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Want Safe Dividend Income in 2025 and Beyond? These 2 Ultra-High-Yield Stocks Deliver

Want Safe Dividend Income in 2025 and Beyond? These 2 Ultra-High-Yield Stocks Deliver

Author:
foolstock
Published:
2025-09-02 20:45:00
17
1

Dividend hunters are circling—and these two cash-generating machines just hit the radar.

Forget bond yields that barely beat inflation. We're talking serious income plays that actually justify the risk. The kind that makes traditional savings accounts look like financial artifacts.

Ultra-High-Yield Strategy: Not Your Grandpa's Portfolio

These aren't sleepy blue-chips. We're targeting robust businesses throwing off serious cash—companies built to pay, built to last, and built to outperform in shaky markets.

Why 2025 Looks Ripe for Dividend Dominance

With rate cycles turning and economic signals flashing, income investors are shifting strategy. Dividend stocks aren’t just safe havens—they’re tactical weapons.

Timing the Market vs. Timing Your Income

Let's be real—nobody times the market perfectly. But locking in high yields? That’s a move you can make right now. No crystal ball required.

Because sometimes the safest move is getting paid to wait—while everyone else chases hype.

A jar full of coins, a stack of cash, and a clothespin with a paper that says Dividends on it.

Image source: Getty Images.

Altria's steady cash flow

Altria is a tobacco giant that focuses on the United States market. It sells Marlboro cigarettes, discount cigarette brands, cigars, and increasingly new-age products such as electronic vapor and nicotine pouches. With a quarterly dividend of $1.06, the stock recently had an annualized dividend yield of 6.3%, which is significantly higher than the market average.

Investors have discounted the future for tobacco companies because of reduced usage among the wider population. However, the business is still solidly profitable due to price increases on packs of cigarettes.

Over the last 12 months, Altria's free cash FLOW was $8.7 billion, which was close to an all-time high. Through the first half of this year its adjusted earnings per share (EPS) has grown by 7.2% even though cigarette volumes declined by 12%. Price increases are a consistent method to counteract inflation and have helped the cigarette brands grow earnings for the last 50 years, even though usage has declined.

What's more, Altria Group is seeing promise from some of its newer-age products such as On! nicotine pouches, which grew volumes 26.5% year over year last quarter. The company is also optimizing its balance sheet by repurchasing shares of its stock. Shares outstanding are down around 10% in the last five years, which makes it easier for the company to grow its dividend-per-share payout even if remains a slow-growth business. This is why free cash Flow per share has grown by 17% in the last five years. As free cash flow per share grows, so does the company's capacity to grow its dividend per share.

At a dividend yield of 6.3%, Altria Group is a steady income stock investors can rely on for years to come.

Verizon's infrastructure advantage

Another mainstay in the United States is Verizon Communications, one of the largest wireless phone plan providers and telecommunications companies in the nation. Verizon is not a rapidly growing business, but through its immense infrastructure spending over the decades it has built up a competitive edge that makes it very hard for competitors to break through.

This year alone, it is expecting to spend $18 billion on capital expenditures but is still guiding for around $20 billion in 2025 free cash flow. The company is doing well with smartphone plans, putting up steady figures in this sector, but is growing quickly in home internet with its fixed wireless product that bypasses traditional wired or Wi-Fi systems for home internet. Fixed wireless subscribers surpassed 5 million last quarter, which helped total revenue grow 5% year over year.

At its current quarterly payout, Verizon has a dividend yield of 6.1%. Again, this is underrating the durability of Verizon's business and infrastructure advantage when providing mobile and internet services in the United States. Few companies have the scale to compete in this field, and even innovations such as SpaceX's Starlink remain niche players. For steady dividend income, buy Verizon Communications stock and hold it for the long term.

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