Verizon Stock Just Jumped 20% — But Is the Best Already Behind It?

For years, investors have disregarded a particular version of Verizon. Not too long ago, the stock was sitting in the mid-thirties with a dividend yield that seemed almost unbelievably high, while AT&T made headlines and T-Mobile played the role of the tenacious rival that was eating everyone’s lunch. In contrast, Verizon was just… there. steady, unglamorous, and simple to ignore. Then 2026 came, and things changed. VZ’s stock has increased 20.6% over the last three months, surpassing its wireless competitors and garnering the kind of attention that a telecom behemoth hardly ever seeks. Whether Verizon deserved the rally is not a question worth considering at this time. The question is whether the underlying business has undergone enough change to warrant continuing at the current prices.

In a nutshell, maybe. Since taking over as CEO in October 2025, Dan Schulman has made rapid progress, eliminating over 13,000 positions and framing it, in a somewhat clinical manner, as the start of a “efficiency journey.” Delivered during a January earnings call, that statement sounds better in a conference room than it does to the families who are affected by those figures.

Verizon Communications Inc (NYSE: VZ) — Company Profile

However, the market reacted favorably. Revenue for the fourth quarter of 2025 was $36.38 billion, up almost 2% from the previous year, and earnings per share exceeded projections by more than 3%. Annual profit and free cash flow forward guidance exceeded Wall Street expectations. That was sufficient for a stock that only months before had been trading close to multi-year lows.

It’s difficult to ignore how significantly Verizon’s pitch to investors has changed as a result of the fiber story. The company currently has 30 million fiber passings and is aiming for between 40 and 50 million. This is a massive infrastructure commitment that calls for perseverance, money, and the conviction that broadband, not just wireless, is where the real money settles in the long run. Verizon added 372,000 broadband net customers in the most recent quarter, including 319,000 fixed wireless additions. That is not insignificant. One of the company’s more persuasive growth levers, fixed wireless has evolved from a niche product, especially in regions where stringing fiber cables isn’t currently cost-effective.

This is further complicated by the acquisition of Frontier Communications. After obtaining all regulatory approvals in early 2026, Verizon is currently taking on a deal that will increase its presence in 31 states. Verizon’s wireless customers can access Frontier’s broadband infrastructure, and Frontier’s customers can access Verizon’s streaming and wireless bundles. It’s a convergence play, which Schulman is obviously betting on to lower customer attrition by connecting users to several services at once. It’s still unclear if that reasoning makes sense in a market where households are already overburdened with subscription obligations.

The most sincere justification for owning VZ is probably the dividend. Verizon has increased its dividend for 21 years running, and the yield, at about 5.9%, is almost twice as high as what most income-focused funds can find in similar large-cap names. The annualized payout is $2.83, with a quarterly payout of $0.7075 per share. Additionally, a $25 billion share buyback program operates in the background, giving the stock a structural floor when sentiment declines. This combination is genuinely attractive for retirees, income investors, and pension allocators who require yield without volatility—Verizon’s beta of 0.27 makes it one of the calmer large-cap options on the NYSE.

Uncomfortable tensions are still rising. In Q4, operating costs increased by 11% to more than $31 billion. Almost one-third of operating income was lost. The network expansion that is boosting subscriber growth is also depleting margins in ways that will take time to fix. By the end of 2025, AT&T will have reached 30 million consumer and business locations thanks to its aggressive fiber network expansion. T-Mobile appears to be unconcerned about the competition as they continue to upgrade their 5G infrastructure with patience. In order to remain competitive in a crowded market, Verizon is making significant investments, which often penalize free cash flow before rewarding it.

On April 8, DBS Bank downgraded the stock from Buy to Hold with a $52 price target. It felt more like a gentle tap on the shoulder than a warning. According to the analyst, Verizon has already worked hard enough that there isn’t much room for growth in the near future. Raymond James, who has an outperform rating and a $56 target, disagrees. Scotiabank set its target at $54.50 after moving to sector outperform in March. The consensus is at $50.56, which is, at most, a slight increase from current levels. The easy money seems to have been made.

By late 2026, it’s possible that the Frontier integration proceeds without a hitch, fiber subscriber growth picks up speed, and Schulman’s efficiency push begins to show up in margins. In retrospect, the current price appears inexpensive if that occurs. However, Verizon has made commitments in the past, such as regarding the commercial potential of 5G and the sustainability of dividends when the stock appeared to be in trouble. The company’s track record is one of gradual, methodical execution rather than abrupt changes. With 146 million wireless subscribers, a yield that keeps income investors patient, and a current price range of between $47 and $48, it appears less like a stock at a turning point and more like one that has earned a moment of cautious respect. Depending on the type of investor looking, that may or may not be sufficient.