$VZ (Verizon) came to our portfolio in 2014, when it demerged from its partnership with Vodafone. Since then we enjoyed a steady inflow of cash from its steady dividend payments and we consistently increased the position by re-investing some of the cash when markets were down.
To everyone's surprise, the unexpected announcement of Hans Vestberg departure (CEO since 2018) led to a strong market reaction with share price dropping around 5%. Still, the new leadership makes me confident that Verizon will continue to be a stable, income-focused investment for years to come.
Dan Schulman, the new CEO was top man at PayPal and a long time $VZ board member. Also, the appointment of Mark Bertolini as Chairman of the Verizon Communications Board is hugely re-assuring. I had the pleasure to know Mr Bertolini when he was Aetna's CEO - one of top medical health insurers in US that was acquired by CVS Health in 2018. He has decades of executive experience in healthcare, finance and investment management.
$VZ reaffirmed its financial guidance for the rest of the year including the $20 billion Frontier Communications acquisition.
For our portfolio, $VZ continues to be a long term hold and we used this share price move to increase our existing position and we may add more if the price drops further.
Investment Highlights
High dividend: the dividend yield is substantial (around 6.3%), and the company has been increasing its dividend pay consistently for 19 years as of a September 2025 announcement. The dividend is considered well-covered by free cash flow.
Valuation: Multiple analysts suggest Verizon stock may be undervalued or fairly valued. Morningstar assigns a 4-star rating and a long-term fair value estimate of $53.00.
Stable business: As the largest wireless carrier in the US, Verizon benefits from a strong wireless network, efficient scale, and a solid customer base, which provides a "narrow economic moat."
Challenges
Limited growth: The telecommunications industry is mature, and Verizon's core consumer wireless business (about 75% of revenue) has modest growth prospects. Analysts typically forecast low single-digit annual revenue and earnings per share (EPS) growth (e.g., 1.8% and 5.8% annually, respectively). This low-growth profile means the stock is unlikely to deliver significant capital appreciation compared to high-growth sectors.
Competitive environment: The wireless market is highly competitive, with rivals like $TMUS (T-Mobile Us Inc) and $T (AT&T Inc) stepping up network investments. Increased competition, especially around pricing and promotions, could put pressure on Verizon's profit margins.
Debt: Like many telecom companies, Verizon carries a significant amount of debt.
Our view
Verizon has been a long term position in our diversified portfolio and over the years, the steady cash inflow from the dividend payments and the occasional trade in and out the position (on market lows) more than covered the initial investment so we will continue to enjoy the stable income this company provides for years to come.
What would be your 'hold forever' investment?
Have a great day!
Daniela
This is not financial advice. Before making any investment decisions, you should conduct your own thorough research.... Show More
We use our own and third-party cookies on our websites to enhance your experience, analyze traffic, and for security and marketing. For more info, see our Cookie Policy or go to Manage Settings.
Privacy Preference Center
When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.
More information
Manage Consent Preferences
Strictly Necessary Cookies
Always Active
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.
Performance Cookies
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Cookie List
label
ConsentLeg.Interest
label
label
label
Fri Nov 14 2025 21:19:51 GMT+0000 (Coordinated Universal Time)
