected to close on January 20, 2026, expanding Verizon's fiber access to nearly 30 million homes and businesses [5]. - CEO Dan Schulman plans to aggressively transform the company's culture, cost structure, and financial profile, while the forward dividend yield exceeds 7%, with a 19th consecutive annual increase in dividends reported in Q4 2025 [6]. What Has Changed (a Little) - The costs from the recent outage may exceed $20 million in credits to affected customers, and some customers may consider switching carriers, but historical data suggests that the impact on Verizon will be temporary [7]. - A past incident with AT&T, where a service outage led to a 40% increase in share price afterward, indicates that Verizon may experience a similar recovery [8].