3 Defensive Dividend ETFs to Mitigate a Possible Market Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2026
0mins
Should l Buy VZ?
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 over the next 12 months. According to Wall Street analysts, the average 1-year price target for VZ is 46.42 USD with a low forecast of 43.00 USD and a high forecast of 51.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 48.970
Low
43.00
Averages
46.42
High
51.00
Current: 48.970
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.
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Technological Advancements: The Bluebird 6 satellite features a massive communications array, making it the largest commercial communications array ever deployed in Low Earth Orbit, capable of supporting high-speed data transmission.
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Successful Deployment of Bluebird 6: AST SpaceMobile has successfully deployed the Bluebird 6 satellite in Low Earth Orbit, marking a significant transition from a research firm to an operational entity in telecommunications.
Market Impact and Financial Commitments: The successful deployment has validated the company's technology and led to over $1 billion in contracted revenue commitments, enhancing its market potential to disrupt the global telecom sector.
Technological Advancements: The Bluebird 6 satellite features a massive communications array, making it the largest commercial communications array ever deployed in Low Earth Orbit, capable of supporting high-speed data transmission.
Future Growth Plans: AST SpaceMobile aims to launch 45 to 60 satellites by the end of 2026, with a focus on expanding its service coverage in key markets, including the United States, Europe, and Japan, to drive commercial growth.
See More
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- Dividend Yield Basics: The dividend yield is calculated by dividing the annual dividend by the current stock price; for instance, Scruffy's Chicken Shack pays $1 quarterly, resulting in a 5% yield at an $80 share price, highlighting the need for caution when selecting high-yield stocks as falling prices can inflate yields.
- Attractiveness of Verizon: Verizon Communications boasts a recent dividend yield of 6.01%, and despite its slow growth, its $200 billion market cap and strong customer base make it a solid blue-chip investment, indicating stable cash flow and market position.
- Stability of Chevron: With a dividend yield of 3.97%, Chevron is a well-regarded energy company with nearly 40 years of annual dividend increases and a healthy balance sheet, making it a low-risk investment option with a market cap of $367 billion.
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See More
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- T-Mobile Earnings Report: T-Mobile US reported weaker-than-expected earnings for the fourth quarter.
- Customer Sign-Ups: The company experienced fewer customer sign-ups than anticipated, contributing to the decline in stock value.
See More
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- Satellite Technology Breakthrough: AST SpaceMobile successfully unfolded its BlueBird 6 satellite, which is the largest commercial communications array ever deployed in low Earth orbit, spanning approximately 2,400 square feet, marking a significant advancement in space-based broadband technology.
- Data Transmission Capability: BlueBird 6 is capable of peak data speeds up to 120 Mbps, and its large antenna array allows for precise beamforming, maximizing network capacity and minimizing interference, thereby enhancing signal transmission from standard handheld devices.
- Future Launch Plans: The company plans to launch 45 to 60 satellites by the end of 2026, aiming to provide 4G and 5G space-based cellular broadband to nearly 6 billion mobile subscribers worldwide, further revolutionizing global connectivity.
- Intellectual Property Support: AST SpaceMobile boasts over 3,800 patent and patent-pending claims, and its vertically integrated manufacturing and technology platform underscores its strategy to lead in the space-based broadband market, bolstering investor confidence in the company's long-term prospects.
See More
Investors Shift Focus to Dividend Stocks in 2026
- Shift in Investment Strategy: In 2026, investors have shifted from chasing high-valued growth stocks to focusing on dividend stocks, reflecting a market preference for stable income, especially as the S&P 500 has risen by less than 2%.
- Strong ETF Performance: The iShares Select Dividend ETF has risen 10% year-to-date, with its top holding, Seagate Technology, benefiting from increased tech spending and seeing its stock price rise over 50%, significantly boosting the ETF's overall performance.
- Attractive Yield: The iShares Select Dividend ETF offers a yield of approximately 3.4%, more than three times the S&P 500 average of 1.1%, highlighting its appeal as an income investment, with a reasonable expense ratio of 0.38%.
- Outstanding Schwab ETF: The Schwab U.S. Dividend Equity ETF has surged 13% year-to-date, with major holdings Lockheed Martin and Texas Instruments each up over 25%, providing a 3.5% yield and a low expense ratio of just 0.06%, making it suitable for long-term investors.
See More
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- Earnings Performance Exceeds Expectations: UPS reported an adjusted earnings per share of $2.38 for Q4 2025, surpassing the $2.20 forecast, demonstrating that the company's strategy focused on high-value deliveries and margin improvement is effective, making it a relatively safe long-term investment despite global economic uncertainties.
- Verizon's Growth Potential: Verizon Communications boasts a dividend yield of 6%, with a 15% stock price increase this year, and its wireless subscriber growth has reached a six-year high, indicating that under new CEO leadership, the company is improving profitability, with projected EPS for 2026 at $4.90, exceeding market expectations.
- Safe Dividend Payments: With a payout ratio around 50%, Verizon's dividends appear very secure, and as the company shows signs of improving profitability and restoring investor confidence, it is regarded as a solid income stock to buy right now.
See More
