Verizon's 6.1% Dividend Yield and 5G Expansion Drive 1.01% Gain Despite 147th Trading Volume Rank

On September 4, 2025, Verizon (VZ) closed at $44.14, rising 1.01% as trading volume fell to $0.64 billion, a 32.62% drop from the prior day’s activity. The stock ranked 147th in trading volume among U.S. equities. Analysts highlighted Verizon’s defensive appeal, noting its 6.1% dividend yield and 20-year consecutive dividend growth streak. The company’s 5G expansion and $18.5 billion in 2024 free cash flow underscore its ability to sustain payouts while maintaining a 59% payout ratio.

Verizon’s position as a provider of essential services—mobile and broadband connectivity—positions it to benefit from stable demand during economic fluctuations. Recent bullish analysis emphasized its low beta of 0.36 and undervaluation relative to peers, with a forward P/E of 9.09. The stock’s inclusion in 65 hedge fund portfolios at the end of Q1 2025, down from 74 in the prior quarter, suggests shifting investor sentiment amid broader market rotations.

A September 3 article from MarketBeat cited Verizon as a potential beneficiary of a Federal Reserve rate cut, noting lower borrowing costs could enhance its 5G rollout efficiency and free cash flow. The telecom giant is scheduled to address the Goldman Sachs Communacopia Conference on September 8, offering insights into its strategic priorities amid a potential interest rate shift.

Backtesting data indicates VZ’s 5-year total return remains down 26.95%, though its 10.48% year-to-date gain outperforms the S&P 500’s 10.55% YTD return. Analysts project a 91.7% probability of a September rate cut, which could further bolster telecom stocks by reducing refinancing costs and improving margins.