3 Magnificent Ultra-High-Yield Dividend Stocks That Are Screaming Buys in February

Over long periods, Wall Street is nothing short of a wealth-building machine for patient investors. While there are countless strategies investors can employ to grow their nest egg in the stock market, buying and holding high-quality dividend stocks tends to be among the smartest ways to make money.

Last year, the Hartford Funds, in collaboration with Ned Davis Research, released a report that examined the power of dividend stocks over time. In particular, researchers examined the annualized performance of dividend stocks to nonpayers over the previous half-century (1973-2022). Whereas publicly traded companies that don’t offer a payout delivered a modest annualized return of 3.95%, the dividend payers more than doubled up the nonpayers with a 9.18% annualized return.

Hartford Funds’ findings on dividend stocks aren’t a surprise. Companies that can generate a recurring profit, consistently share a percentage of that profit with their shareholders, and offer transparent long-term growth guidance, should be expected to rise in value over time.

The challenge for income seekers is maximizing the yield they receive while avoiding danger. Since risk and yield do tend to correlate, high-yielding stocks can sometimes be more trouble than they’re worth. But this isn’t always the case.

What follows are three magnificent ultra-high-yield dividend stocks — sporting an average yield of 7.34% — that are screaming buys in February.

Altria Group: 9.48% yield

The first unrivaled dividend stock that makes for a genius buy in the shortest month of the year is domestic tobacco giant Altria Group (NYSE: MO). Altria has raised its payout 58 times over the past 54 years.

There’s no question that Altria’s growth heyday is in the rearview mirror. Consumers have become increasingly aware of the potential dangers of long-term tobacco use, which has led to a precipitous downturn in adult cigarette smoking rates dating back to the mid-1960s. Whereas roughly 42% of U.S….