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Verizon's $20B Frontier deal boosts service revenue growth to nearly 3% with strong dividends, seen as a great buy.

Analyst Insights
11 Sep 2026
Seeking Alpha
View Source
Bullish
Verizon's $20B Frontier deal boosts service revenue growth to nearly 3% with strong dividends, seen as a great buy.

Verizon's $20 billion acquisition of Frontier has accelerated its service revenue growth to 2.9% year-over-year in the first half of 2026, with expectations of over 3% growth in the second half. The deal also drives strong broadband subscriber gains and benefits from the convergence of mobile, broadband, and fiber services, which lowers customer churn. Despite increased debt and some risks like weaker wireless equipment sales and seasonal slowdowns, Verizon offers attractive dividend yields above inflation and solid free cash flow, making it a compelling investment opportunity with ongoing growth momentum.

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