NEW YORK – Verizon Communications Inc. (NYSE, Nasdaq: VZ), a prominent telecommunications company with a market capitalization of $180 billion and annual revenue exceeding $135 billion, has unveiled a significant $5 billion investment plan to support American small business suppliers over the next five years. The initiative, known as the Small Business Supplier Accelerator, is designed to integrate more small businesses, including those owned by veterans, into Verizon’s supply chain and that of other large corporations. According to InvestingPro analysis, Verizon maintains a GOOD financial health score, positioning it well for such strategic investments.
The investment aims to bolster the U.S. economy by creating a more resilient supply chain and providing small businesses with the necessary tools and training to thrive. The program will offer targeted training, flexible solutions like faster payment terms, and modified insurance and indemnification requirements to simplify the process for small businesses to become suppliers for Verizon. This initiative comes as Verizon trades at an attractive P/E ratio of 10.14, suggesting efficient capital allocation capabilities.
In addition to the accelerator program, Verizon’s Small Business Digital Ready program is launching a new grant cycle, offering $10,000 grants to eligible small businesses that apply by June 30, 2025. This initiative is part of Verizon’s ongoing effort to keep small businesses digitally ready, providing them with access to over 50 expert on-demand courses, one-on-one coaching, networking opportunities, and capital. Since its inception in 2021, Verizon has awarded $13.5 million in grants and supported nearly 500,000 small businesses, progressing toward its goal of equipping one million small businesses for the digital economy by 2030.
Verizon’s CEO, Hans Vestberg, highlighted the company’s long-standing commitment to empowering local businesses and communities with the necessary financial, technology, and business expertise to stimulate economic growth and job creation.
This announcement is based on a press release statement from Verizon Communications Inc., which continues to emphasize its dedication to driving digital readiness and economic growth among small businesses across the country. The company’s strong financial position is further evidenced by its impressive 6.3% dividend yield and 42-year track record of consistent dividend payments. For deeper insights into Verizon’s financial metrics and growth potential, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
In other recent news, Verizon Communications reported its first-quarter 2025 earnings, revealing an adjusted earnings per share (EPS) of $1.19, which exceeded analyst expectations of $1.15. The company also reported a revenue of $33.5 billion, slightly surpassing the forecast of $33.37 billion. Despite these positive financial results, Verizon experienced a loss of 356,000 consumer postpaid phone net additions, a figure that fell short of projections. KeyBanc Capital Markets maintained a Sector Weight rating on Verizon, noting both positive developments in prepaid services and challenges like potential increased churn due to expected tariffs. Bernstein analysts also maintained their Market Perform rating with a price target of $46, citing the competitive pressures Verizon faces in the telecom sector. The company remains optimistic about achieving its full-year service revenue growth forecast of 2% to 2.8%, buoyed by strategic offers that have shown traction in recent months. Verizon’s adjusted EBITDA reached a record $12.6 billion, marking a 4% increase year-over-year, yet analysts expressed concerns about the impact of competitive pressures and equipment subsidies on future growth. Despite these challenges, Verizon continues to focus on expanding its wireless service revenue and improving consumer postpaid phone net additions.
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