Income-focused investors don’t have to sacrifice stability for returns. These three high-yield dividend stocks not only offer attractive payouts but are also backed by strong fundamentals, making them compelling buys for long-term portfolios. Dividend Stock #1: Verizon Communications (VZ) Dividend Yield: 6.36% More News from Barchart My first pick is Verizon Communications (VZ), which continues to show why it is one of the market's most consistent dividend payers. Verizon is a major U.S. telecommunicati ...

Altria Group, Inc. (NYSE:MO) is included among the 10 Highest Dividend-Paying Stocks to Buy in the S&P 500. Why Dividend Investors Keep an Eye on Altria Group’s (MO) Payouts Altria Group, Inc. (NYSE:MO) is an American company and one of the world’s leading producers and marketers of tobacco products, including cigarettes, as well as medical products designed to treat conditions related to tobacco use. The iconic company, best known for its Marlboro cigarettes, has long been a popular choice for dividend ...

The heavy dividend payer has already done well for investors so far in 2025.Investors are bulled up on hypergrowth technology stocks right now, especially anything related to artificial intelligence (AI). I would guess that many readers have large exposure to these AI stocks that have been massive winners in the last few years.There is nothing inherently wrong with allocating your portfolio to hypergrowth stocks. However, if you are an older or more conservative investor, now may be the perfect time to opti ...

Core Viewpoint - The article emphasizes the importance of high-yield dividend stocks as a means for investors to generate passive income and enhance total return potential, especially in light of an anticipated rate cut by the Federal Reserve [1][3]. Group 1: Investment Opportunities - With a positive outlook for a September rate cut, investors are encouraged to purchase quality high-yield dividend stocks before the Federal Reserve meeting on September 16-17, where a 25 basis point cut is expected [3]. - Five of the highest-yielding S&P 500 stocks are highlighted as offering dependable yields from quality blue-chip companies, making them suitable for long-term investment [4][5]. Group 2: Historical Performance of Dividend Stocks - Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%, underscoring the significance of sustainable dividend income [5]. - A study indicates that dividend stocks delivered an annualized return of 9.18% over the past 50 years, significantly outperforming non-dividend payers, which had an annualized return of 3.95% [5]. Group 3: Company Highlights - Alexandria Real Estate Equities Inc. (NYSE: ARE) is noted for its unique niche in the real estate sector, focusing on life sciences and technology campuses, and is trading at a reasonable valuation [6][8]. - Altria Group Inc. (NYSE: MO) is recognized for its compelling entry point and generous dividend yield, with a recent stock repurchase plan partially funded by the sale of shares in Anheuser-Busch InBev [9][10]. - Pfizer Inc. (NYSE: PFE) is highlighted for its dependable dividend, which has increased for 14 consecutive years, and is projected to have full-year 2025 revenues between $61.0 billion and $64.0 billion [13][14]. - United Parcel Service Inc. (NYSE: UPS) is adjusting its shipping volume for Amazon by over 50% to focus on more profitable segments, indicating a strategic shift in operations [15]. - Verizon Communications Inc. (NYSE: VZ) is noted for its strong valuation and growth, trading at 9.13 times its estimated 2026 earnings, with a significant increase in stock value in 2025 [21][22].

Core Viewpoint - The article discusses the resurgence of dividend stocks as interest rates decline in 2024, highlighting five reliable blue-chip dividend stocks that are worth considering for investment before this shift occurs [2][3]. Group 1: Dividend Stocks Overview - Dividend stocks are typically seen as slow-growth investments, often favored by income investors, especially when risk-free alternatives become less appealing due to rising interest rates [1]. - As interest rates are expected to decline, more investors are anticipated to return to high-yielding dividend stocks [2]. Group 2: Coca-Cola - Coca-Cola is the world's leading beverage maker, offering a diverse range of products that helps mitigate risks associated with declining soda consumption [5]. - The company operates a capital-light model, generating stable profits and increasing dividends for over 60 years, with a current forward yield of 3% and a valuation of 23 times forward earnings [6]. Group 3: Altria - Altria, the largest tobacco company in the U.S., is adapting to declining smoking rates by diversifying into non-smokable products and raising cigarette prices [7]. - The company has consistently raised its dividends since 2008, currently offering a forward yield of 6.4% and trading at 12 times forward earnings [8]. Group 4: IBM - IBM has shifted its focus from slow-growth segments to higher-growth areas like hybrid cloud and AI, leading to renewed growth [10]. - The company has raised its dividend for 30 consecutive years, with a forward yield of 2.8% and a valuation of 22 times forward earnings [11]. Group 5: Cisco - Cisco, the largest networking company, faced challenges but is now positioned to benefit from increased infrastructure spending as companies upgrade networks for AI applications [12][13]. - The company has raised its dividend for 13 consecutive years, currently offering a forward yield of 2.4% and trading at 17 times forward earnings [14]. Group 6: Realty Income - Realty Income is a REIT focused on retail properties, maintaining a high occupancy rate and paying out at least 90% of its taxable income as dividends [15][16]. - The stock offers a forward yield of 5.6%, has increased its payout 131 times since its IPO, and trades at 14 times projected adjusted funds from operations per share [17].

