Where Verizon Stock Is Headed

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Where Verizon Stock Is Headed

Where Verizon Stock Is Headed In 2026

Verizon is one of those rare stocks that offer a high dividend yield of almost 5.5%. The best part is that Verizon has been raising its dividend every year for several decades.

Verizon makes most of its money from the sticky telecommunications subscriptions. But before buying the Verizon stock, it is important to take a look at the business fundamentals.

Verizon Faces Multiple Risks

Right now, one of the biggest risks faced by Verizon is competition. In simple words, Verizon still has to compete with other companies to attract its customers.

So, Verizon has to offer top-notch services at good rates, or it will lose customers to other cable and cellphone companies.

To put it simply, the pricing power of Verizon is limited while the capital spending is still very high. On top of that, Verizon has a lot of debt, but it is similar with otehr companies such as T-Mobile and AT&T.

Now, if we look at the good side, the top of the list is the dividend, which keeps increasing every year. In the last decade, the dividend yield of Verizon was only 2%, which has now gone up to 5.5%.

But, even this dividend yield is still below the inflation, which means the Verizon stock must also give capital gains to make it attractive for the investors.

However, Verizon also knows about its problems and is actively trying to fix the problem of slow growth. However, that is going to take a long time, which means the growth is not going to improve in a few months or one year.

With all things considered, Verizon stock is not a good option if you are thinking of buying it just for the dividends. The slow growth is not something that can be fixed overnight. In fact, it will take multiple years and consistent efforts for Verizon stock to make a turnaround.

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