2 High-Yield Dividend Stocks That Can Deliver a Lifetime of Passive Income

High-Yield Dividend Stocks Overview - Passive income is a powerful tool for building long-term wealth, and high-yield dividend stocks provide steady cash flow without active management [1] - Success in dividend investing depends on identifying companies with attractive yields and strong financials to maintain or grow payouts over time [1] - Two stocks with yields above 5% are highlighted as compelling options for income-focused investors [1] Verizon Communications (VZ) - Verizon offers a 6.07% dividend yield and has an 18-year streak of consecutive dividend increases, recently raising its quarterly payout to 67.75 cents per share [2] - The company controls approximately 40% of the U.S. postpaid phone market share, enabling industry-leading margins and returns on capital [2] - Verizon's stock has risen over 18% year-to-date, benefiting from investor rotation into high-yield stocks ahead of anticipated interest rate cuts [2] - The company focuses on wireless service-revenue growth, adjusted EBITDA expansion, and free-cash-flow generation to support its dividend [3] - Shares trade at 9.5 times forward earnings, offering a margin of safety in case of a market pullback [3] Pfizer (PFE) - Pfizer provides a 5.69% dividend yield and has a portfolio of over 350 marketed medicines and 113 clinical-trial candidates, with a global presence in more than 200 countries [4] - The stock has declined over 50% from its three-year peak due to declining COVID-19 franchise sales, creating a potential value opportunity [4] - Pfizer trades at 9.6 times projected 2026 earnings, indicating a low valuation [4] - The company has a 15-year streak of consecutive dividend increases but faces concerns over its 436% payout ratio [5] - Management has committed to maintaining a top-tier dividend and implemented a $4 billion cost-saving initiative to strengthen its balance sheet [5] - Pfizer's future growth depends on its clinical pipeline, particularly potential blockbuster cancer treatments, which could improve its financial outlook [5] - The company's economically insensitive nature, high yield, and promising pipeline make it an attractive option for long-term income and stability [6]