Verizon is getting a boost in Amazon’s data center. Should You Buy High Yield Dividend Stocks Here?

In the era of generative AI, data is the new electricity, and the power lines that feed it are high-capacity fiber routes. These fiber networks form the backbone of modern computing, enabling ultra-fast data transfers between sprawling data centers that power everything from real-time analytics to massive analytics. artificial intelligence (AI) model training. Without them, the AI ​​revolution simply cannot work.

That’s where Verizon Communications (VZ) has intervened. Recently, the telecommunications company announced a new partnership with Amazon Web Services to build high-capacity fiber routes linking AWS data centers in key regions. Under the “Verizon AI Connect” initiative, the company will establish long-distance, low-latency routes designed to handle the heavy traffic of next-generation AI workloads. It’s a timely move that strengthens Verizon’s deep relationship with AWS and underscores how telcos are quietly becoming the muscle behind the AI ​​boom.

But with VZ stock still moving cautiously, should investors tune in now as it trades at an attractive valuation?

About Verizon Stock

Verizon Communications, headquartered in New York, is one of the world’s leading names in connectivity, driving the way people, businesses and governments communicate. With a market capitalization of around $166.4 billion, Verizon is best known for its robust network, reliable coverage, and ultra-fast data speeds. The company’s backbone lies in its wireless business, which generates approximately 75% of its service revenue and serves millions of postpaid and prepaid phone users throughout the United States.

Beyond mobile, Verizon expands its reach through landline telecommunications services, connecting millions of homes and businesses, many of them powered by its ultra-fast Fios fiber technology. Constantly evolving, the company continues to invest heavily in 5G and fiber technologies, consolidating its role as one of the country’s leaders in performance and quality in an increasingly connected world.

However, the wireless provider’s stock has been on a bumpy road. fell approximately 3.81% in the last 52 weeks and a 9.06% discount just last month. But after a mixed third quarter and some optimistic comments from analysts, VZ shows glimpses of life. Trading volume has increased, suggesting renewed investor interest, as the company’s new CEO, Daniel Schulman, on the third quarter earnings conference call last week, signaled a major strategic reset.

Technically, the setup looks slightly encouraging. He 14 day RSI it stands near neutral around 43.87, suggesting that the stock is neither overbought nor oversold. Most notably, the MACD line (orange) just crossed above the blue signal line, a bullish sign that momentum may be moving higher. The histogram turning positive reinforces that sentiment, showing that buying strength is building beneath the surface.

With Schulman leading a turnaround and Verizon partnering with tech giants like Amazon (AMZN) to bolster its data and fiber backbone, stocks could be gearing up for a more connected and secure rally.

VZ stock looks like a bargain. Priced at just 8.4 times forward earnings and 1.2 times forward sales, it is priced below both its industry peers and its own history, making it a quietly compelling pick for value hunters in the telecom sector.

Meanwhile, for income investors, Verizon has long been the quiet heavyweight that consistently pays dividends. The company has raised its dividend for two decades, a streak based on discipline and shareholder loyalty. On November 3, it handed out its latest quarterly dividend of $0.69 per share, which translates to an annualized dividend of $2.76.

That gives Verizon a attractive 6.95% yieldone of the richest in the telecommunications sector. With a forward payout ratio hovering around 57.3%, the company strikes a smart balance between rewarding investors and maintaining enough cash to reinvest in its network and manage debt. In a volatile market, Verizon remains the stable revenue driver investors can count on, quarter after quarter.

Verizon Stock Rises After Third Quarter Results

On October 29, Verizon launched its third quarter 2025 earnings reportand the stock rose 2.3%. Revenue amounted to 33.8 billion dollarsan increase of 1.5% year-over-year, and adjusted earnings per share increased 1.7% year-over-year to $1.21. While earnings beat expectations, revenue fell just short of estimates, a minor miss on an otherwise solid performance. Driving the revenue growth was a 2.1% increase in wireless services revenue to $21 billion, along with a 5.2% increase in wireless equipment sales to $5.6 billion.

Verizon’s broadband engine continued to fire, adding 261,000 fixed wireless customers, raising its base to nearly 5.4 million, well on its way to its goal of 8 million to 9 million by 2028. The company also saw 61,000 new Fios Internet customers, bringing total broadband additions to 306,000, although traditional Fios Video subscriptions fell by 70,000 as Transmission alternatives are gaining strength.

Meanwhile, free cash flow – the lifeblood of Verizon’s rich dividend – hit $15.8 billion through the first nine months of 2025, up from $14.5 billion a year ago.

Management reaffirmed full-year guidance, projecting wireless revenue growth of between 2% and 2.8%, EBITDA earnings of 2.5% to 3.5% and FCF of between $19.5 billion and $20.5 billion.

Meanwhile, analysts following the stock are anticipating fourth-quarter earnings per share of $1.08. down 1.8% year-on-yearwith revenues of approximately $36.1 billion. But for fiscal 2025, EPS is expected to rise 2.2% year-over-year to $4.69, and then rise another 4.3% year-over-year to $4.89 in fiscal 2026.

What do analysts expect from Verizon stock?

Verizon stock has been slowly climbing out of the red, trying to regain Wall Street’s full confidence, and analysts have a lot to say about its next move.

With a “Moderate Buy” consensus, Verizon may be preparing for a more stable signal in the future. Of the 30 analysts monitoring telecom stocks, eight suggest a ‘strong buy’, three recommend a ‘moderate buy’ and the majority of 19 analysts play it safe and advise a ‘hold’.

The average analyst price target for VZ is $47.15, indicating an upside potential of 20.5%. The Street’s high price target of $58 suggests the stock could rise as much as 49% from here.

On the date of publication, Sristi Suman Jayaswal had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, see Barchart’s Disclosure Policy here.