Verizon Dropped From the Dow — Is That 6% Yield a Buy?
Verizon is getting kicked out of the Dow Jones Industrial Average, but its fat dividend yield may still make it worth a look.
Verizon is getting the boot from the Dow Jones Industrial Average, and the market wasted no time punishing the stock. Shares dropped 2.6% to $45.53 on Wednesday — underperforming both AT&T and the broader S&P 500 on the same day the news broke. That stings.
With Verizon gone, the Dow loses its last traditional telecom name. AT&T was already shown the door back in 2015 when Apple took its slot. Now the iconic index moves fully on without the old-school phone giants, marking a real generational shift in how Wall Street defines blue-chip America.
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Here's the contrarian case though: getting cut from the Dow doesn't change Verizon's fundamentals overnight. The company still throws off a dividend yield sitting around 6%, which is the kind of income play that income investors dream about in a choppy market. Price drops like this can actually be entry points if your thesis is yield, not index inclusion.
The index-fund selling pressure is real and likely not done — trackers benchmarked to the Dow will dump shares mechanically. That could keep the stock soft in the short term. But if you're a retail investor hunting cash flow over capital gains, Wednesday's selloff might be putting Verizon on sale rather than sending a deeper warning signal.
Bottom line: don't confuse an index reshuffle with a broken business. Watch where the dust settles before you write this one off. Continue reading at Yahoo.
