The recent surge across the markets, led by sectors like tech, energy, financials, and industrials, demonstrates that volatility surrounding election results can often drive attention away from more conservative, income-focused investments.
Yet, for investors more focused on wealth conservation than high-risk growth, some stocks offer robust dividend yields and diversification without being overly influenced by political changes. Altria Group (NYSE: MO), Truist Financial (NYSE: TFC), and Verizon Communications (NYSE: VZ) present substantial income opportunities, each with a high dividend yield and a stable business model that prioritizes long-term stability over political shifts. Let’s take a closer look at each one of them below.
Altria Group, Inc.
Known for its roots in the tobacco industry, Altria is shaping to be a solid, high-yield option for investors. Formerly branded as Philip Morris, Altria redefined its focus in 2003 and now includes partnerships with JUUL for smokeless products, Cronos Group for cannabis exposure, and ABInBev in the beverage space. Altria's diversification efforts have allowed it to expand beyond traditional tobacco, making it a versatile play in today’s shifting market.
The stock, up 37% year-to-date, stands out with its robust dividend yield of 7.39%, one of the highest among large-cap stocks. Altria’s recent quarterly performance exceeded expectations, with an EPS of $1.38 and an 18.6% year-over-year revenue increase to $6.26 billion. With its low P/E of 9.33 and a forward P/E of 10.35, Altria represents both value and income potential, an attractive combination for income-oriented investors. Its focus on earnings growth and strategic partnerships make it appealing for those looking to balance risk with a steady income and growth potential.
Truist Financial Corporation
With a market cap of $61 billion, Truist is a powerhouse in American banking. It was formed in 2019 through the merger of BB&T and SunTrust. Despite recent political uncertainty, Truist’s stock performance has remained strong, gaining 26% year-to-date. It currently trades with a forward price-to-earnings (P/E) ratio of 11.77, making it an attractive value within the financial sector.
Adding to its appeal, Truist offers a dividend yield of 4.47%, solidifying its place as a standout dividend performer in the sector. Recently, Truist reported an impressive quarterly EPS of $0.97, topping analyst expectations by $0.08. Revenue also came in strong at $5.09 billion, surpassing the consensus estimate and reinforcing Truist’s strength in a competitive banking landscape. With a consensus rating of Moderate Buy from 22 analysts, Truist Financial continues to attract investor interest as a high-yield stock offering stability and growth.
Verizon Communications
The largest telecom provider in the United States rounds out this trio of high-yield picks. Verizon operates through both consumer and business segments, providing a comprehensive range of communication services nationwide. With a market cap of $173 billion, The telecommunications giant remains well-positioned to capture steady demand for essential telecom services and add to its valuation.
Recently, the stock pulled back from its 52-week high but is still up 9% year-to-date. The pullback has created a potential value-buying opportunity, with the stock now trading at a forward P/E of 8.7 and offering a substantial dividend yield of 6.59%. Further growth potential lies in Verizon’s potential acquisition of Frontier Communications for $9.6 billion, which is expected to expand its market share and enhance its earnings profile. Analysts maintain a consensus Hold rating on the stock, with a price target suggesting double-digit upside potential. This positive sentiment and impressive yield and valuation make Verizon a strong candidate for investors seeking reliable income in a critical sector.