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Verizon: 5G Future and 6.58% Dividend Yield

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  Published in Stocks and Investing on Saturday, January 24th 2026 at 14:04 GMT by 24/7 Wall St
      Locales: Delaware, Texas, Pennsylvania, New York, UNITED STATES

The Enduring Appeal of Dividends

The allure of dividend stocks lies in their capacity to provide consistent cash flow, even during market downturns. A robust dividend can act as a buffer against volatility and contribute to long-term wealth accumulation. The companies selected by 24/7 Wall St. were chosen for their historical commitment to dividend payments and perceived stability, characteristics still valuable in today's market.

Verizon (VZ): Navigating the 5G Future

Verizon, the telecommunications giant, remains a cornerstone for income-focused investors. Back in 2023, analysts praised Verizon's significant investments in 5G infrastructure, anticipating continued revenue growth. While the initial 5G rollout faced some challenges and competition intensified, Verizon's sheer scale and ongoing upgrades to its network continue to generate substantial revenue. As of today, January 24th, 2026, Verizon boasts a dividend yield of approximately 6.58%, which remains attractive. However, concerns persist regarding rising debt levels to fund the infrastructure buildout and increasing competition from T-Mobile and AT&T. The relatively low price-to-earnings (P/E) ratio of around 8.5, noted in the original report, suggests the market may be pricing in these challenges.

Duke Energy (DUK): The Stability of Utilities

Utility companies like Duke Energy are frequently viewed as defensive investments, characterized by their consistent revenue streams and relative immunity to economic cycles. Duke's historical track record of consistent dividend payments and steady growth made it appealing to risk-averse investors. Duke's 4.43% dividend yield, as it stood in 2023, provides a dependable income stream. While regulated, the utility sector has faced increasing scrutiny regarding renewable energy transitions and infrastructure upgrades to address climate change. Duke's ability to adapt to these regulatory changes and maintain profitability will be crucial to sustaining dividend growth in the coming years. Recent reports indicate increased capital expenditure required to transition towards sustainable energy sources, which may put pressure on future dividend growth.

Altria Group (MO): High Yield, Significant Risks

Altria, the parent company of Marlboro, has consistently delivered a high dividend yield, reaching 8.75% in 2023. This appeal stems from its long history of profitability and its ability to generate substantial cash flow, despite the long-term decline in cigarette consumption. However, the challenges facing Altria remain significant. The decreasing popularity of traditional cigarettes and the increasing regulatory hurdles concerning nicotine products continue to impact revenue. Altria's ventures into alternative nicotine products, such as vaping and oral tobacco, have yielded mixed results and face intense competition. While a high yield can be tempting, investors must carefully consider the substantial risks associated with this sector. Legal challenges regarding the addictive nature of nicotine and potential taxation changes pose ongoing threats to Altria's future profitability and dividend sustainability. The initial assessment deemed it "a decent dividend stock," but that designation warrants careful reevaluation given the evolving regulatory environment.

Important Considerations for Today's Investor

While these three stocks presented an appealing income opportunity in 2023, the investment landscape has changed. Factors such as rising interest rates, inflation, and geopolitical instability continue to influence market dynamics. It's imperative to conduct thorough due diligence, analyzing not just the dividend yield, but also the company's financial health, competitive position, and long-term growth prospects. Diversification remains key to mitigating risk. Relying solely on any single stock, or even a small group of stocks, can expose investors to unnecessary volatility.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Consult with a qualified financial advisor before making any investment decisions.