3 Defensive Dividend ETFs to Mitigate a Possible Market Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2026
0mins
Source: Barron's
Market Performance: The S&P 500 has experienced three consecutive years of double-digit returns, indicating a strong market performance during this period.
Investment Strategy: Dividend investors are encouraged to explore strategies that can provide more downside protection for their portfolios in light of potential market fluctuations.
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Analyst Views on VZ
Wall Street analysts forecast VZ stock price to fall
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 46.730
Low
43.00
Averages
46.42
High
51.00
Current: 46.730
Low
43.00
Averages
46.42
High
51.00
About VZ
Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, technology, information and streaming products and services to consumers, businesses and government entities. Its Consumer segment provides wireless and wireline communications services. It also provides fixed wireless access (FWA) broadband through its 5G or 4G Long-Term Evolution (LTE) networks portfolio. The Company's Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and advanced communication services, corporate networking solutions, security and managed network services, local and long-distance voice services and network access to deliver various Internet of Things (IoT) services and products. It provides these products and services to businesses, public sector customers and wireless and wireline carriers across the U.S. and a subset of these products and services to customers around the world.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Customer Loyalty Program: Verizon has launched an industry-first loyalty program that simplifies wireless plans and offers cash back, aiming to attract customers by eliminating complexity and hidden fees, thereby enhancing customer satisfaction and competitive positioning.
- New Plan Introduction: The Verizon Simplicity plan removes network tiers, allowing all customers to enjoy the same 5G service, while the Verizon One plan combines mobility and home services into a single bill, improving user experience.
- Incentive Measures: The new plan offers new and existing customers a 3% cash back in Verizon Dollars every month, along with weekly sweepstakes for prizes like dining vouchers and a chance to watch the World Cup, which not only boosts customer engagement but may also increase loyalty.
- Market Reaction: Despite Verizon's strategy to attract customers through flexible pricing and bundled services, the news has had a limited impact on Verizon's stock price, with rivals AT&T and T-Mobile also showing little movement.
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- Strong Economic Data: US May retail sales rose 0.9% month-over-month, exceeding expectations of 0.6%, indicating resilient consumer demand that could positively impact future spending and economic recovery.
- Housing Market Recovery: Pending home sales in May increased by 3.8% month-over-month, significantly surpassing the expected 0.9%, marking the largest gain in 20 months, suggesting a rebound in the real estate market that may stimulate growth in related sectors.
- Oil Price Volatility: The agreement between the US and Iran to reopen the Strait of Hormuz has driven crude oil prices down to a 3.5-month low, increasing risk-on sentiment in the market, which may lead investors to reassess the risks and returns of energy-related assets.
- FOMC Meeting Focus: The market anticipates that the Federal Reserve will keep interest rates unchanged, but the press conference by new Chair Kevin Warsh will be pivotal, as investors closely watch his outlook on inflation to guide future investment decisions.
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- Strong Market Performance: The S&P 500 index rose by 0.23%, the Dow Jones Industrial Average increased by 0.26%, and the Nasdaq 100 climbed by 0.74%, reflecting market confidence in economic recovery, particularly driven by strong performances from chipmakers.
- Retail Sales Exceed Expectations: U.S. May retail sales increased by 0.9% month-over-month, surpassing the expected 0.6%, indicating resilient consumer demand that could further stimulate economic growth and influence future monetary policy.
- Oil Price Decline Affects Market Sentiment: The agreement between the U.S. and Iran to reopen the Strait of Hormuz has led to crude oil prices dropping to a 3.5-month low, enhancing risk-on sentiment in the markets and contributing to stock gains.
- FOMC Meeting in Focus: Market participants are closely watching the outcome of the FOMC meeting, where interest rates are expected to remain unchanged, but the guidance from new Chair Kevin Warsh will significantly impact market sentiment.
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- Network Resilience Enhancement: Verizon has established a robust network ecosystem with built-in backup power and redundant fiber routes, ensuring critical connectivity during tropical storms, thereby enhancing support for residents and businesses.
- Technological Innovation: The company has implemented Digital Twin Technology, utilizing drone-captured 3D imagery to quickly assess damage post-storm, allowing for prioritized repairs and significantly improving emergency response efficiency.
- Satellite Network Expansion: Verizon's satellite assets have increased to 2,600, with the new Multi-Orbit Off-Road Trailer capable of switching satellites during extreme weather, ensuring 5G connectivity for first responders and enhancing disaster recovery capabilities.
- Community Support Initiative: Verizon is deploying new connectivity vans that provide Wi-Fi and charging stations during crises, aiming to support community recovery efforts in natural disasters, reflecting the company's commitment to public safety.
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- Business Sale Announcement: Yum! Brands revealed plans to sell its Pizza Hut business for a total of $2.7 billion, with operations outside Mainland China sold to LongRange Capital for approximately $1.5 billion, expecting about $2.3 billion in net proceeds after taxes, indicating a decisive strategic restructuring.
- Customer-Centric Strategy: Verizon launched an industry-first loyalty program featuring a simplified wireless plan, cash back, and weekly sweepstakes, with CEO Dan Schulman emphasizing a fundamental reshaping of Verizon to focus on customer experience, aiming to simplify services and enhance customer satisfaction.
- Investigation Closure Impact: Delta Air Lines concluded a Department of Transportation investigation into a July 2024 outage without penalties, despite affecting 1.3 million customers and costing $500 million, as the review indicated prompt refunds and adequate support for passengers, mitigating potential reputational damage.
- Layoff Announcement: Robinhood Markets announced a reduction of approximately 10% of its full-time employees to maintain a high-performance culture and accelerate product development, stating this decision is made from a position of business strength, with record average daily trading volumes in June across various markets, showcasing its competitive edge.
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- Customer Attraction Strategy: Verizon aims to enhance customer appeal by launching simplified plans that eliminate activation and upgrade fees while introducing a new loyalty program, particularly in the fiercely competitive U.S. telecom market.
- Loyalty Program Benefits: Starting in July, the new program will offer customers 3% back on bills, usable for new phones or at brands like Sephora and Hilton, which is expected to boost customer retention significantly.
- Market Competition Response: Verizon's 'Simplicity' plan will eliminate network tiers and combine mobility and home services into one bill, strategically positioning itself against AT&T and T-Mobile's bundled offers to increase market share.
- Stable Financial Outlook: Although the specific costs of the new plans were not disclosed, Verizon indicated that these changes are expected to positively impact revenue and will not alter its 2026 financial guidance, reflecting the company's confidence in future growth.
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