Yahoo Financeยท2025-10-06 23:30Core Viewpoint - Income-focused investors can achieve attractive returns without sacrificing stability by investing in high-yield dividend stocks backed by strong fundamentals [1] Group 1: Verizon Communications (VZ) - Verizon Communications offers a high dividend yield of 6.36% and has a payout ratio of 56.7%, indicating potential for dividend growth [2][3] - The company has a 21-year history of paying and increasing dividends, nearing the "Dividend Aristocrat" status, which requires 25 consecutive years of dividend increases [3] - Verizon's revised projections for 2025 include adjusted EPS growth of up to 3% and free cash flow between $19.5 billion and $20.5 billion, sufficient to cover dividend payments [4] - The broadband and fixed wireless access division is expanding rapidly, with over five million subscribers and a target of 8 million to 9 million by 2028, positioning Verizon for long-term growth [4] - Wall Street rates VZ stock as a "Moderate Buy," with an average target price of $48.23, indicating an upside potential of 11.1%, and a high estimate of $58 suggesting a potential increase of 33.6% in the next 12 months [5] Group 2: Altria Group (MO) - Altria Group has a dividend yield of 6.4% and is one of the largest tobacco and nicotine product companies in the U.S., primarily selling smokable products like Marlboro cigarettes [6]