Despite dropping by more than 40%, these established income stocks with an average yield of 7.57% are appealing to savvy investors. Investing in dividend stocks is a popular way to grow wealth steadily over time. A recent study by Hartford Funds and Ned Davis Research found that dividend-paying stocks outperformed non-payers over the last 50 years, with less volatility.
Two undervalued high-yield dividend stocks worth considering are AT&T and Altria Group. AT&T, despite a 42% drop in stock price, offers a safe 6.4% dividend yield. The company’s debt and potential liabilities are concerns, but improvements in its financial position and steady revenue from its core operations make it an attractive investment.
Altria Group, with an 8.7% yield, has raised its dividend 58 times in the past 54 years. While facing challenges due to declining smoking rates, the company maintains pricing power and market share in the U.S. cigarette market. Its acquisition of NJOY Holdings and strategic investments in Cronos Group show potential for growth.
Both companies offer attractive yields and potential for long-term growth, making them enticing options for income-seeking investors.