3 of the Safest Ultra-High-Yield Dividend Stocks to Buy in 2025

Core Insights - The article emphasizes the attractiveness of ultra-high-yield dividend stocks, which currently average a yield of 8.53% [4] Group 1: Dividend Stocks Performance - Dividend stocks have historically outperformed non-dividend payers, with an average annual return of 9.17% compared to 4.27% over a 50-year period [3] - The consistent profitability and long-term growth potential of dividend-paying companies make them appealing for investors [2] Group 2: Pfizer (PFE) - Pfizer offers a yield of 6.72% and has shown resilience despite declining sales from COVID-19 therapies, with projected sales of $8.5 billion in 2024, down from over $56 billion in 2022 [4][5] - The company’s oncology and specialty care segments are performing well, indicating a strong product portfolio beyond COVID-19 therapies [6] - Pfizer's acquisition of Seagen in December 2023 enhances its oncology pipeline and is expected to yield cost savings [7] - The healthcare sector's defensive nature provides cash-flow predictability, making Pfizer a reliable investment [8] Group 3: Annaly Capital Management (NLY) - Annaly Capital Management boasts a yield of 13.14%, with a historical average yield of around 10% over the past two decades [9] - The company is positioned to benefit from a declining interest rate environment, which can improve its net interest margin [11] - Annaly primarily focuses on agency assets, providing an added layer of protection and allowing for sustained high yields [13] - The stock is trading close to its book value, making it an attractive option for income-seeking investors [14] Group 4: Realty Income (O) - Realty Income offers a yield of 5.72% and has consistently increased its dividend for over 27 years [15] - The company maintains a high occupancy rate of 98.7%, indicating strong demand for its commercial real estate properties [18] - Realty Income's diversified portfolio, including recent acquisitions, enhances the predictability and security of its funds from operations [19] - The stock is currently valued at a 25% discount to its average cash flow multiple over the past five years, indicating it is historically cheap [20]