Top 5 Undervalued Dividend Stocks to Buy Now

2. Verizon Communications Inc. (NYSE:VZ)

Forward P/E Ratio: 9.52

Dividend Yield as of May 17: 6.06% 

Verizon Communications Inc. (NYSE:VZ) engages in the provision of communications, technology, information, and streaming products and services to consumers, businesses, and governmental entities worldwide.

It was reported on May 14 that the Federal Communications Commission has approved Verizon’s spectrum purchase from Array Digital Infrastructure. The $1 billion deal is meant to expand the company’s network capacity and coverage and includes Array’s AWS-3, AWS-1, and PCS licenses covering nearly 8% of the US population.

According to the FCC, the acquisition will enhance ​Verizon Wireless’ “network coverage, capacity and performance, resulting in a stronger ability to meet ​increasing customer demand and provide a better customer experience.”

The announcement comes a few days after Verizon Communications Inc. (NYSE:VZ) reported better-than-expected profits for its Q1. Moreover, the company delivered 55,000 postpaid phone net adds in the quarter, underscoring its successful efforts to lure in new wireless customers despite the intense competition.

Given the strong performance, Verizon Communications Inc. (NYSE:VZ) expects total postpaid phone net adds to be at the upper end of its forecast of 750,000 to 1 million for FY 2026. Moreover, the company raised its guidance for adjusted EPS growth to 5% to 6%, compared to its prior range of 4% to 5%.