Core Insights - Dividend stocks provide reliable passive income and can be less volatile than growth-focused investments [1] - Companies with high dividend yields must demonstrate the ability to maintain and grow dividends [1][2] Verizon - Verizon offers a 6.96% dividend yield and has consistently grown its dividend since 2005 [3] - In the first nine months of the year, Verizon paid out approximately 65% of its earnings in dividends, with earnings falling by about 14.6 billion in free cash flow, indicating sufficient capacity to cover and potentially grow the dividend [4] - Verizon aims to increase its fiber-optic internet market share and has added 2.2 million subscribers through the acquisition of Frontier Communications [5] Pfizer - Pfizer has a 6.4% dividend yield and has steadily grown its dividend since 2010 [6][7] - Analysts project that Pfizer's free cash flow will adequately cover the dividend in the coming years, with management committed to maintaining and growing the dividend [8] - Pfizer is focusing on developing new drugs, particularly in oncology, and acquired Seagen for 10 billion in revenue for Pfizer by 2030 [9] Ford - Ford pays a 6.14% dividend, but its dividend history is more volatile due to the cyclical nature of the auto industry [10] - Management aims to return 40% to 50% of free cash flow to shareholders, with expected free cash flow of 9 billion in 2025 [11] - Ford's stock faced challenges in 2024 due to vehicle recalls and warranty costs, but management expects improvements in electric vehicle earnings by 2025 [12][13]
Investing $5,000 Just Once in These 3 Ultra-High-Yielding Stocks Could Earn You $320 in Passive Income Every Year