Investors love dividend stocks, especially those with ultra-high yields, because they offer a significant income stream and have substantial total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. At 24/7 Wall St., we consistently emphasize the potential of total return. It is one of the most effective ways to enhance the prospects of overall investing success. Once again, total return refers to the collective increase in a stock’s value, including dividends. After a massive sell-off from February to April, followed by a gigantic snapback rally, the stock market is again overbought and looks prone to another leg down.
24/7 Wall St. Key Points:
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Since the market low on April 8, the S&P 500 is up almost 27%.
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Many across Wall Street think a sizable correction could be on the way.
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Some feel that the Federal Reserve will lower rates three times in 2025, starting in September.
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Buying the dip is a stock market strategy in which investors purchase stocks after a significant price drop, anticipating that the price will rebound. The “dip” refers to a temporary decline in a stock’s price or the broader market, often due to short-term factors like market sentiment, news, or profit-taking, rather than a fundamental change in the stock’s value. The idea is to buy at a lower price to capitalize on potential gains when the price recovers. While this strategy has worked incredibly well over the past few years, there may come a time when it no longer works. However, many top analysts and equity strategists believe that while another sell-off is likely to occur, investors who buy the dip will see stocks end up higher than current levels and reach all-time highs by the end of 2025.
We screened our 24/7 Wall St. ultra-high-yield dividend stock research database to identify stocks that would be screaming buys on a 10% sell-off from current levels. Five of our favorite companies would be excellent buys if their prices drop by 10% to 15%. All are rated Buy at top Wall Street firms, and all make sense for growth and income investors.
Why do we cover ultra-high-yield dividend stocks?
While these stocks may not be suitable for everyone, investors looking to build strong passive income streams can benefit from including some of these top companies in their portfolios. Paired with more conservative blue-chip dividend giants, investors can employ a barbell approach to generate substantial passive income streams.
Altria
Altria Group Inc. (NYSE: MO) is one of the world’s largest producers and marketers of tobacco, cigarettes, and related products. This tobacco company offers value investors a compelling entry point and a generous dividend yield. Altria manufactures and sells smokable and oral tobacco products in the United States.
The company provides cigarettes primarily under the Marlboro brand, as well as:
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Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
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Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
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on! Oral nicotine pouches
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e-vapor products under the NJOY ACE brand
It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria used to own over 10% of Anheuser-Busch InBev N.V. (NYSE: BUD), the world’s largest brewer. Earlier this year, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.
Stifel has a Buy rating with a $63 target price.
Edison International
Trading near a 52-week low with one of the highest dividends in the utility sector, this is a strong idea for the rest of 2025. Edison International Inc. (NYSE: EIX) is an electric utility holding company focused on providing clean and reliable energy and energy services through its independent companies. It is the parent holding company of Southern California Edison Company (SCE) and Trio.
SCE is a public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area across southern, central, and coastal California.
Trio is a global energy advisory firm providing integrated sustainability and energy advisory services to large commercial, industrial, and institutional organizations in North America and Europe.
Trio provides integrated strategy and implementation solutions in:
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Sustainability
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Renewables
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Energy procurement
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Conventional supply
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Energy optimization
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Transportation electrification
Barclays has an Overweight rating on the shares with a $67 target price.
Enterprise Products Partners
Enterprise Products Partners L.P. (NYSE: EPD) is an American midstream natural gas and crude oil pipeline company headquartered in Houston, Texas. This company is one of the largest publicly traded energy partnerships, paying a very reliable dividend. Enterprise Products Partners provides various midstream energy services, including:
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Gathering
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Processing
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Transporting and storing natural gas, natural gas liquids (NGL), and fractionation
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Import and export terminalling
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Offshore production platform services
The company has four reportable business segments:
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Natural Gas Pipelines and Services
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NGL Pipelines and Services
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Petrochemical Services
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Crude Oil Pipelines and Services
One reason many analysts like the stock might be its distribution coverage ratio. The company’s coverage ratio is well above 1x, making it relatively less risky in the MLP sector.
J.P. Morgan has an Overweight rating with a $38 price objective.
Prudential Financial
Prudential Financial Inc. (NYSE: PRU) offers a range of insurance, investment management, and other financial products and services. With a rich dividend, this insurance and investment giant is a safe investment option for conservative investors. Prudential provides insurance, investment management, and other financial products and services in the United States and internationally.
It operates through five segments:
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PGIM
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Retirement Strategies
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Group Insurance
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Individual Life
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International Business segments
The PGIM segment offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit, and other alternatives, as well as multi-asset class strategies, to institutional and retail clients, as well as its general account.
The Retirement Strategies segment provides a range of retirement investment and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors. It develops and distributes individual variable and fixed annuity products.
The Group Insurance segment offers:
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Various group life plans
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Long-term and short-term group disability
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Group corporate, bank, and trust-owned life insurance in the United States primarily for institutional clients for use in connection with employee and membership benefits plans
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Accidental death and dismemberment, and other supplemental health solutions
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Plan administration services in connection with its insurance coverages
The Individual Life segment develops and distributes variable life, universal life, and term life insurance products.
The International Businesses segment develops and distributes life insurance, retirement products, investment products, specific accident and health products, and advisory services. The company provides its products and services to individual and institutional customers through its proprietary and third-party distribution networks.
Jefferies has a Buy rating with a $134 target price.
Verizon
Verizon Communications Inc. (NYSE: VZ) is an American multinational telecommunications company that continues to offer tremendous value. It trades at 9.13 times its estimated 2026 earnings and is up over 10% in 2025. Verizon provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide through two segments.
The Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as through wholesale and other arrangements. It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:
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Smartphones
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Tablets
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Smartwatches and other wireless-enabled connected devices
The segment also offers wireline services in the Mid-Atlantic and northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and copper-based network.
The Business segment provides wireless and wireline communications services and products, including:
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FWA broadband
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Data
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Video and conferencing
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Corporate networking
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Security and managed network
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Local and long-distance voice
Network access services deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.
Tigress Financial has a Buy rating and a price target of $56.
Five Stocks Trading Under $10 That Pay Massive Monthly Ultra-High-Yield Dividends
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The post On the Next Big Sell-Off, We Are All In on 5 Ultra-High-Yield Dividend Titans appeared first on 24/7 Wall St..
