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The Best High-Yield Dividend Stocks to Buy for 2025 and Beyond
KOCoca-Cola(KO) The Motley Fool·2025-04-13 19:15

Group 1: Market Overview - Investors are seeking solid dividend stocks as market volatility returns, with some stocks offering yields significantly higher than the S&P 500 average of 1.44%, although some companies are struggling competitively [1] - The ideal scenario is to find high-yield stocks from strong companies that deliver solid financial results and show potential for share price appreciation [2] Group 2: Coca-Cola - Coca-Cola has a strong track record, having increased its dividend for 63 consecutive years, with a recent quarterly payment increase of 5% to 0.51,makingitalowriskoptionforboostingportfolioyield[3][6]Thecompanyoperatesacapitallightbusinessmodel,generatingsignificantrevenuefromconcentratesyrup,maintainingprofitmarginsabove200.51, making it a low-risk option for boosting portfolio yield [3][6] - The company operates a capital-light business model, generating significant revenue from concentrate syrup, maintaining profit margins above 20% over the last five years [4] - Despite fluctuations in consumer spending, Coca-Cola's global unit case volume grew by 2% year-over-year in Q4 and is projected to grow by 1% in 2024, aided by effective marketing strategies [5] - The stock has appreciated by 20% over the past year, currently offering a forward dividend yield of 2.88%, with expected annualized earnings growth of 6%, leading to an anticipated average annual return of around 9% [6] Group 3: AT&T - AT&T, as a leading wireless service provider, has shown resilience during recessions, with shares climbing about 59% over the past year due to strong demand for wireless and internet services [7] - The company cut its dividend in 2022 to manage debt, currently maintaining a quarterly dividend of 0.2775, resulting in a forward yield of 4.2% while focusing on debt reduction and growth investments [8] - AT&T's debt has decreased from 177billionin2021to177 billion in 2021 to 123 billion in 2024, while it has paid out less than half of its free cash flow in dividends over the past year [9] - The company reported 1.7 million postpaid phone net additions and 1 million AT&T Fiber net additions last year, aiming to maintain competitive pressure through quality service [10] - With over 17billioninfreecashflowgeneratedon17 billion in free cash flow generated on 122 billion of revenue last year, the 4.2% forward yield and management's growth outlook position AT&T as a strong income investment for 2025 and beyond [11]