2 High-Yield Dividend Stocks Yielding Over 6% That’ll Pay You to Wait

High-yielding dividend stocks may not be the ticket to superior returns, but they can rank pretty high on the list of nice-to-haves for investors in retirement or those who could use a bit of extra financial flexibility at the end of any given month.

In this piece, we’ll check out a pair of dividend stocks with above-average yields (over the 6% mark) that are cheap enough so that investors may very well get a good mix of capital gains alongside consistent dividend payments. And if all goes well, perhaps a good amount of dividend growth can also be enjoyed by investors looking to pick up shares on recent weakness.

Pfizer

Shares of biopharmaceutical firm Pfizer (NYSE:PFE) now possess a towering 7.47% dividend yield. After shedding more than 60% of its value from those brief COVID-era highs in late 2021, shares stand out as a deep-value play of sorts. But there have been some notable pressure points that have had some dip-buyers hitting the pause button.

Despite falling short of Wall Street sales targets, the company’s latest earnings result managed to garner some investor enthusiasm. And while some folks may now compare shares of PFE to a junk bond, I’d argue that the company has more than enough levers to dampen its fall from a patent cliff.

Undoubtedly, when drugs go off patent, it can be really tough to make up. And while Pfizer has been exploring numerous growth levers (think weight-loss drugs and, more recently, cancer drugs), it’s tough to know which efforts will move the needle on the stock. In short, they’ve been a falling knife. And they could have further room to the downside if Pfizer can’t get back on the high track. 

The company acquired its way into the experimental cancer drug scene. And many analysts believe that Pfizer paid too high a price. Indeed, Pfizer really does need a big win (a blockbuster treatment of some sort), but rushing into the M&A scene, I think, may not be the best way to go. At the end of the day, acquisitions only seem to be a boon if the price of admission makes sense.

Given how difficult it can be to forecast the success of even the most promising drug, it’s tough to tell where the puck is headed next. In any case, Pfizer stock looks dirt-cheap for those with a strong stomach for volatility. At the time of writing, PFE stock trades at just 7.9 times forward price-to-earnings (P/E). That’s absurdly cheap. And you’re getting a nice near-7.5% yield. Perhaps it is time to give the fallen biopharma firm the benefit of the doubt.

Verizon

Verizon (NYSE:VZ) stock has come such a long way in the past year and a half, now up over 41% from its multi-year lows briefly hit back in late 2023. Of course, the $183 billion telecom juggernaut isn’t in the clear just yet, even if shares have had less issue navigating the tariff-fuelled volatility.

The 6.3%-yielder could certainly continue its run if there’s another “flight to safety.” However, if tariffs do lead to higher smartphone prices, the relatively resilient telecoms could really start to feel the shockwaves. Indeed, as CEO Hans Vestberg said, any tariff-induced smartphone price hikes are “going to hit the consumer.”

Despite this, I view VZ stock as incredibly cheap at 9.2 times forward P/E. With a 0.38 beta, shares of VZ could certainly hold up come the next tariff plunge. As Trump targets smartphones specifically, though, it’s unclear if VZ stock will be so resilient the next time investors rush to the exits.

If you’re in the market for a yield over 6% and you’re willing to take on more risk, I’d not be against averaging into a position through the year. Just don’t get caught chasing, as there’s still work to be done before Verizon can escape its multi-month consolidation channel in the low $40s.

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