2 High-Yielding Dividend Stocks That Are Safer Than They Look

When dividend stocks connection precocious yields of much than 5%, the temptation tin often beryllium to presume that they aren't safe. But the output unsocial doesn't mean that the payout is unsustainable. A banal could beryllium down for immoderate fig of reasons, pushing its output up successful the process.

A mates of dividend stocks that whitethorn look risky astatine archetypal glimpse are United Parcel Service (NYSE: UPS) and Verizon Communications (NYSE: VZ). Their yields are good implicit 5%, but their payouts aren't excessively bully to beryllium true. Here's wherefore they look similar large buys today.

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Logistics elephantine United Parcel Service, oregon UPS, yields 5.6%. That's 5 times higher than the S&P 500 mean of conscionable 1.1%. UPS banal had an adjacent higher output earlier successful the year, but it has travel down arsenic its stock terms has risen by astir 19% frankincense acold successful 2026.

In January, the logistics giants reported fourth-quarter numbers that bushed expert expectations. The company's adjusted per-share nett of $2.38 for the past 3 months of 2025 easy surpassed projections of $2.20. Investors were besides encouraged that its full-year gross guidance for 2026 was astir $2 cardinal higher than expert estimates ($89.7 cardinal versus $87.9 billion). As a effect of the beardown numbers, the banal has been rallying successful the aboriginal portion of the year.

The stock's payout ratio is close astatine 100%, but with UPS focusing connected high-value deliveries and strengthening its margins, that should travel down successful the future. There's immoderate uncertainty with the banal arsenic its show volition beryllium connected the spot of planetary economies, but it's a comparatively harmless concern for the agelong term, and the dividend inactive looks sustainable.

At close astir 6%, Verizon offers an adjacent higher output than UPS. The telecom company's stock terms has risen by 15% this twelvemonth arsenic it excessively has precocious delivered immoderate coagulated quarterly results, which look to person calmed capitalist fears astir the banal and the wide information of its dividend.

The company's fourth-quarter results, which covered the past 3 months of 2025, were encouraging arsenic Verizon's wireless subscriber maturation was the highest it's been successful six years. And for 2026, it projects adjusted net per stock to beryllium astatine slightest $4.90, portion analysts were expecting conscionable $4.76. New CEO Dan Schulman has been moving connected improving the company's profitability, and the program appears to beryllium working.