Verizon's Outage Outraged Over 1 Million Customers. Why I Just Bought the Stock Anyway.

• Verizon's work outage past week wounded the company's nationalist representation and outgo it immoderate money.

• However, the company's semipermanent prospects and large dividend programme haven't changed.

• Verizon's banal is besides somewhat much charismatic arsenic a effect of the work disruption.

• 10 stocks we similar amended than Verizon Communications ›

Over 1 cardinal Verizon Communications (NYSE: VZ) customers mislaid cellphone work for respective hours connected Wednesday, Jan. 14, 2026. The outage didn't conscionable wounded the telecom giant's nationalist image; it's besides impacting Verizon financially. The institution announced past week that it's offering a $20 recognition to anyone who experienced problems.

With this benignant of atrocious news, you mightiness deliberation it's champion for investors to enactment distant from Verizon for a while. I disagree. Here's wherefore I conscionable bought the banal contempt Verizon's highly publicized outage.

The bottommost enactment is that Verizon's semipermanent maturation prospects haven't changed. All the reasons to see buying the banal earlier past week stay intact. Those reasons see the company's improving escaped currency travel and the apt maturation coming by the extremity of the decennary from the instauration of 6G wireless networks.

They besides see a perchance transformative deal. Verizon announced connected Jan. 15, 2026, that each regulatory approvals required to get Frontier Communications (NASDAQ: FYBR) had been completed. The transaction is expected to adjacent connected Jan. 20, 2026. Verizon's acquisition of Fronter is acceptable to grow the company's fibre entree to astir 30 cardinal homes and businesses.

Verizon CEO Dan Schulman won't change his plans to reshape the company's business, either. Schulman said successful Verizon's October 2025 quarterly update that helium intends to "aggressively transform" the company's culture, outgo structure, and fiscal profile.

For income investors, Verizon's dividend remains highly attractive. The telecom leader's guardant dividend output tops 7%. In the 4th fourth of 2025, Verizon accrued its dividend for the 19th consecutive year.

Granted, Verizon's costs from past week's outage could transcend the $20 cardinal oregon truthful the institution volition incur successful credits to affected customers. Some could take to power wireless carriers arsenic a effect of the incident. However, if past is immoderate guide, the interaction connected Verizon shouldn't beryllium long-lasting.

For example, connected Feb. 22, 2024, thousands of AT&T (NYSE: T) customers mislaid compartment service. Since then, AT&T's stock terms has risen by astir 40%. Any antagonistic effect connected the communications banal was lone temporary. I expect the aforesaid volition beryllium existent for Verizon with its caller work disruption.