2 Ultra-High-Yield Dividend Stocks You Can Buy With Confidence in March

Core Viewpoint - The article highlights two high-yield dividend stocks, Verizon Communications and PennantPark Floating Rate Capital, which offer attractive yields of 6.3% and 10.85% respectively, presenting potential investment opportunities for income-seeking investors [5][6][13]. Group 1: Dividend Stocks Performance - Historically, dividend stocks have outperformed non-payers, with income stocks achieving an annualized return of 9.17% compared to 4.27% for non-payers from 1973 to 2023 [4]. - Companies that regularly pay dividends tend to have stable operating models and a clear growth outlook, making them reliable investments [2]. Group 2: Verizon Communications - Verizon Communications offers a dividend yield of 6.3% and is focusing on increasing organic revenue growth through the expansion of its 5G network and broadband services [6][9]. - The company has improved its balance sheet, reducing total unsecured debt from $130.6 billion at the end of 2022 to$117.9 billion by the end of 2024, enhancing its financial flexibility [11][12]. - Despite being a mature company with low growth rates, Verizon's valuation is attractive, with a forward P/E ratio below 9, contrasting with the historically high S&P 500 P/E ratio [12]. Group 3: PennantPark Floating Rate Capital - PennantPark Floating Rate Capital has a high dividend yield of 10.85% and focuses on debt investments in middle-market companies, with a significant portion of its portfolio allocated to debt securities [13][14]. - The company's weighted average yield on debt investments is 10.6%, benefiting from variable interest rates amid a rising rate environment [14][15]. - PennantPark has maintained a low delinquency rate, with only 0.4% of its portfolio experiencing payment issues, indicating effective loan vetting [17].