We recently compiled a list of the 12 Most Undervalued Dow Stocks to Buy According to Analysts. Verizon Communications Inc. is one of them.
Verizon Communications Inc. (NYSE:VZ), one of the U.S.’s largest telecommunications providers, is strengthening its market position with solid financial results, dividend growth, and new technology partnerships.
The company reported strong second-quarter performance in 2025, prompting an upward revision of its guidance for adjusted EBITDA, EPS, and free cash flow. Building on this momentum, VZ announced a 1.8% dividend increase to $0.69 per share, effective November 3, 2025. This marks the 19th straight year of dividend growth and results in a 6.3% yield, supported by a sustainable payout ratio of about 63%. With its consistent track record, Verizon is often highlighted among the most undervalued stocks in the telecom sector.
Verizon Communications Inc. (NYSE:VZ) is also leading efforts to shape the future of wireless technology. It co-launched the Industry 6G Alliance with partners including Ericsson, Samsung, Nokia, Meta, and Qualcomm to drive the next generation of connectivity. Meanwhile, its 5G Ultra Wideband network continues to expand into mission-critical applications. As part of its Verizon Frontline initiative, the firm recently deployed more than 950 5G-enabled smartphones to the Tampa Police Department to enhance emergency communications.
In September 2025, the business deepened its collaboration with Meta by becoming the first carrier to offer the new AI-powered Meta Ray-Ban Display glasses. The partnership reflects VZ’s push to integrate advanced wearable technology into its network ecosystem, offering customers new connectivity experiences.
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Beyond technology, Verizon Communications Inc. (NYSE:VZ) underscored its long-term corporate presence with the relocation of its headquarters to PENN 2 in Midtown Manhattan, expected to be completed by 2026.
While we acknowledge the potential of VZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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