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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.

More News (VZ)

SpaceX buys $8B spectrum to launch new cell service, challenging US telecom giants.

SpaceX buys $8B spectrum to launch new cell service, challenging US telecom giants.

SpaceX, led by Elon Musk, has secured $8 billion worth of cellular spectrum licenses to build a terrestrial network complementing its Starlink satellite service. This move aims to fill coverage gaps using a combination of ground cell towers and satel...

Market News
Neutral
1 day ago
Verizon price target cut to $50 after SpaceX buys wireless spectrum for Starlink Mobile.

Verizon price target cut to $50 after SpaceX buys wireless spectrum for Starlink Mobile.

Scotiabank lowered Verizon's price target from $51.50 to $50 following SpaceX's acquisition of 14 MHz of wireless spectrum in the 800 MHz band for its Starlink Mobile network. This deal intensifies competition in the U.S. telecom market, pressuring V...

Market News
Bearish
1 day ago
Six dividend stocks, including Western Union, show warning signs of potential dividend cuts despite high yields.

Six dividend stocks, including Western Union, show warning signs of potential dividend cuts despite high yields.

Several dividend stocks like Western Union, FedEx, General Mills, Verizon, and Spectrum Brands are showing signs of potential dividend cuts despite some offering high yields. Western Union's yield is nearly 15%, but its stock has fallen significantly...

Market News
Bearish
2 days ago
SpaceX's Starlink expands mobile service, pressuring AT&T, Verizon, and T-Mobile shares.

SpaceX's Starlink expands mobile service, pressuring AT&T, Verizon, and T-Mobile shares.

SpaceX's Starlink is expanding its mobile service by acquiring up to 14 MHz of low-band spectrum, challenging major US wireless carriers like AT&T, Verizon, and T-Mobile. This spectrum will improve Starlink Mobile's coverage by allowing signals to tr...

Market News
Bearish
2 days ago
SpaceX rises 4% after buying nationwide low-band spectrum, pressuring Verizon and AT&T stocks down 7%.

SpaceX rises 4% after buying nationwide low-band spectrum, pressuring Verizon and AT&T stocks down 7%.

SpaceX's purchase of nationwide low-band spectrum enables its Starlink service to operate as an independent cellular network, challenging traditional carriers Verizon and AT&T, whose stocks fell 7% amid fears of increased competition. This move expan...

Market News
Neutral
2 days ago
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