Verizon Communications (VZ) is gaining traction in the market, with its stock up over 15% year-to-date and a robust 6.1% dividend yield. The company recently reported first-quarter results that exceeded analyst expectations, showcasing a 3.3% increase in net income and a 7.6% rise in adjusted earnings per share—its best growth rate since 2021. This performance, coupled with a positive turnaround in customer metrics, highlights Verizon’s operational improvements under new CEO Dan Schulman.
The financial implications are significant, as Verizon raised its full-year adjusted earnings-per-share guidance to between $4.95 and $4.99, reflecting a stronger outlook for growth. Additionally, the company is committed to shareholder returns, completing $2.5 billion in share repurchases in Q1 and maintaining a substantial free cash flow forecast of at least $21.5 billion.
For market professionals, Verizon’s combination of a reliable dividend, aggressive buyback strategy, and improved earnings growth presents a compelling case for inclusion in income-focused portfolios, despite ongoing competitive pressures.
Source: fool.com