Core Insights - Extremely high yields can be dangerous, but companies yielding 6% to 8% are considered reliable and increase dividends annually [1][3] - The market determines a stock's dividend yield based on the dividend amount versus share price, not the company [1][2] - Stocks yielding 10% or more often have underlying business issues, leading to potential dividend cuts [2] Group 1: Company Profiles - Altria Group (MO): Known for selling Marlboro cigarettes, Altria has raised its dividend for over 50 consecutive years despite declining cigarette sales. The company offsets volume loss by increasing prices, resulting in a current yield of almost 8% with a payout ratio of 80% of earnings [4][5][6] - VICI Properties (VICI): This REIT owns 93 properties, including major casinos, and has collected 100% of its rent since 2017. It currently yields 6% with a payout ratio of 76% of guided 2024 funds from operations, allowing for continued dividend increases [7][8][9] - Verizon Communications (VZ): A leading player in the U.S. telecommunications market, Verizon has a yield of 7% and has increased its dividend for 20 consecutive years. The payout ratio is 59% of 2024 earnings, indicating a safe dividend despite low growth expectations of 2.5% annually [11][12][13]
Want Safe Dividend Income in 2025 and Beyond? Invest in the Following 3 Ultra-High-Yield Stocks.