Want Safe Dividend Income in 2026 and Beyond? Invest in the Following 2 Ultra-High-Yield Stocks

Source The Motley Fool

Key Points

  • A falling stock price can erase capital gains, but not dividend income.

  • Altria is an old timer, but a living legend in the dividend stock universe.

  • Verizon's firm hold on U.S. smartphone users keeps the dividends rolling in.

  • 10 stocks we like better than Altria Group ›

When the stock market begins to rumble, investors can take comfort in high-quality dividend stocks. Capital gains can come and go as stocks fluctuate, but dividends are yours once paid out.

The trick, especially when looking at dividend stocks with abnormally high yields, is to find the ones you can depend on. That's not always easy to do. High dividend yields often result from the market sniffing out business or financial risk in the company, which can ultimately lead to poor returns or dividend cuts.

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These two companies have dominant, entrenched businesses that enable them to pay generous, reliable dividends to shareholders. Here is an introduction to each, and why investors can count on their ultra-high dividend yields for 2026 and beyond.

Cigarette pack with cigarette sticking out.

Image source: Getty Images.

1. A Dividend King with a 6.3% dividend yield

Altria Group (NYSE: MO) is the leading tobacco company in the United States. Most famous for selling Marlboro cigarettes, Altria also owns leading brands of oral tobacco and cigars, as well as a stake in global beer giant Anheuser-Busch InBev. Altria continuously raises cigarette prices to offset declining volumes. It's worked so well that the company is a Dividend King, a label earned with 56 consecutive annual dividend increases.

Marlboro still accounts for the vast majority of Altria's profits, so there could be trouble down the road if the company doesn't make more headway with next-generation smoke-free products. But for now, the dividend is just 75% of earnings, with low-single-digit earnings growth expected over the next three to five years. Investors can continue to cash those dividend checks in confidence.

2. Enjoy a 5.4% yield from this leading wireless carrier

Verizon Communications (NYSE: VZ) is one of the big three wireless carriers in the United States. While competition is fierce among them, Verizon faces little threat from new entrants due to the immense capital required to build out a network. Most Americans depend on their cellphones in their daily lives, so Verizon's business has proven very reliable, almost like a utility. As a result, it has become a very strong dividend stock.

The company has increased the dividend for 22 consecutive years and counting, and the payout is only 56% of this year's earnings estimates. The U.S. market is quite saturated, so don't expect explosive growth. Analysts expect Verizon's earnings to grow by just 4% to 5% annually over the next several years. That said, it's an ideal stock for income-focused investors, and its low beta suggests that it's likely to hold up well if broader market volatility continues.

Should you buy stock in Altria Group right now?

Before you buy stock in Altria Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Altria Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $508,607!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,122,746!*

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*Stock Advisor returns as of March 14, 2026.

Justin Pope has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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