Verizon's Aggressive Leadership Is Paying Off Big Time
"Collect a 6% Yield While You Wait For Shares To Potentially Re-Rate Higher"
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Current Price: $46.59
Dividend/Yield: $0.71/5.99%
Over the past several years, I’ve been in and out of Verizon Communications (VZ).
A few months ago, I rotated into T-Mobile US (TMUS), which has significantly outperformed over the past 3–5 years thanks to aggressive growth.
At the time, TMUS looked like the better opportunity after its pullback.
But after Verizon’s latest earnings report… It’s clear something has changed.
The Comeback Story Is Starting To Take Shape 💪🏾
Verizon is finally showing real momentum again:
Aggressive leadership is executing
Subscriber growth is turning positive
Buybacks are back on the table
EPS growth is accelerating
If management continues to deliver, Verizon may slowly work its way back toward its former strength — when shares traded comfortably above $60.
What Changed? Execution.
Verizon’s Q1 results weren’t just “good” — they were different.
EPS: $1.28 (beat estimates, +7.6% YoY)
Revenue: $34.4B (+2.7% YoY)
Postpaid phone net adds: +55,000
That last number matters most. It marked the first positive Q1 postpaid phone net adds in 13 years. That’s not noise — that’s a trend shift.
Growth Is Back On The Table ↗️
This is where things get interesting.
Management raised guidance:
EPS: $4.95 – $4.99
Growth: ~5.6% YoY
Free Cash Flow: ~$21.5B (+7%)
For a company like Verizon, that’s meaningful.
Not hyper-growth — but steady, improving execution.
Capital Returns Are Finally Working 👏🏾
Verizon is doing what investors have been waiting for:
💰 $25B Buyback Program
💰 $2.5B repurchased in Q1 alone
💰 $5.4B returned to shareholders
Dividend remains strong:
Yield: ~6%
Payout ratio: ~76% (manageable)
As free cash flow grows, that payout ratio should normalize over time.
The Valuation Is Still Cheap 🏧
Even after a double-digit move higher, Verizon remains:
Forward P/E: <10x
Yield: ~6%
Compared to peers:
AT&T → ~11x
T-Mobile US → ~16–17x
Verizon is still the cheapest of the group.
The Re-Rating Opportunity 📝
Here’s the real upside case:
If Verizon simply executes and earns back investor confidence…A multiple expansion to 12x–13x is reasonable.
That implies: $59–$60/share over the next 12–24 months
Not explosive growth — but a classic income + re-rating story.
The Risks (That Actually Matter) ⚠️
Let’s not ignore reality.
1. Debt Load
Total debt: ~$172.5B
Leverage: ~2.6x
Telecom is capital intensive — but rising debt still matters.
2. Macro Pressure
Ongoing geopolitical tension + rising oil prices could:
Keep inflation elevated
Delay rate cuts
Pressure valuation multiples
3. Competition & Disruption
Amazon (AMZN) + GlobalStar (GSAT) deal
Potential satellite/mobile overlap
Continued pressure from TMUS
Not a death blow — but worth watching.
Bottom Line ✅
Despite recent gains, I’m maintaining my Buy rating on Verizon Communications.
Because sometimes…
👉🏾 The best opportunities aren’t the fastest growers
👉🏾 They’re the ones quietly fixing the
Over the past several years, I’ve been in and out of Verizon Communications.
A few months ago, I rotated into T-Mobile US, which has significantly outperformed over the past 3–5 years thanks to aggressive growth.
At the time, TMUS looked like the better opportunity after its pullback.
But after Verizon’s latest earnings report…It’s clear something has changed.
What do you think of Verizon’s new leadership? Let me know in the comments.
Just a note to let readers know I will be going paid soon. Be on the lookout for the article laying out the details. Feel free to provide any feedback!
Happy Investing!
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Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.
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Nice read! I am curious what you think about their debt load. Has gone up from 168b to 181b at end of 2025, and I think it went up again in Q1. It could put a dent in dividends.