2 Ultra-High-Yield Dividend Stocks Worth Buying in 2025
Thursday, Jan 2, 2025 6:23 am ET
Investing in dividend stocks can be a great way to generate passive income and build long-term wealth. However, not all dividend stocks are created equal, and finding the right ones can be a challenge. In this article, we will highlight two ultra-high-yield dividend stocks that are worth considering for your portfolio in 2025.
1. Altria Group (MO) - Tobacco giant adapts to changing times
Altria Group, the parent company of Philip Morris USA, is a well-known name in the tobacco industry. Despite the decline in smoking rates and increased regulation, Altria has managed to adapt and maintain its market dominance. The company's forward dividend yield of 7.8% is significantly higher than the S&P 500's average yield of 1.32%, making it an attractive option for income-seeking investors.
Altria's strong financial position, with a debt-to-equity ratio of 0.75, ensures its ability to maintain and grow its dividend. The company's diversified portfolio of investments across various industries and sectors reduces risk and promotes consistent cash flows. Additionally, Altria has a history of dividend growth, with a 10-year dividend growth rate of 7.5%.

Altria's undervalued stock, trading at just 9.87 times forward earnings, presents an opportunity for investors to buy a high-quality dividend stock at a bargain price. The company's commitment to innovation and adaptation to changing consumer habits, such as its expansion into alternative nicotine products, positions it well for long-term growth.
2. Verizon Communications (VZ) - Telecom leader positioned for recovery
Verizon Communications is one of the largest wireless carriers in the United States, serving millions of customers and operating a network that spans the nation. The company's forward dividend yield of 6.78% is significantly higher than the S&P 500's average yield, making it an attractive option for income-seeking investors.
Verizon's strong balance sheet, with a debt-to-equity ratio of 0.55, supports its dividend sustainability and growth potential. The company's diversified business model, with operations in both midstream and utility segments, provides a stable cash flow stream. Verizon's extensive pipeline network and strategic acquisitions, such as the acquisition of natural gas utilities, position it for long-term growth.
Verizon's undervalued stock, trading at just 8.44 times forward earnings, presents an opportunity for investors to buy a high-quality dividend stock at a bargain price. The company's commitment to network upgrades and expansion, combined with its strong cash flow and dividend growth prospects, positions it well for long-term success.
In conclusion, Altria Group and Verizon Communications are two ultra-high-yield dividend stocks that are worth considering for your portfolio in 2025. Both companies have strong financial positions, diversified business models, and histories of dividend growth. Their undervalued stocks present an opportunity for investors to buy high-quality dividend stocks at bargain prices. By investing in these two companies, you can generate passive income and build long-term wealth while enjoying the peace of mind that comes with owning stable, dividend-paying stocks.
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