Verizon Signs Over $1 Billion Dark Fiber Deal with Google
Verizon has signed a multi-billion-dollar dark fiber agreement with Alphabet-owned Google to supply infrastructure connecting data centers. The deal, disclosed during the company's second-quarter earnings call on July 24, is part of growing demand for AI-related infrastructure and positions Verizon’s underutilized business segment as a potential growth driver. CEO Dan Schulman highlighted that this partnership marks just the beginning, with more deals expected by year-end. While the $1 billion deal represents only about three percent of Q2 revenue, it could significantly boost long-term fiber contract pipelines for the company's slower-growing business unit. The telecom giant also reported strong free cash flow and raised its full-year guidance. Verizon’s stock currently offers a 6.3% dividend yield at around $46 per share. With improved financial metrics including rising EBITDA, subscriber growth, and management optimism about AI infrastructure opportunities, the company appears to be reshaping its trajectory for income-focused investors.
Topics: AI infrastructure dividend stocks telecom