TLDR
- On June 29, Verizon exits the Dow Jones Industrial Average, replaced by Alphabet (GOOGL), triggering a 2.3% share decline to $45.68.
- The telecom giant maintains a 6.1% dividend yield — the sector’s highest — with quarterly distributions of $0.7075 per share scheduled for August 3.
- Goldman Sachs maintains a Buy rating and $56 target price, projecting over 1.17 million net postpaid customer additions through year-end.
- Q1 fiber broadband subscriptions surged 42% to 10.8 million, partially driven by the $20 billion Frontier Communications deal.
- Fifth Third Wealth Advisors expanded its VZ holdings by 64% during Q1, contributing to 62.06% institutional ownership.
Shares of Verizon Communications slid 2.3% to $45.68 Wednesday following confirmation that the Dow Jones Industrial Average will swap VZ for Alphabet starting June 29. The change marks a significant milestone — eliminating the final traditional telecom carrier from the index after AT&T’s 2015 exit.
Verizon Communications Inc., VZ
Trading commenced Thursday at $45.70, within a 52-week trading range spanning $38.39 to $51.68.
Index removal aside, VZ has delivered approximately 12% gains in 2026, significantly outperforming both AT&T and T-Mobile, which have each posted roughly 10% declines year-to-date.
The index restructuring doesn’t alter the dividend equation. Verizon distributes $0.7075 quarterly — translating to $2.83 annually — producing a 6.2% yield that tops all major U.S. telecom carriers. AT&T’s comparable yield stands at 5%. Shareholders on record July 10 will receive the upcoming payment on August 3.
With free cash flow generating $4.82 per share, the $2.83 annual distribution remains well-supported. CEO Dan Schulman, the former PayPal executive now leading the company, has characterized the dividend as “ironclad,” maintaining a two-decade streak of consecutive annual increases.
Customer Additions and Frontier Integration
The company recorded 55,000 net postpaid phone customer additions during Q1 — marking its first positive Q1 result in this metric since 2013. Schulman’s strategy of streamlining plan options and enhancing customer support is generating tangible results that haven’t escaped Wall Street’s attention.
Goldman Sachs analyst Michael Ng maintains a Buy recommendation with a $56 target, suggesting 23% appreciation potential from current pricing. His forecast calls for net postpaid additions exceeding 1.17 million annually, surpassing management’s 750,000–1 million guidance range.
The broader analyst community shows greater divergence: 12 Buy ratings, 17 Hold recommendations, and a consensus target of $51.89 according to FactSet data. Even this moderate view implies approximately 13% upside.
Earnings projections have trended higher recently. The consensus 2026 EPS forecast now stands at $4.95, climbing from $4.79 earlier this year, aligning with company guidance of $4.95–$4.99. First-quarter results exceeded expectations with $1.28 EPS versus $1.21 consensus on $34.44 billion revenue, representing 2.7% year-over-year growth.
Fiber broadband customers expanded 42% to reach 10.8 million during Q1, incorporating approximately 2 million subscribers from the $20 billion Frontier acquisition finalized in January. Fixed wireless customers similarly grew 24% to 6 million.
Institutional Confidence Builds
While the Frontier transaction increased leverage, Verizon reports retiring approximately half the acquisition-related debt and maintaining its path toward 2027 leverage objectives, anticipating $1 billion in cost synergies by 2028.
Fifth Third Wealth Advisors increased its VZ position 64% during Q1, expanding holdings to 164,082 shares valued at $8.24 million. Multiple other institutional investors similarly enlarged their stakes. Institutional ownership now represents 62.06% of outstanding shares.
The company also executed $2.5 billion in share buybacks during Q1, with plans for an additional $500 million repurchase program later in 2026.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
