Wall Street analysts rerated Verizon Communications VZ after the company reported its second-quarter results on Monday.Verizon reported quarterly revenue growth of 5.2% year-over-year (Y/Y), reaching $34.50 billion, topping the analyst consensus estimate of $33.57 billion. This growth was driven by its broad wireless and broadband offerings across market segments.Also Read: Verizon Teams Up With Nokia To Bring High-Tech 5G Boost To Busy British PortsVerizon reiterated a 2%-2.8% growth in wireless service re ...

Core Insights - Several companies are set to pay dividends in August, providing opportunities for income-seeking investors to earn steady returns while some also exhibit strong growth fundamentals that could enhance stock prices in the future [1] Group 1: AT&T (NYSE: T) - AT&T will pay a dividend of $0.28 per share, yielding 3.84%, to investors who owned the stock before the July 10 ex-dividend date [2] - The company has refocused on its core wireless and broadband businesses after years of costly acquisitions, presenting a stronger case as a long-term buy due to improved financials and a reliable dividend [2][3] - AT&T has shed non-core assets like DirecTV and Time Warner, concentrating on wireless and fiber connectivity, which has boosted profit margins and cash flow, allowing the company to pay down $45 billion in debt over the past four years [3] - The company generated over $40 billion in operating cash flow over the past year, sustaining its quarterly dividend of $0.2775 per share [4] Group 2: Verizon (NYSE: VZ) - Verizon is paying a dividend of $0.68 per share on August 1, representing a 6.26% yield for shareholders of record before July 10 [7] - The company continues to innovate in key growth areas, expanding its 5G portfolio with flexible wireless and broadband bundles to meet the growing demand for premium plans and streaming services [9] - Verizon has secured significant contracts, including a multibillion-dollar private 5G network in the UK and a dedicated 5G network slice for first responders, highlighting its competitive edge and potential for new revenue streams [10] - Despite challenges like high capital spending and competitive pressure, Verizon's scale and customer-focused strategy should reassure investors of its long-term stability [11]

Core Insights - AT&T and Verizon stocks have performed well in 2023, with AT&T up +20% and Verizon up +9%, providing a hedge against market volatility [1] - The expansion of 5G networks is driving investor interest, offering peak speeds of up to 10 gigabits per second and improved connectivity [2] AT&T Performance - AT&T added 324,000 postpaid wireless subscribers and 181,000 fixed wireless access subscribers in Q1 [3] - The company expanded its fiber-optic network by adding 600,000 new locations, aiming for 30 million fiber locations by the end of Q2 [3] - AT&T has consistently added over 200,000 fiber optic internet subscribers for 21 consecutive quarters [3] Verizon Performance - Verizon reported wireless service revenue of $20.8 billion in Q1, leading the industry [4] - The company added 308,000 new 5G Home Internet customers, with a total fixed wireless access subscriber base exceeding 4.8 million [4] - The 5G fixed wireless access market was valued at over $45 billion last year and is projected to exceed $238 billion by 2030, with a CAGR of 40.5% [4] Valuation Comparison - AT&T and Verizon are considered undervalued with forward earnings multiples of 13.2X and 9.3X, respectively, compared to T-Mobile's 22.8X [6][7] - Both companies trade under the optimal level of less than 2X sales, making them attractive to retail investors [7] Dividend Appeal - AT&T and Verizon offer attractive dividends, with annual yields over 4% and 6%, respectively, significantly higher than T-Mobile's 1.46% [9] Conclusion - Both AT&T and Verizon hold a Zacks Rank 3 (Hold), proving beneficial amid tariff concerns and economic uncertainty [12] - Long-term shareholders may be rewarded due to high dividends and ongoing 5G expansion [13]