Wall Street Says Sell US Market Rallies: Never Sell These 4 High-Yield Dividend Giants

The “buy the dip” strategy worked flawlessly for over two years. Any significant drop in the stock market led to a sharp snapback rally, especially for the companies that make up the Magnificent 7. Now, we are facing what could be a significant decline in the equity markets, especially if we encounter a recession in the second half of the year.

Some Wall Street economists and strategists advise selling any U.S. rally and then increasing equity exposure in Europe, China, or emerging markets. They cite the fact that the U.S. market is expensive to other regions and U.S. earnings growth is deteriorating while those other regions are seeing positive earnings revisions. With the Magnificent 7 struggling could the negative voices from Wall Street be correct?

While we at 24/7 Wall St. acknowledge that the stock market is expensive and we may be in for more selling if the economy stumbles in the second half of the year, when it comes to high-yield dividend stocks, in many cases, there is no place like home. When a U.S. investor receives dividends from a foreign company, the broker typically withholds a portion of the payment and sends it to the foreign government. This deduction represents the foreign tax withholding on dividends, which reduces the amount of overseas dividend income you receive. This is in addition to any applicable U.S. taxes.

We screened our 24/7 Wall St. high-yield dividend research database, and four top companies that all pay dividends of 4% or higher can still be purchased at current prices. All should be permanent portfolio members, rather than buying European, Asian, or emerging market dividend stocks. All are rated Buy at top Wall Street firms that we cover.

Why do we cover high-yield dividend stocks?

High-yield dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Altria

This is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products, and its stock offers value investors a great entry point. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States.

The company provides cigarettes primarily under the Marlboro brand, as well as:

• Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! Oral nicotine pouches
• e-vapor products under the NJOY ACE brand

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria used to own over 10% of Anheuser-Busch InBev, the world’s largest brewer. Last year, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.

Altria recently increased its quarterly dividend by 4.1%, from $0.98 to $1.02 per share, marking its 59th dividend increase in the past 55 years.

BofA Securities has a Buy rating with a $61 target.

Dow

This materials science company offers a wide range of products and services. Dow Inc. (NYSE: DOW) was spun out from DuPont in 2019 and removed from the Dow Jones Industrial Average in November. The stock offers investors growth and income potential.

The company is organized into three principal divisions:

• Performance Materials & Coatings
• Industrial Intermediates & Infrastructure
• Packaging & Specialty Plastics

The company’s segments include Agricultural Sciences, which provides crop protection, seed and plant biotechnology products and technologies, urban pest management solutions, and healthy oils.

Consumer Solutions, which consists of:

• Consumer Care
• Dow Automotive Systems
• Dow Electronic Materials
• Consumer Solutions-Silicones businesses

Infrastructure Solutions, which consists of:

• Dow Building & Construction
• Dow Coating Materials
• Energy & Water Solutions
• Performance Monomers and Infrastructure Solutions-Silicones businesses

Performance Materials & Chemicals, which consists of Chlor-Alkali and Vinyl, Industrial Solutions and Polyurethanes businesses.

Performance Plastics, which consists of Dow Elastomers, Dow Electrical and Telecommunications, Dow Packaging and Specialty Plastics
Energy and Hydrocarbons business.

Dow has maintained the current dividend payout for the past 24 quarters, and it is expected to continue that streak in 2025.

Wells Fargo has an Overweight rating with a target price of $50.

Pfizer

Pfizer Inc. (NYSE: PFE) was established in 1849 in New York by two German entrepreneurs. This top pharmaceutical stock was a massive winner in the COVID-19 vaccine sweepstakes but has struggled over the past two years as many people are not getting boosters. Pfizer discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide.

The company offers medicines and vaccines in various therapeutic areas, including:

• Cardiovascular metabolic and women’s health under the Premarin family and Eliquis brands
• Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
• Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands.

Pfizer also provides medicines and vaccines in various therapeutic areas, such as:

• Pneumococcal disease, meningococcal disease, tick-borne encephalitis
• COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands
• Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands
• Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands

Pfizer recently increased its quarterly dividend to $0.43 per share, a 2.4% increase from the previous dividend of $0.42. This marks the company’s 345th consecutive quarterly dividend payment and 15th year of dividend growth.

Truist Financial has a Buy rating with a $32 target price.

Verizon

Another Wall Street favorite, Verizon Communications Inc. (NYSE: VZ), commonly known as Verizon, is an American multinational telecommunications conglomerate. Its stock offers tremendous value, trading at 9.3 times its estimated 2026 earnings per share. Verizon provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.

It operates in two segments:

• Verizon Consumer Group
• Verizon Business Group

The Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as through wholesale and other arrangements.

It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:

• Smartphones
• Tablets
• Smartwatches and other wireless-enabled connected devices

The segment also offers wireline services in the Mid-Atlantic (including the District of Columbia) and northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and copper-based network.

The Business segment provides wireless and wireline communications services and products, including:

• FWA broadband
• Data
• Video and conferencing
• Corporate networking
• Security and managed network
• Local and long-distance voice

Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.

When Verizon raised its dividend last November, it marked the 18th straight year the company has increased the quarterly payout to shareholders.

Tigress Financial has a Buy rating and a Wall Street high target of $55.

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