2 Ultra-High-Yield Dividend Stocks to Buy in 2024

Buying cash-generating businesses when their dividend yields are high and their stock prices are low is a time-tested strategy for amassing wealth in the stock market. If you’re interested in implementing this approach in your own portfolio, here are two stocks to consider investing in today.

1. Verizon Communications

Verizon (NYSE: VZ) is a popular stock among income-seeking investors. It’s easy to see why. The telecom giant’s shares are currently offering an enticing 6.5% yield on your investment dollars.

As people spend more time online, 5G wireless and broadband internet services are quickly becoming necessities. Verizon, which has garnered a reputation for fast and reliable service among businesses and consumers alike, is a leader in these increasingly indispensable areas.

Verizon’s broadband business is particularly robust. The company gained 413,000 broadband customers in the fourth quarter, driven by strong demand for its fixed wireless offerings. That brought its total broadband subscriber count to 10.7 million.

Verizon’s fast-growing broadband business and loyal wireless customers helped it generate free cash flow of $18.7 billion in 2023, up from $14.1 billion in 2022. That’s plenty of cash to cover Verizon’s roughly $11 billion in annual dividend payments while leaving enough left over for further debt reduction. Verizon cut its unsecured debt load by more than $2 billion in 2023 to $128.5 billion as of Dec. 31, 2023.

Impressively, Verizon has raised its cash payout to shareholders for 17 straight years. Better still, this dependable income stream can be had for a bargain price. The dividend stalwart’s shares currently trade for only about 9 times its trailing free cash flow.

2. Altria Group

Yield-hungry investors may also want to take a look at Altria Group (NYSE: MO). The tobacco titan has grown its cash payout consistently for more than five decades. Its surprisingly high yield stands at about 9.7% today.

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