3 High-Yielding Stocks That Investors Can Buy and Forget About
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In a high-yielding stock can come with risks. While it's tempting to think of the dividend income you might generate from a stock that pays a high yield, there is...
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July 8, 2025
05:20 AM
The Motley Fool
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In a high-yielding stock can come with risks
While it's tempting to think of the dividend income you might generate from a stock that pays a high yield, there is the danger that a company slashes its dividend or suspends it, especially amid challenging economic conditions
But there are at least three stocks out there offering above-average yields that are still safe options for income investors to consider today
They are: Verizon Communications (VZ -1. 75%), Duke Energy (DUK -0. 02%), and Kimberly-Clark (KMB -0
Here's why you can safely hang on to these stocks for years, and why you should expect to see your dividend income from these three investments rise over time
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Verizon Communications At 6. 3%, Verizon's dividend yield is well above average
By comparison, the S&P 500 average yield is just 1
The big knock on Verizon today is that its hasn't been growing much -- sales of $134. 8 billion in 2024 were not a whole lot higher than the $133. 6 billion it reported back in 2021
But for dividend investors, there's good reason to stick with Verizon
It's a leading telecom vider, and over time, consumers will upgrade their phones and plans, which can spark more revenue growth in the future
However, with a strong fit margin of more than 13%, and the stock trading at just 10 times its trailing earnings, Verizon can be one of the better income investments to hang on to today
The company has also increased its dividend for 18 straight years, and its payout ratio remains sustainable at 64% of its earnings
It may take some time for investors to warm up to the stock again, but that may happen if market conditions deteriorate and concerns rise the overall economy -- this could be a safe-haven type of stock to hang on to
Buying Verizon stock today could ve to be a good move for the long term
Duke Energy Another attractive dividend stock to own is Duke Energy, whose payout yields 3
The energy holding company manages multiple utilities that vide customers with electricity and natural gas, which are crucial services year-round
In these types of es can give your portfolio a lot of long-term stability, and it's no surprise the stock has a fairly low beta of 0. 36, which tells investors that this is a low-volatility investment to hang on to; it won't be as erratic as the overall market
In the trailing 12 months, Duke has generated $30. 9 billion in revenue with earnings on that totaling $4. 7 billion, for a solid fit margin of 15%
With a stable and high margins, this is an excellent example of a good stock to invest in for the long haul
Duke's dividend only sweetens the deal, as the stock has paid dividends for 99 straight years
And in 10 years, its quarterly per- dividend has risen by 31%, from $0
Meanwhile, its modest payout ratio of 69% suggests there's still room for more dividend increases ahead
Whether you're looking for dividend income or stability, Duke Energy can make for a fantastic investment to consider for your portfolio today
Kimberly-Clark in es which sell essential day-to-day ducts can also enable you to find a strong long-term stocks to hang on to
Kimberly-Clark owns many top and recognizable consumer brands such as Huggies, Kleenex, Scott, and many others
The company's sales have hovered around $20 billion in each of the past three years
And its fit margins are typically around 10% or better
The dependency consumers have on its trusted brands should enable it to generate at least modest growth in the long run, particularly as the population grows
Kimberly-Clark is a special income stock as it has raised its dividend payments annually for 53 consecutive years, making it a Dividend King
While that doesn't mean that it will continue increasing its dividend in the future, it does indicate a commitment to growing its payout
And with its payout ratio at around 67%, there's no reason to suspect the company won't be able to raise its dividend in the coming years
With an already high yield of 3. 9%, Kimberly-Clark is another low-volatility stock that you can feel comfortable putting in your portfolio for the long term
David Jagielski has no position in any of the stocks mentioned
The Motley Fool recommends Duke Energy and Verizon Communications
The Motley Fool has a disclosure policy.
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