key points
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Investing in high-yield dividend stocks can be risky, but the stocks on this list could be gems.
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These stocks yield between 6.2% and 6.4%.
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They are in different sectors of the economy and together can help diversify your portfolio.
Dividend income can be valuable to any type of investor. Whether you use it to pay bills or pad savings, or simply invest it back into the stock market, dividends can help you in a variety of ways. Companies that can consistently pay dividends are also among the safest stocks to invest in, as they must have strong financial positions to do so.
Finding quality high-yield dividend stocks can be a little more challenging, as stocks with very high yields can often be risky. But there are three stocks that pay more than 6% that can help generate a load of recurring dividend income for your portfolio, without adding significant risk: Verizon Communications (NYSE:VZ), United Parcel Service (NYSE:UPS)And Pfizer (NYSE:PFE). Here’s how investing $8,000 in each of these stocks could generate $1,500 in annual dividends for your portfolio.
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Verizon Communications
Verizon is one excellent dividend stocks Ownership as a telecom giant generates a lot of recurring income. Its financial position is quite stable, and while its growth rates are often in the low single digits and may be disappointing for growth investors, it may be ideal for dividend investors.
Currently, Verizon’s stock yields 6.2%, which is much higher than S&P 500 Average 1.2%. Investing $8,000 in telecom stocks would yield dividends of about $500 per year.
This year, Verizon shares have been on a rise, rising more than 11% after the company posted strong quarterly results to end 2025. Last year, its total revenue was $138.2 billion, down 3% from the previous year. While that’s not much, it’s good, steady growth that investors value. Verizon’s stable financial position makes it one of the better dividend stocks that you can keep in your portfolio for the long term.
United Parcel Service
You can get even more yield from logistics giant United Parcel Service, better known simply as UPS. It pays 6.4%, and investing $8,000 in the stock would yield more than $510 in dividends per year.
UPS stock has struggled mightily over the past five years and is down more than 40%, taking its yield to this level. Slow economic conditions and concerns about tariffs have weighed on the stock’s outlook, prompting many investors to look beyond it.
However, UPS is cutting jobs, and it is in the midst of downsizing its business. Amazon In an effort to improve margins and overall profitability. Its revenue declined 3% last year to $88.7 billion, but the company still posted a strong profit of $5.6 billion.
There are challenges ahead for UPS, but the business is not as risky as it might seem at first glance. continuous increase in e-commerceThe need for global shipments, and its dominant position in the industry in which it operates make it an excellent dividend stock to buy and hold.
Pfizer
Pfizer is included in this list of high-yield stocks. In line with others on this list, the drugmaker produces 6.3%.
Pfizer’s stock has fallen more than 25% over the past five years as concerns about its future growth have kept investors away. But through acquisitions and in-house development, Pfizer has built a solid pipeline, resulting in more than 100 drug candidates.
The company faces some uncertainty ahead, but with plenty of assets to work with, it’s not in as dire a position as many investors fear. Last year, it made a profit of $7.8 billion on total revenues of $62.6 billion, with a solid profit margin of over 12%. Revenue declined by less than 2%, but overall, things have been pretty steady for the business recently. And with several drugs in development, hopefully it may soon have a positive growth catalyst that will improve its prospects for the long term.
I’m investing another $8,000 health care stocks Will bring in another $500 in dividends. Overall, the annual dividend income from all of them combined would be a little over $1,500, assuming you invested $8,000 in each of them.
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David Jagielski, CPA No positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Pfizer, and United Parcel Service. The Motley Fool recommends Verizon Communications. The Motley Fool has one Disclosure Policy.