3 Top Dividend Stocks Yielding Up To 7.3%

As interest rates rise and Treasury bonds become more attractive, income-focused investors are seeking high-yielding dividend stocks to maintain their returns. While many dividend stocks have yields around 3% to 4%, there are still several companies offering yields above 7%. Here are three top dividend stocks yielding up to 7.3% that investors should consider.



1. Altria (MO) - Yield: 8.0%
Altria, a tobacco giant with a 200-year history, has increased its dividend for 52 consecutive years. The company's stable and predictable business model, along with its strong cash flow generation, supports its high dividend yield. Altria's dividend payout ratio of 77% is manageable for a mature business like Altria, and the company historically aims for a payout ratio of 80%. Altria's dividend yield of 8.0% is more than double what investors can get from a Treasury note, making it an attractive option for income-focused investors.



2. Alico (ALCO) - Yield: 7.3%
Alico, a Florida-based citrus producer, has paid a dividend every year since 1974, with the exception of one year. The company has significantly increased its dividend payout over the past few years, with an 800% increase in just 3 years. Alico's strong earnings growth and cash flow generation support its high dividend yield. The company's dividend payout ratio of 29.7% is well within a sustainable range, and its forward earnings of $6.75 per share easily cover its dividend payout of $2.00 per share.



3. Franchise Group (FRG) - Yield: 9.1%
Franchise Group, a franchisor of various brands, has a high dividend yield of 9.1%. The company's dividend payout ratio of 62% is manageable, and its forward earnings of $4.03 per share easily cover its dividend payout of $2.50 per share. Franchise Group's diversified business model and strong cash flow generation support its high dividend yield. The company has consistently increased its dividend payout over the past few years, with a 150% increase since 2020.



In conclusion, Altria, Alico, and Franchise Group are three top dividend stocks yielding up to 7.3% that investors should consider. While high-yielding dividend stocks come with risks, these three companies have strong fundamentals, stable business models, and manageable dividend payout ratios. Income-focused investors seeking high yields should carefully evaluate these stocks and consider adding them to their portfolios.