Verizon (NYSE: VZ) has been a “disappointment” for investors in recent years. After flirting with $60 during the COVID pandemic, it bottomed out near $30 in late 2023 and is trading at about $44 currently.
As higher interest rates and fierce competition bruised the telecom giant, investors started viewing it more as a high-yield trap than a blue-chip staple.
However, 2026 has brought a dramatic reversal of fortune.
Under fresh leadership and a revitalized strategy, Verizon stock has transformed into a powerhouse “complete package” – blending robust growth with shareholder-friendly policies set to reward the patient.
Q4 earnings warrant buying Verizon stock
Verizon’s Q4 2025 earnings report, released today, was nothing short of a “mic drop” moment for the telecommunications firm.
The company didn’t just meet expectations – it shattered them by adding 616,000 postpaid phone subscribers – its best showing in six years.
This momentum is fueling a massive financial lift for 2026.
Verizon’s guidance for adjusted EPS of $4.90 to $4.95 is meaningfully “higher” than what analysts expected, proving it has finally figured out how to grow volume without sacrificing margins.
With free cash flow projected to hit at least $21.5 billion, the balance sheet is also looking healthier than ever, making VZ stock even more attractive for long-term investors.
VZ shares are worth owning on buyback announcement
Verizon shares are worth loading up also because the firm’s management is no longer just talking about “deleveraging”; it’s putting its money where its mouth is.
Alongside stellar earnings, VZ’s board authorized a staggering $25 billion stock buyback program. This is a massive psychological win for investors who have watched the share count stagnate for years.
By committing to repurchase at least $3 billion worth of its shares this year, Verizon is effectively creating a floor for the stock price.
This buyback plan signals management’s confidence that the heavy lifting of their “5G build-out” and Frontier acquisition is largely behind them.
Verizon shares pay a lucrative dividend
For income-focused investors, VZ shares have long been a go-to, but the “safety” of that yield was often questioned during the 2023 slump.
In 2026, those fears have vanished. Verizon bumped its quarterly payout to $0.7075 per share today – marking 22 consecutive years of dividend growth.
At current prices, this translates to a lucrative dividend yield of approximately 6.24%.
Unlike the “yield traps” of the past, this payout is backed by a comfortable payout ratio of roughly 57%, ensuring that the check in the mail is not just high but exceptionally secure for the long haul.
VZ stock is trading at an attractive valuation
Despite the aforementioned positives and the post-earnings surge, Verizon stock is currently going for about 8x forward earnings only – well below its historical average of nearly 12x.
Plus, it’s trading at a discount to peers, including AT&T, at a forward price-to-earnings (P/E) ratio of nearly 11 as well.
Simply put, in VZ, investors are essentially getting a market-leading utility with growing tech-like cash flows at a bargain-bin multiple.
In a market where many stocks are looking overextended, Verizon shares offer a rare combination of safety and “coiled spring” upside potential that is hard to ignore.
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