Verizon's Turnaround Is Gaining Momentum. Is This 6.5%-Yielding Dividend Stock a Buy?

Verizon (VZ) is trading at just 8.5x earnings with a 6.5% dividend yield, even as its turnaround gathers pace. That combination is drawing a buy rating from the analyst behind the source piece.

Third-quarter results drive the thesis. VZ added 406,000 postpaid phone customers, an 820% year-over-year increase. Management also raised full-year guidance for the third consecutive quarter, a pattern that signals consistent execution rather than a one-off beat.

New AI infrastructure partnerships with Amazon (AMZN) and Google (GOOGL) add a growth leg beyond the core wireless business. The source frames these as additional drivers; no revenue contribution was quantified, so their earnings impact remains unproven.

The analyst projects roughly 10% annualized returns, which includes the 6.5% yield. Interpretation: the dividend does most of the heavy lifting, leaving only a few points a year to come from price appreciation or multiple expansion from the current 8.5x.

The flagged risk is potential competition from SpaceX (SPCX). The source names it as a threat but offers no timeline or subscriber-loss estimate, so treat it as a narrative overhang rather than a quantified headwind.