Verizon (NYSE: VZ) is a classic story about a baby getting thrown out with the bathwater. There are many reasons for the market to fear in Q2 2025, but not regarding Verizon. While some internal metrics were lackluster or weak, there is a mitigating factor, and the telecom business remains fundamentally sound.
The sequential 28% decline in equipment sales and 67% contraction in retail additions align with the idea of economic stalling related to Trump's tariffs, policy changes, and seasonal trends. If equipment and retail additions remain weak, there may be cause for concern. Until then, Verizon’s high-yielding dividend is safe and reliable. The distribution is expected to grow, and the stock is cheap.
