Verizon: Raised Guidance, 1.75X Coverage, Strong Yield

  • Verizon beat Q2 earnings and revenue estimates, driven by strong broadband subscriber growth and momentum in fixed wireless. Raised FY 2025 free cash flow outlook to $19.5-20.5B, implying a robust forward dividend coverage ratio of 1.75X for income investors. Despite solid fundamentals, I believe Verizon must accelerate debt repayments to unlock further upside and re-price its shares.