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Verizon Communications Inc
🇺🇸 VZ · NYSE/NASDAQ
Telecom
Price at analysis: USD 44.59 Current price: USD 44.41 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
11.6
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 44.59 ÷ 3.84 = 11.6
TTM period through: 2026-06-30
Forward P/E (estimated): 8.7
Based on analyst estimates
Reference: Provider P/E (Trailing): 11.6
Net Debt/EBITDA (TTM)
3.9x
Latest quarter: 15.3x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-06-30
Latest quarter (2026-06-30): 15.3x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
15.8%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
7.9x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
6.24%
TTM: 6.29%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 6.24%
Trailing Yield (TTM, last 12 months): 6.29%
Payout Ratio (Fwd)
73.7%
TTM: 71.9%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 73.7%
Payout (TTM): 71.9%
Cash Flow Payout (TTM): 30.0%
FCF Coverage (TTM): 1.73x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
2.0%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 09 Oct 2027 | — | USD | 0.708 |
| Forecast* | Quarterly | — | 10 Jul 2027 | — | USD | 0.708 |
| Forecast* | Quarterly | — | 10 Apr 2027 | — | USD | 0.708 |
| Forecast* | Quarterly | — | 12 Jan 2027 | — | USD | 0.69 |
| Declared | Quarterly | 09 Sep 2026 | 09 Oct 2026 | 02 Nov 2026 | USD | 0.708 |
| Paid | Quarterly | 04 Jun 2026 | 10 Jul 2026 | 03 Aug 2026 | USD | 0.708 |
| Paid | Quarterly | 30 Jan 2026 | 10 Apr 2026 | 01 May 2026 | USD | 0.708 |
| Paid | Quarterly | 04 Dec 2025 | 12 Jan 2026 | 02 Feb 2026 | USD | 0.69 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Verizon operates an essential digital infrastructure business within an entrenched oligopoly, generating robust cash flows that securely cover its attractive 6.35% forward dividend yield. While sentiment is currently weighed down by satellite competition fears and elevated leverage, the formal dismissal of major lead-cable lawsuits and a cheap 11.6x P/E valuation present a compelling entry point. Worth considering for new positions, and existing holders should maintain.
Sector Context
Telecom operators provide essential digital and physical infrastructure. Strict licensing, state right-of-way permitting, and massive capital requirements create deep oligopolistic moats. This makes them ideal DGI candidates, as their highly visible, recurring subscriber cash flows easily support high dividend payouts, provided debt remains manageable.
Temporary Opportunity Identified
The stock has experienced a recent selloff driven by macroeconomic inflation fears and headline risk regarding SpaceX's spectrum acquisition. However, Verizon's essential physical infrastructure, massive fiber backhaul, and recently dismissed legal liabilities confirm its core business remains intact.
📊 Strategy Analysis
- • Generates highly sustainable income with a 6.35% forward dividend yield, safely covered by a 1.73x FCF dividend coverage ratio and a low 30% cash flow payout.
- • Valuation is highly compelling at 11.61x TTM P/E, representing a significant discount for an essential infrastructure oligopoly.
- • Major structural legal overhangs, including multi-billion dollar legacy lead-cable class actions and significant patent infringement claims, have been formally dismissed or overturned, materially de-risking the stock.
⚠ What to Watch
- • Elevated leverage profile with Net Debt/EBITDA at 3.89x, which creates ongoing interest expense friction in a higher-for-longer rate environment.
- • Historical earnings growth has been challenged, reflected in a negative 5-year EPS CAGR of -5.3% due to heavy capital intensity and intense wireless competition.
- • Recent market sentiment has been negatively impacted by the emergence of satellite-to-cell capabilities (SpaceX/Starlink), creating a perceived, albeit unproven, threat to legacy cellular moats.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-10-17
Disclaimer: This information is for educational purposes only. Not financial advice.