3 High-Yield Dividend Stocks to Secure Your Financial Future


  • All three companies prioritize diversification strategies to fuel consistent revenue growth.
  • British American Tobacco (BTI): It diversifies top-line, minimizing risks with a multi-category strategy.
  • Philip Morris (PM): The tobacco giant expands globally, with solid market share milestones and innovative product offerings.
  • Verizon (VZ): This telecomm company delivers substantial broadband business growth with increased adjusted EBITDA and free cash flow.
High-Yield Dividend Stocks - 3 High-Yield Dividend Stocks to Secure Your Financial Future

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Investigating high-yield dividend stocks is a common step in building a financial portfolio that seeks stability and growth. Three firms offer a good chance to protect one’s financial future. The first one has several income streams that contribute to its robust performance. By strategically concentrating on several product categories, the business reduces the risks of dependence on a single market niche.

Another company that stands out demonstrates impressive worldwide growth and market share acquisition. Its focus on innovation and customer-centricity, coupled with its sharp financial management and delivery of returns, makes it a profitable investment choice.

Finally, the third one becomes a major force in the telecom industry, especially in broadband services. The telecom giant expanded its broadband customer base and fixed wireless access portfolio.

Now let’s explore each of this trio that can deliver high-yield dividends.

British American Tobacco (BTI)

British American Tobacco logo on a building
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The forward dividend yield for British American Tobacco (NYSE:BTI) is 9.6%. Its performance derives from its multi-category strategy which generates various income streams. This diversity reduces the risk of depending too much on any product or market niche. The organization’s 3.1% year-over-year (YOY) increase in organic revenue demonstrates the efficacy of this approach. In particular, income from the New Category increased by 21% YOY, demonstrating a substantial market for goods other than traditional combustibles.

Moreover, British American Tobacco’s concentration in emerging markets, such as Velo and Vuse, has resulted in notable increases in profitability. Their strategic investments and operational efficiency initiatives have proven beneficial by achieving new category profitability two years ahead of plan. The company’s amazing reversal in the new category contribution from a loss of £1.1 billion in 2020 to a minor profit position in 2023 indicates its capacity to adapt and thrive.

Lastly, British American Tobacco’s results in Africa and the Middle East (AME) and Asia Pacific, Middle East and Africa (APMEA) highlight the advantages of its multi-category strategy and worldwide reach.  

Philip Morris (PM)

Philip Morris factory offices in Lithuania. PM stock.
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Philip Morris (NYSE:PM) offers a 5.2% forward dividend yield with a 15-year dividend growth mark. With 47% of the market comprising low- and middle-income areas, PM is actively expanding its geographic reach. They have grown significantly in various regions, including the US, Japan and Europe.

Additionally, their flagship product of IQOS has maintained its position as the leading brand in 11 markets and the second-biggest nicotine brand in other markets. The IQOS HTU market share surpassed 10% in Europe for the first time. And in Japan, it climbed by more than 3 percentage points to exceed 29%. These figures indicate a significant increase in consumer acceptability and market penetration, underscoring the company’s growth potential.

Finally, the launch of PMI’s most avant-garde product to date, IQOS ILUMA, was well-received by customers and holds potency for market expansion. Amid expansion plans, Philip Morris announced a regular quarterly dividend of $1.30 per share, demonstrating its financial stability and dedication to shareholders.

Verizon (VZ)

Verizon Retail Location. Verizon delivers wireless, high-capacity fiber optics and 5G communications. VZ stock
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Verizon (NYSE:VZ) has a 6.6% forward dividend yield and a 19-year growth history. Its broadband subscribers grew significantly, with 389K net additions, of which 53K were Fios Internet net adds. 

Indeed, the company is prominent in the broadband industry, reflected in this expansion, which results from both Fios and fixed wireless access offers. Revenue from Fixed Wireless Access (FWA) amounted to $452 million, a significant rise of about $200 million over the previous year. Furthermore, Verizon reported 151K fixed wireless net additions in Q1 of 2024, its greatest quarterly record to date. This suggests that both enterprises and consumers have a high need for FWA.

Further, in Q1, Verizon reported a 1.4% rise in adjusted EBITDA, or around $12.1 billion. This expansion demonstrated the company’s operational effectiveness and profitability. Decreased upgrade volumes and increased revenue from cellular services fueled it. In Q1 of 2024, the business recorded $2.7 billion in free cash flow, a solid rise of more than 16% over Q1 of 2023. Overall, Verizon has financial flexibility for investments and deleveraging programs because of this substantial cash flow creation.

As of this writing, Yiannis Zourmpanos held long positions in BTI, PM and VZ. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/3-high-yield-dividend-stocks-to-secure-your-financial-future/.

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