Verizon

VZ

Market cap $167B

The yields look irresistible, but the risks are quietly piling up. Dividend growth may be far weaker than most investors expect. I'm shifting capital to a very different set of dividend growth investments.

Verizon Communications Inc. stands out among large caps with a 7%+ dividend yield, supported by robust free cash flow exceeding $20B annually. Despite a daunting $150B debt load, VZ's free cash flow coverage and net-debt-to-EBITDA ratio indicate the dividend remains secure for now. The recent CEO transition to PayPal veteran David Schulman introduces uncertainty, but his board experience and new customer-centric strategy could accelerate change.

UPS has had it rough, but the business looks more resilient than the stock chart suggests. Verizon is focusing on its strengths in its core wireless and broadband businesses.

MoneyShow presents top investment ideas for 2026 from their contributors. This year's edition presents a mix of metals plays, financial stocks, deep value names, high-octane growth and tech stocks, and beaten-down REITs that offer solid income and turnaround potential. Part 9 of this series includes Target Corp., The Trade Desk, UFP Technologies, Verizon, and Williams Companies.

Recently, Zacks.com users have been paying close attention to Verizon (VZ). This makes it worthwhile to examine what the stock has in store.

The last of the Baby Boomers are expected to retire this decade.

Enbridge, Realty Income, and Verizon offer a 6% average yield, ultra-durable business models, and sleep-well-at-night income for retirement portfolios. ENB provides diversified, inflation-protected cash flows with 98% of income from take-or-pay or regulated contracts and expects 5% annual EBITDA growth post-2026. O delivers a 5.3% monthly dividend, 30+ years of hikes, a defensive tenant mix, and trades below its historical AFFO multiple, offering potential valuation tailwinds.

Verizon's service outage last week hurt the company's public image and cost it some money. However, the company's long-term prospects and great dividend program haven't changed.

#StockPicks #DividendStocks #DividendInvesting Morningstar's Chief US Market Strategist shares his current dividend-paying picks. The 10 Best Dividend Stocks https://www.morningstar.com/stocks/10-best-dividend-stocks 00:00:00 Introduction 00:00:23 Verizon Communications VZ 00:01:08 Kraft Heinz KHC 00:02:05 Entergy Transfer ET 00:02:52 Healthpeak DOC 00:03:54 Realty Income O 00:04:49 Duke Energy DUK 00:05:54 Alliant Energy LNT 00:06:13 Why UPS, KEY, and LYB Are at Risk in 2026 00:08:35 Mondelez International MDLZ 00:09:34 Clorox CLX 00:10: 49 Devon Energy DVN Watch more from Morningstar: 3 Dividend Stocks for January 2026 https://youtu.be/hjcOfdscHnA?si=WeB-l6Hu5AGzv-AO 5 Stocks to Buy in January 2026 https://www.youtube.com/live/gsMbqNrp4GY?si=frBRfJeES__pnLCK 10 Top Dividend Stocks for 2025 https://youtu.be/1t9zi6L9yXw?si=0YP-qUidnPPKZEc_ Follow Morningstar on social: Facebook: https://www.facebook.com/MorningstarInc/ X: https://x.com/MorningstarInc Instagram https://www.instagram.com/morningstarinc/?hl=en LinkedIn: https://www.linkedin.com/company/5161/

It is possible to build wealth through dividend investing. While it isn't guaranteed that your investment will grow, you'll continue to enjoy passive income as long as you hold the stock.