NYSE: BTI
British American Tobacco
Premium Feature
Moneyball Superscore
63/100
Today’s Change
(-0.76%) $-0.43
Current Price
$56.09
Key Data Points
Market Cap
$122BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$55.94 – $56.99
52wk Range
$49.88 – $67.30
Volume
3.5M
Avg Vol
4.7M
Gross Margin
60.95%
Dividend Yield
5.73%
The tobacco industry is known for high-yield stocks, but the one with the best combination of a juicy yield and some growth is British American Tobacco (BTI -0.76%). The stock currently yields 5.8%, and the company plans to increase its dividend by 2% this year while also buying back stock.
Over the medium term, British American Tobacco is looking to grow its revenue by 3% to 5% annually and its adjusted EPS by 5% to 8% a year. Growth will come from strong pricing power in its legacy combustible business and mid-teens growth in its smokeless categories. Leading the charge will be its Velo nicotine pouches, whose revenue it has projected to continue to surge over the next several years. Meanwhile, it has been forecasted that it will generate a massive £50 billion in free cash flow between 2024 and 2030, helping it deleverage and support its dividend growth.
2. Verizon
Expand
NYSE: VZ
Verizon Communications
Premium Feature
Moneyball Superscore
70/100
Today’s Change
(-3.29%) $-1.69
Current Price
$49.76
Key Data Points
Market Cap
$214BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$49.33 – $51.56
52wk Range
$38.39 – $51.68
Volume
24.3M
Avg Vol
25.8M
Gross Margin
45.71%
Dividend Yield
5.43%
Another stock with an attractive yield and some nice potential growth is Verizon (VZ -3.29%). The wireless operator’s stock currently has a 5.5% yield and it consistently raises its dividend each year. The dividend is well covered by its free cash flow, and it carries low leverage.
Meanwhile, the company still has a nice growth opportunity ahead of it. With Dan Schulman taking over as CEO last October, the company has embarked on a more customer-centric strategy, which has reduced churn and led to more subscriber additions. Meanwhile, ing the close of its deal for Frontier and its large fiber network, Verizon has a big broadband and wireless bundling opportunity ahead. It’s also looking to connect AI data centers with its fiber, adding another layer of growth for this solid company.
Image source: Getty Images.
3. Realty Income
With a 5.5% yield, Realty Income (O -2.66%) is a great option for dividend investors. The real estate investment trust (REIT) pays a monthly dividend, which it consistently increases.
The REIT owns a portfolio of commercial real estate properties, with a focus on single-tenant retail in recession-resistant industries. More recently, it has expanded into other areas, including the industrial, gaming, and data center spaces, while growing more aggressively in Europe. It uses triple-net leases, where tenants pay the taxes, insurance, and maintenance, so it’s not hit with any surprises on the expense side. While interest rates and cap rates can impact the value of its real estate portfolio, this is a steady performer to own.
4. Energy Transfer
Expand
NYSE: ET
Energy Transfer
Today’s Change
(-1.03%) $-0.22
Current Price
$21.11
Key Data Points
Market Cap
$73BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$20.99 – $21.42
52wk Range
$16.18 – $21.84
Volume
6.8M
Avg Vol
8.6M
Gross Margin
10.94%
Dividend Yield
6.31%
Another top stock for income-oriented investors to hold over the next decade is Energy Transfer (ET -1.03%). The midstream master limited partnership (MLP) sports a 6.3% yield and is targeting a 3% to 5% annual payout increase going forward. The company’s balance sheet is in the best shape it’s been in for years, and it has a robust distribution coverage ratio based on its distributable cash flow (operating cash flow minus maintenance capex).
Energy Transfer has one of the largest midstream footprints in the U.S., and it is using its strong position in the Permian Basin to help take advantage of high demand for cheap natural gas. AI data centers and LNG (liquefied natural gas) exports are driving natural gas demand, and Energy Transfer will spend up to $5.9 billion in growth capex this year on high-return projects as a result.
With both one of the cheapest valuations and best growth in the pipeline space, Energy Transfer is a top dividend stock to own over the next decade.
Read Next
•By Matt DiLallo
7 Best Pipeline Stocks for 2026 and How to Invest
•By Selena Maranjian
•By Geoffrey Seiler
3 High-Yield Energy Stocks to Buy in September
•By Leo Sun
•By Leo Sun
Energy Transfer’s Payout Is Covered Twice Over. Here’s Why That Matters More Than the Yield Itself.
•By Matt DiLallo
5 Best Oil ETFs for 2026 and How to Invest
About the Author
Geoffrey Seiler is a contributing Motley Fool stock market analyst covering technology, consumer goods, healthcare, energy, and materials stocks. Prior to The Motley Fool, Geoffrey was a senior equity analyst at Raging Capital Management, a $600 million long-short hedge fund. He holds a bachelor’s degree in history from Haverford College.
Stocks Mentioned
Energy Transfer
NYSE: ET
$21.11
(-1.03%)-$0.22
Motley Fool Stock Advisor’s Latest Pick
—% Avg Return
Verizon Communications
NYSE: VZ
$49.76
(-3.29%)-$1.69
Realty Income
NYSE: O
$57.15
(-2.66%)-$1.56
British American Tobacco
NYSE: BTI
$56.09
(-0.76%)-$0.43
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Sumber Artikel:
Fool.com
