2 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

In the quest for reliable income and long-term growth, investors often seek out dividend stocks with high yields and consistent payouts. Two companies that stand out in this regard are Altria Group, Inc. (MO) and AbbVie Inc. (ABBV), both offering ultra-high-yield dividends that can provide substantial returns over a decade. Let's delve into the details of these two stocks and explore their potential for long-term investment.

Altria Group, Inc. (MO) is a tobacco giant with a dominant market position in North America, thanks to its iconic Marlboro brand. With a 7.4% dividend yield and a history of consistent dividend growth, Altria is an attractive option for income-focused investors. The company's diversified product portfolio, which includes e-vapor and oral nicotine pouches, ensures a steady revenue stream and supports its ability to maintain and grow its dividend. Altria's commitment to returning capital to shareholders is evident in its 53 consecutive years of dividend increases.



AbbVie Inc. (ABBV) is a pharmaceutical company with a robust pipeline of innovative drugs, including blockbuster medications like Humira, Skyrizi, and Rinvoq. With a 3.75% dividend yield and a track record of consistent dividend increases, AbbVie offers a compelling combination of income and growth potential. The company's focus on research and development, coupled with strategic acquisitions like the recent purchase of Nimble Therapeutics, ensures a steady stream of new products to drive growth and support its dividend. AbbVie's strong balance sheet and financial health make it an attractive long-term investment.



When comparing the dividend payout ratios of these two stocks to their respective industries' averages, we find that both ABBV and MO have room for future dividend growth. ABBV's payout ratio of 60.197914 is lower than the healthcare industry average of 65.7, while MO's payout ratio of 9.277026 is lower than the tobacco industry average of 12.5. This suggests that both companies can sustain and potentially increase their dividend payouts over the next decade.



Over the past five and ten years, both ABBV and MO have demonstrated strong dividend growth compared to their respective industries' averages. ABBV's dividend growth rate of 10.2% over the past five years and 9.8% over the last decade outpaces the industry averages of 4.5% and 4.2%, respectively. Altria's dividend growth rate of 4.1% over the past five years and 4.2% over the last decade matches or slightly exceeds the industry averages of 3.8% and 4.2%, respectively.



In conclusion, Altria Group, Inc. (MO) and AbbVie Inc. (ABBV) are two ultra-high-yield dividend stocks that offer attractive long-term investment opportunities. Both companies have strong business models, market positions, and financial health, which contribute to the stability of their dividends. With lower-than-average payout ratios and impressive dividend growth rates, these stocks have the potential to provide substantial income and capital appreciation over the next decade. Income-focused investors seeking reliable, long-term growth should consider adding these two stocks to their portfolios.