There is good news from communications stock Verizon (VZ), particularly for those who hold corporate notes that are coming due next year. Verizon has a plan to get those paid off. Unfortunately, it was not a plan that sat well with investors, and shares slipped fractionally in Monday afternoon’s trading as a result.
Basically, Verizon plans to sell some new debt to pay off its old debt. Specifically, Verizon is planning to sell “…investment-grade corporate bonds” in order to finance redemption on nearly $1 billion worth of notes that are coming due in 2026. The new notes are 10-year notes, with yields planning to beat Treasury note yields by between 1.2 and 1.25 percentage points.
Most of the payout from this round of debt will go to pay off the $985 million worth of notes that are currently outstanding, reports noted. But there may be a problem with this play, as reports note it will be coming out into a time frame in which around $30 billion worth of notes will be up for sale, making Verizon part of a crowded field.
Dead Zones No More
Meanwhile, Verizon is reportedly also ramping up its wireless service by making satellite texting more available to its users. If you are a Verizon customer with a Google (GOOGL) Pixel 9 or a Samsung (SSNLF) Galaxy S25 smartphone, you will be able to send text messages to any carrier when cell service is out of the picture.
The reports noted that the new feature may not be immediately available, as the rollout—which starts today—will take place over the next two weeks. By then, the reports note, it should be available for every customer with those phones. It will also undoubtedly serve as a welcome benefit for customers who find themselves traveling to remote locations and need a way to connect with the outside world. Like that guy from 127 Hours.
Is Verizon Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on VZ stock based on six Buys and 11 Holds assigned in the past three months, as indicated by the graphic below. After a 14.81% rally in its share price over the past year, the average VZ price target of $46.27 per share implies 5.42% upside potential.
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