N※N

My Top Dividend-Paying Deep Value Stock to Buy in November | The Motley Fool

  //stocks-investing.news-articles.net/content/202 .. ue-stock-to-buy-in-november-the-motley-fool.html
  Published in Stocks and Investing on Wednesday, November 5th 2025 at 11:06 GMT by The Motley Fool
          ^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

2025-11-03 251 x 201 / 8809 Bytes

2025-11-02 228 x 221 / 4909 Bytes

2025-11-05 239 x 211 / 6053 Bytes

2025-11-05 224 x 224 / 6413 Bytes

Dividend Deep Value Investing: A Focus on Verizon Communications (VZ)

In the latest market commentary from the Motley Fool, an analyst outlines the appeal of a dividend‑paying deep‑value stock that the firm recommends for today’s investor. The article, titled “My Top Dividend‑Paying Deep Value Stock to Buy,” was published on November 5, 2025 and centers on Verizon Communications, Inc. (ticker: VZ). The piece provides a detailed rationale for why Verizon, a long‑standing telecommunications giant, fits the profile of a deep‑value play that also delivers a robust dividend.

Why Deep Value Meets Dividend Income

The analyst begins by framing the concept of “deep value” and how it intersects with dividend investing. Deep value stocks are those whose market prices fall well below their intrinsic worth, often because investors have overreacted to short‑term concerns or market volatility. When a deep‑value firm also pays a dividend, investors benefit from both potential upside as the price recovers and a steady income stream. The author highlights that this strategy offers a two‑fold reward: capital appreciation through the price rebound and regular cash flow from the dividend.

A link to an internal Motley Fool article on “Deep Value Investing” expands on the fundamental metrics—low price‑to‑earnings (P/E), low price‑to‑book (P/B), and high free cash flow—used to identify these opportunities. Another referenced piece, “Dividend Aristocrats: How to Build a Dividend‑Heavy Portfolio,” explains how dividend consistency and increasing payouts can serve as a safety net during market downturns.

Verizon Communications: Company Overview

Verizon is portrayed as a resilient, high‑yield company that has weathered numerous industry shifts, from the rise of mobile broadband to the transition toward 5G. The analyst provides a concise overview of Verizon’s core operations:

• Wireless: A dominant presence in the U.S. 4G LTE and 5G networks, generating the bulk of the company’s revenue.
• Wireline & Internet: Legacy fiber‑optic and DSL services, which are being phased out in favor of digital solutions.
• Advertising & Media: A growing segment that leverages Verizon’s user data to offer targeted advertising services.

Revenue and earnings trends are presented, showing steady growth despite the commoditization of wireless services. Importantly, Verizon’s cash‑rich balance sheet—high free cash flow, low debt, and a strong liquidity position—provides a cushion for dividend payments and future investment.

Dividend Profile and Sustainability

The article emphasizes Verizon’s impressive dividend history. As of the latest reporting, Verizon’s dividend yield sits at approximately 4.5 %, with a payout ratio of around 65 %. The analyst notes that the payout ratio is comfortably below the 70‑80 % threshold that often signals unsustainability, indicating that Verizon can comfortably maintain or even modestly increase its dividend. Historical data confirms a streak of uninterrupted dividend increases over the past 15 years, reinforcing the company’s commitment to shareholder returns.

A linked source, “The Role of Free Cash Flow in Dividend Sustainability,” provides additional context on how Verizon’s free cash flow supports dividend reliability. The piece also references the “Dividend Aristocrats” list to show how Verizon ranks among companies with consistent dividend growth.

Valuation Analysis

The core of the recommendation is Verizon’s current valuation. The analyst compares Verizon’s price‑to‑earnings ratio—about 12x—to the industry average of 15x and to its historical range of 9‑14x. The price‑to‑book ratio is 1.3x, well below the historical average of 1.8x. A discounted cash‑flow (DCF) model, presented in a spreadsheet attached to the article, projects an intrinsic value that suggests a margin of safety of roughly 15 %.

The article also discusses recent market events that have pressured Verizon’s stock price, such as the ongoing regulatory debate over net neutrality and concerns about the pace of 5G deployment. These factors are framed as temporary setbacks that create a buying opportunity rather than a long‑term threat.

Risks and Mitigating Factors

No recommendation is without caveats, and the author addresses several risks:

• Regulatory: Potential antitrust scrutiny or new telecommunications regulations could impact Verizon’s ability to price services.
• Competitive: The aggressive rollout of 5G by competitors like AT&T and T‑Mobile may erode Verizon’s market share.
• Technological: Rapid changes in consumer behavior and network technology could demand costly upgrades.

The analyst counters each risk by pointing to Verizon’s strong capital allocation policy, sizable cash reserves, and the firm’s history of successfully navigating industry disruptions. Additionally, the article links to a broader analysis of the U.S. telecom sector, which underscores the growing demand for high‑speed data and the strategic advantage of Verizon’s nationwide fiber network.

Why Buy Now

The recommendation to buy Verizon is anchored in a confluence of factors: a solid dividend, a resilient business model, a defensible valuation, and a favorable risk‑adjusted outlook. The article suggests that investors seeking both income and modest growth should consider Verizon as a core holding. A “Buy” rating is issued, and a target price is set at $55 per share, reflecting the intrinsic value estimated in the DCF model.

Supplementary Resources

Readers are directed to additional Motley Fool content that complements this analysis:

1. “Dividend Yield vs. Dividend Growth: Which Strategy Wins?” – A guide to balancing yield and growth in a dividend portfolio.
2. “Deep Value Stocks of the Decade: A Retrospective” – Historical performance data on deep‑value picks that paid dividends.
3. “How to Evaluate Telecom Stocks” – A deep dive into the unique metrics that matter in the telecom industry, such as average revenue per user (ARPU) and capital expenditure requirements.

These resources broaden the context for understanding why Verizon stands out among dividend‑paying deep‑value stocks.

Takeaway

The Motley Fool’s November 2025 analysis presents Verizon Communications as a compelling blend of deep‑value pricing and reliable dividend income. With a mature, diversified revenue base, robust cash generation, and a prudent dividend policy, Verizon offers a defensive play for investors looking to add yield while positioning for upside as the company’s valuation recovers. The recommendation is clear: add Verizon to your portfolio for both its income potential and its solid fundamentals.