The 2 Best High-Yield Dividend Stocks In A Decade

With interest rates back to zero, high, reliable yields are hard to come by. Which makes these two high-yield dividend stocks stand out.

This crazy coronavirus market has created high-yield opportunities the likes of which have not been out there since the financial crisis. And you haven’t missed your chance to cash in on the best high-yield dividend stocks in a decade.

Sure, the market has bounced back already. The S&P 500 is now back to only 10% below the all-time high. But the index is skewed with a lopsided allocation in large technology companies, which are doing well. The vast majority of stocks on the index are still down 20% or 30% and more in some cases.

The lower prices have raised the yield in the dividend-paying stocks. In fact, you can find high yields all over the place. But beware: In most cases, those yields are high because the stock price fell because business is way down. Many of these companies will have to cut the dividend to free up cash. Many of these oh-so-juicy yields are a dividend trap. You can wind up with a lot less income and a plummeting price.

However, certain well-chosen companies are uniquely enabled to maintain the dividend through the crisis. Those yields are real. This market has created certain opportunities where you can not only get great stocks at bargain prices, but you can also collect a higher level of income than has existed in over a decade.

I found two such investments.

The 2 Best High-Yield Dividend Stocks in a Decade

Best High-Yield Dividend Stock #1: Altria (MO)

Yield: 8.60%

Altria Group (MO) is the largest U.S. domestic cigarette maker and one of the largest in the world. The company is the domestic part of the old Philip Morris that spun off the international division in the form of Philip Morris International (PM) in 2008. Altria now operates primarily in the United States.

In addition to cigarettes, Altria also sells e-cigarettes, marijuana, beer, wine, and smokeless products. Altria also owns a 10.2% stake in the world’s largest brewer, Anheuser-Busch InBev (BUD). It may seem like a diversified company but it really isn’t. About 85% of net revenues are generated from cigarettes and the overwhelming majority of that is from its flagship Marlboro brand, which commands a stratospheric 40% plus cigarette market share in the U.S.

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Now, if you want to know what other dividend stocks I like now – some of the high-yield variety, others more focused on dividend growth and safety – you can subscribe to my  more

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