Adding to an already impressive run in recent months, shares of telecommunications company Verizon (VZ 1.17%) jumped on Tuesday, following the company's strong fourth-quarter report. That brought the stock's total return since mid-October of last year to more than 35%.

Does the stock's big run make it overvalued, or is there still a chance for investors to buy shares and potentially benefit from even more upside? Surprisingly, the stock still appears pretty attractive at this level.

Strong fourth-quarter results

Verizon earned $1.08 on an adjusted basis during the quarter, down from $1.19 in the year-ago period. Though this non-GAAP (adjusted) earnings per share figure aligned with analysts' estimates, revenue of $35.1 billion for the period was well beyond an average forecast of approximately $34.6 billion.

More important than the company's reported financials for the period was management's update on its momentum with customers. Postpaid phone gross adds during the quarter soared 17% year over year, marking the company's best performance for this key metric in four years. Looking ahead, Verizon expects "to deliver positive consumer postpaid phone net adds in full-year 2024 as we execute on our strategy of growing our subscriber base while being financially disciplined," said Verizon Chief Financial Officer Tony Skiadas during the company's fourth-quarter earnings call.

This momentum has management guiding for total wireless service revenue growth of 2% to 3.5% in 2024. While this might seem like an unimpressive growth rate, investors should remember that Verizon stock trades at a very low valuation of 9 times adjusted 2024 earnings estimates. It simply won't take much for Verizon to live up to its valuation.

An exceptional dividend stock

You can't talk about Verizon without mentioning its outstanding dividend yield. Its current dividend gives the stock a yield of 6.7%. This compares to an average dividend yield of 1.5% for stocks in the S&P 500.

What's more, Verizon's dividend is steadily growing. In September of last year, the company announced a 2% increase to its quarterly dividend, adding to its long history of dividend growth. Verizon has now boosted its dividend every year for 17 years straight.

Investors shouldn't underestimate the value of such a robust dividend. The cash payout helps de-risk some of the volatility associated with the stock since investors can expect substantial cash payments every quarter. Not only do these large payments help mitigate stock price volatility compared to many other stocks, but they also mean shareholders get to collect highly predictable cash payments while holding the stock.

Of course, one of the biggest risks is that the dividend gets cut or even suspended. However, this is unlikely because one of the company's top capital allocation priorities is to continue raising its dividend yearly. Additionally, Verizon's peak capital expenditures associated with rolling out its C-band network are now in the rearview mirror. This leaves more of the company's capital expenditures to pay down debt and pay dividends. For instance, capital expenditures in the fourth quarter were $4.6 billion, down from $7.3 billion in the year-ago quarter.

Overall, Verizon still looks like a good stock to buy -- especially for investors looking for income.