Buy 2 Ultra-High-Yield Dividend Stocks Hand Over Fist

A steady trickle of cash payments into your investment account quarter after quarter and year after year is quite rewarding. Two companies that pay high and predictable dividends are ideal for passive income investors.

Verizon Dividend-paying stocks thrive in telecom. Investors seeking portfolio income are eyeing Verizon Communications (NYSE: VZ). The reasons are clear: Wireless leader stock yields 6.7% and has a good risk-reward profile.

Verizon serves over 100 million 5G cellular and broadband internet users. Telecoms pay generous dividends to investors because committed customers generate reliable cash flow. Its free cash flow rose 33% to $18.7 billion in 2023 as capital expenditures fell.

After finishing its 5G network, decreased capital outlays should support strong free cash flow in the coming years. Verizon should be able to pay its $11 billion annual dividends. Thus, investors may expect the corporation to continue its 17-year cash payment rise record.

Verizon's extra cash flow might be used to reduce debt, strengthening its balance sheet and reducing shareholder risk. This deleveraging might escalate if the Fed cuts rates later this year as expected. Verizon cut net unsecured debt by $1.6 billion to $126.4 billion in 2023. Lower borrowing rates may let it pay off more debt in 2024 and beyond.

Verizon also offers a low-priced stock, which is rare in the current market. Its shares cost less than 9 times the 2024 adjusted profit prediction. The broad-market S&P 500 index (SNPINDEX: ^GSPC) trades at 21 times estimated 12-month earnings.

Altria If you want extra dividend income from your diversified portfolio, try Altria Group (NYSE: MO). Today, the tobacco giant pays 8.9% and has raised dividends for almost 50 years.

U.S. smoking rates are projected to continue falling. However, Altria has made huge profits from cigarette sales by boosting pricing. Altria should profit from traditional cigarette sales for the next decade. However, expanding its product line is crucial to its future.

Sales of Altria's tobacco-free oral nicotine pouches rose 38.5% in 2023. Altria aggressively acquired vaping device company NJOY Holdings for $2.8 billion in June to boost its smoke-free products. The company expects smoke-free sales to reach $5 billion by 2028, up from $2.7 billion last year

Altria may have a bigger cannabis growth possibility in the future. About 40% of Cronos Group's shares are its. Altria's position in that Canadian cannabis producer and its huge tobacco distribution network could give it considerable advantages in a market that could reach $100 billion in annual sales if the U.S. legalizes marijuana

Altria shares are still available. This dividend stock trades for less than 9 times its 2024 profit prediction. Buy soon and you'll likely buy with the firm. Altria announced plans to sell a portion of its Anheuser-Busch InBev interest to expand its share-repurchase program by $2.4 billion.

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