A high-yield dividend stock just became a major player in one of America’s well-known investment portfolios. Miller Value Partners added Verizon Communications to its holdings during the first quarter of 2025. This move shows confidence in the telecom leader’s income-generating potential.
The fund, now led by Bill Miller IV, bought 198,000 shares of Verizon. This investment was worth $8.98 million at the end of March. Verizon instantly became the eighth-largest position in the portfolio. It now makes up 4.09% of the firm’s total holdings.
Miller Value Partners has long focused on undervalued companies with solid fundamentals. Previously, the fund held a much larger position in AT&T. However, it reduced that stake by 78% this year. AT&T now ranks among the fund’s smallest holdings. This suggests a shift in telecom strategy.
Verizon, the high-yield dividend stock now in favor, offers a dividend yield of 6.3%. That yield makes it attractive to income-focused investors. Its consistent payouts appeal to long-term holders seeking steady returns. The company also has a strong customer base and reliable revenue streams.
However, Verizon’s debt load remains a concern. As of Q1 2025, it reported $115.1 billion in net unsecured debt. While this figure is large, it represents a $11 billion decrease from Q1 2024. The debt-to-EBITDA ratio also improved over the same period.
CFO Anthony Skiadis addressed the debt issue during the Q1 earnings call. He stated the company has “a clear pathway for meaningful debt reduction” before closing the Frontier transaction. Investors welcomed this update, viewing it as a sign of better financial discipline.
Many analysts believe Verizon’s positives now outweigh its risks. The high-yield dividend stock continues to attract attention despite market volatility. With strong cash flow, improving debt metrics, and a high payout, Verizon stands out in the telecom space.
This move by Miller Value Partners signals confidence in Verizon’s future. For investors chasing reliable income, this high-yield dividend stock could remain a top pick through 2025 and beyond.
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