Core Insights - Altria Group, Inc. (NYSE: MO) has experienced a double-digit price increase year-to-date but still lags behind its peers in the market [1] Company Analysis - Altria's performance in the stock market has been under scrutiny, particularly in comparison to its competitors, despite a notable price increase [1] Industry Context - The article references a broader investment theme focusing on the green economy, indicating potential shifts in investment strategies within the industry [1]

Group 1 - Altria owns Philip Morris USA, the maker of Marlboro cigarettes, and John Middleton, the manufacturer of Black & Mild cigars [1] - The company's smoke-free portfolio includes U.S. Smokeless Tobacco Company, which produces Copenhagen and Skoal, as well as Helix Innovations, known for on! oral nicotine pouches [1]

Core Viewpoint - Constellation Brands and Altria are both considered stable blue chip stocks, but Altria has outperformed Constellation significantly over the past three years, raising questions about future investment potential [1][2]. Constellation Brands - Constellation Brands generates most of its revenue from its beer business, with popular brands like Modelo and Corona, and a smaller portion from wine and spirits [4]. - The company faces three major challenges: declining beer consumption among younger consumers, decreasing sales of lower-end wines, and increased costs due to tariffs on imported Mexican beers [5][6]. - Analysts expect Constellation's revenue to decline from $10.2 billion in 2024 to $9.9 billion in 2027, while its earnings per share (EPS) is projected to grow at a compound annual growth rate (CAGR) of 7% [8]. - Despite a low valuation at 14 times forward earnings and a forward yield of 2.5%, the lack of near-term catalysts makes it an unappealing investment [9]. Altria - Altria primarily generates revenue from its Marlboro cigarettes and has a strong domestic focus, which protects it from tariffs and foreign-exchange issues [10][11]. - The company has been countering declining smoking rates by raising cigarette prices, cutting costs, and expanding its smokeless product portfolio through investments and acquisitions [12]. - Following a setback with its investment in Juul, Altria acquired Njoy for $2.8 billion in 2023, which is expected to boost EPS starting in 2026 [13]. - Analysts predict Altria's revenue will dip slightly from $20.4 billion in 2024 to $20.2 billion in 2027, but its EPS is expected to grow at a steady CAGR of 5% from 2025 to 2027 [14][15]. - Altria's stock is considered cheap at 12 times forward earnings, with a substantial forward yield of nearly 7%, making it a more stable investment compared to Constellation [15]. Investment Recommendation - Altria is viewed as the better investment option due to its more stable business model, larger dividend, and lower valuation multiple compared to Constellation Brands [16].

Core Viewpoint - The resurgence of tobacco stocks, particularly Altria Group, has been notable in 2025, with shares up nearly 17% and approaching $60, a level not seen since 2017, as investors seek safe-haven stocks during uncertain times [1]. Company Overview - Altria Group, owner of the Marlboro brand, primarily operates in the U.S. market and has faced significant declines in cigarette usage, which is expected to continue, particularly among young adults [3][8]. - The company has invested in diversifying its product offerings, including cannabis, nicotine pouches, cigars, electronic vaping, and alcohol, but has experienced muted success and notable failures, such as the $12.8 billion investment in Juul, which was written down to zero [4][12]. Financial Performance - The majority of Altria's revenue, approximately 88%, still comes from smokables, with new initiatives in vaping and nicotine pouches contributing minimally to overall revenue [5]. - Cigarette volumes for Marlboro declined by 13.3% year-over-year, a significant acceleration compared to historical declines of under 5% annually, indicating a major shift in the industry [8][10]. Dividend and Profitability Risks - Altria's ability to maintain profits has relied on increasing cigarette prices and reducing overhead costs, but this strategy is not sustainable long-term as the majority of its $11.6 billion in annual operating earnings is derived from cigarettes [9][10]. - The company faces risks to its dividend growth, which could be halted or slashed if profits decline without being replaced by new nicotine consumption [9][10]. Debt and Financial Strategy - Altria has accumulated $26 billion in debt, primarily to fund stock repurchases, which has not yet led to a dividend cut but poses risks for the future as the cigarette business deteriorates [14]. - The company has reduced its shares outstanding by about 10% over the last five years, which can benefit dividend per share but is being achieved through increased leverage [13][14]. Investment Outlook - The combination of a highly leveraged balance sheet, significant volume declines, and lack of successful diversification presents a challenging outlook for Altria Group, suggesting that investors should be cautious about purchasing the stock even with its attractive dividend yield [15][16].

Core Viewpoint - High-yield dividend stocks are highlighted as a reliable source of income for investors, particularly in retirement, with a focus on companies that have a proven track record of consistent dividend payments [1][2]. Group 1: Company Summaries - **Realty Income**: Current yield is 5.6%, known for being one of the largest REITs globally, paying monthly dividends, and has raised dividends for 110 consecutive quarters, with a payout ratio of 75% of anticipated 2025 funds from operations [4][5]. - **Altria Group**: Current yield is 6.7%, recognized as a Dividend King with over 50 years of uninterrupted dividend increases, despite declining cigarette volumes, maintains a payout ratio around 80% of cash flow, and has a significant stake in Anheuser-Busch InBev [6][7][8]. - **British American Tobacco**: Current yield is 6.8%, operates globally with a focus on next-generation nicotine products, has a dividend payout ratio of 66% of cash flow, and has transitioned to a quarterly payment schedule [9][10]. - **Verizon Communications**: Current yield is 6.1%, a leader in the U.S. wireless market with 21 consecutive annual dividend increases, and a payout ratio of only 58% of 2025 earnings estimates [11][12]. - **Enbridge**: Current yield is 5.7%, operates extensive pipelines and utilities, has a strong dividend track record with 28 consecutive annual increases, and maintains a payout ratio of 60% to 70% of distributable cash flow [13][14].