4 Brilliant High-Yield Stocks to Buy Now and Hold for the Long Term

Investing for high yields in consumer goods presents a problem in 2026. Many of the highest yields in the sector come from companies under genuine pressure, where the dividend yield itself signals stress rather than strength.

The right approach is to learn how to separate yields that reflect a working business model from yields that reflect a market expecting a cut. Four consumer goods names worth looking at right now sit on different points along that spectrum, but each has a recognizable path forward and deserves examination.

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1. Philip Morris International

Philip Morris International (NYSE: PM) has effectively positioned itself as a company whose alternative tobacco products are the growth story while it continues to support a substantial dividend. First-quarter 2026 results showed net revenue rising 9.1% year over year to $10.1 billion. Growth in adjusted earnings per share (EPS) was 16%, and the company updated full-year 2026 adjusted EPS guidance to a range of $8.36 to $8.51.

Growth in its Zyn nicotine pouches in the U.S. has been the standout driver, alongside its Iqos heated-tobacco system and Veev e-cigarettes internationally. The risk worth naming is regulatory: Zyn and similar products sit within an evolving policy landscape with the Food and Drug Administration and individual states that can make adverse decisions that shift volume quickly.

Philip Morris International pays an annual dividend of $5.76, which yields 3.4%. The payout ratio is a manageable 81%, which is below its five-year average of 93%, and it has raised the dividend annually since the company was formed 17 years ago.

British American Tobacco

British American Tobacco (NYSE: BTI) is taking a different growth path to reach the same destination. Management has emphasized expanding distribution of its Velo Plus nicotine pouches, which are the fastest-growing brand in the fastest-growing category, and has pointed to gains in market share among vapor products for its Vuse e-cigarettes, alongside accelerating enforcement against illegal products.

The stock continues to offer one of the highest yields in large-cap consumer goods at 5%, and full-year 2025 results showed EPS up 3.4%. The risk profile mirrors Philip Morris: slower combustible volumes offset by smoke-free growth, with regulation as the swing factor.

British American Tobacco pays an annual dividend of $3.24, which yields 5%. The payout ratio is a healthy 69%, which is below its five-year average of 98%, and it has raised the dividend annually for 29 consecutive years.

Hormel

Hormel Foods (NYSE: HRL) is a Dividend King, a company that has grown its dividend annually for at least 50 consecutive years -- in this case, 60 years. The annual dividend is $1.17 per share and the yield is 5.9%.

Hormel has had a rough multiyear stretch but is showing early signs of stabilization. Its Transform & Modernize initiative is targeted at generating roughly $250 million in annual savings through supply chain optimization and portfolio simplification, with international expansion in China through a new meat-snacking factory expected to reach full capacity by mid-2026.

My honest concern is the payout ratio, which was 131% of earnings over the past 12 months, leaving less cushion than long-term Hormel investors are used to. The five-year payout ratio average is a more reasonable (but somewhat high) 75%.

Conagra

Conagra Brands (NYSE: CAG) has the highest yield of the group and the most visible doubt in the market about whether the dividend is fully covered. The current yield sits near 9.7% to 9.9% with a quarterly dividend of $0.35 per share ($1.40 annually). The payout ratio is a somewhat high 80%, and the dividend was not raised this past year.

For investors comfortable with elevated risk, the case is straightforward: The company owns durable frozen and shelf-stable brands, management has been working on portfolio reshaping, and the valuation already discounts a meaningful amount of stress.

The case against it is that volumes of frozen and packaged foods have been weak across the industry, GLP-1 weight-loss drugs are influencing consumption patterns at the margin, and a dividend cut is not impossible if free cash flow does not improve.

How to think about the mix

A useful framing is to split these four into three groups. Philip Morris and British American Tobacco are smoke-free transition stories with growing dividends and regulation as the central risk. Hormel is an operational turnaround story with reasonable dividends and execution as the central risk. Conagra is a high-yield, deep-value name, with the dividend itself at the center of the debate.

For a long-term, income-focused portfolio, the cleanest approach is usually to be weighted more heavily toward names with dividends clearly supported by current cash flow, accept lower yields in exchange for higher reliability, and use the riskier names only in measured size. High yield without context is a trap. For investors willing to do the work of differentiating among them, the combination can build a real income stream for years rather than just a snapshot of headline yield.

Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool recommends British American Tobacco P.l.c. and Philip Morris International. The Motley Fool has a disclosure policy.