When it comes to stocks that can offer both income and upside, two of the world’s largest telecom companies are interesting places to look. Verizon Communications (NYSE: VZ) and AT&T (NYSE: T) both have substantial dividend yields of over 5%. Additionally, both can provide the potential for capital appreciation. Based on average Wall Street price targets, both show significant upside potential in their stock prices.
Verizon’s implied upside comes in at over 21%, while AT&T’s sits at 17%, based on Jan. 16 closing prices. If these figures come to fruition in 2025, the upside plus dividends would provide a not-too-shabby return on the year. In 2024, AT&T was the company that far and away delivered the superior combination of income and growth. The stock provided a total return of 44%. Verizon’s return was 13%. However, the question remains: which company is the better buy for 2025 and beyond? I’ll compare the strategies of the two firms to provide my take on this question.
