In a market where growth stocks often steal the spotlight, reliable income still matters, especially during periods of uncertainty. High-yield dividend stocks with solid business models and steady cash flows continue to earn Wall Street’s confidence, offering investors a blend of income and stability.
Here are three high-yield dividend stocks Wall Street still trusts to deliver dependable income, even when markets turn volatile.
Valued at $170.7 billion, Verizon Communications (VZ) is one of the largest telecommunications companies in the United States, providing wireless, broadband, and enterprise connectivity services. The company’s core strength lies in its wireless business, which generates consistent, recurring revenue from millions of subscribers. This stability supports Verizon’s attractive dividend, making it a favorite among income-focused investors looking for consistency rather than quick growth.
Verizon pays a high dividend yield of 6.8% and maintains a healthy payout ratio of 57.6%, which leaves room for dividend growth as well as business expansion. It also has been paying and increasing dividends for the past 20 years, backed by steady cash generation from essential communication services. Verizon expects to generate free cash flow between $19.5 billion and $20.5 billion for the full year; that should help it continue the payouts.
Overall, Wall Street rates VZ stock as a “Moderate Buy.” Of the 28 analysts that cover the stock, eight rate it a “Strong Buy,” three recommend a “Moderate Buy,” and 17 suggest a “Hold.” Based on the average target price of $47.22, the stock has an upside potential of 16.6% from current levels. Its Street-high estimate of $58 further implies VZ stock can go as high as 43.3% in the next 12 months.
www.barchart.com
AT&T (T) remains a high-yield dividend stock that Wall Street continues to trust, thanks to its essential role in U.S. communications infrastructure. Valued at $177.1 billion, AT&T is one of the country’s largest telecom providers, delivering wireless, broadband, and enterprise connectivity services to millions of customers nationwide. AT&T’s wireless segment provides mobile voice and data services to consumers and businesses, generating steady, recurring revenue that allows it to pay consistent dividends.
AT&T’s dividend yield is 4.5%, which is significantly higher than the communications sector average of 2.6%. Its healthy payout ratio of 50% is supported by consistent cash flows from critical communication services. The company intends to generate free cash flow in the low-to-mid $16 billion range for the full year 2025, leaving the door open for dividend increases.
Overall, Wall Street rates AT&T stock as a “Moderate Buy.” Of the 28 analysts that cover the stock, 15 rate it a “Strong Buy,” three say it is a “Moderate Buy,” and 10 rate it a “Hold.” Based on the average target price of $29.68, the stock has an upside potential of 19.8% from current levels. Its Street-high estimate of $34 further implies the stock can go as high as 37.2% in the next 12 months.
www.barchart.com
Altria Group (MO) is one of Wall Street’s most trusted high-yield dividend stocks, built on decades of steady cash generation and disciplined capital returns. Best known for owning the iconic Marlboro brand in the U.S., Altria dominates the domestic tobacco market and has long been a cornerstone holding for income-focused investors.
Valued at $96.7 billion, Altria sells cigarettes and smokeless tobacco products, generating highly predictable revenue thanks to strong brand loyalty and pricing power. Even as cigarette volumes decline industry-wide, Altria has consistently offset this trend through regular price increases, protecting margins and cash flow. That resilience underpins one of the most reliable dividend profiles in the market. Altria’s high dividend yield of 7.4% is higher than the consumer staples average of 1.9%. Altria has earned the title of a Dividend King by increasing its dividend 60 times in the past 56 years, reassuring its status as one of the most reliable dividend profiles in the market.
Overall, on Wall Street, Altria stock is a “Hold.” Of the 14 analysts covering the stock, four rate it a “Strong Buy,” eight rate it a “Hold,” one says it is a “Moderate Sell,” and one rates it a “Strong Sell.” Based on the average target price of $61.45, the stock has an upside potential of 6.6% from current levels. Its Street-high estimate of $72 further implies the stock can go as high as 25% in the next 12 months.
www.barchart.com
On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
Analysts continue to raise their revenue and stock price targets for Shopify, Inc. (SHOP). Its new target price is 20% higher. This article will demonstrate how to achieve a 3.0% yield by shorting one-month away SHOP puts at a 4% out-of-the-money strike price.
SHOP closed at $146.82 on Friday, Sept. 5, with a $191.274 billion market cap. That is well over my prior target price of $137 at a 178 billion market valuation.
SHOP stock – last 3 months – Barchart – As of Sept. 5, 2025
This can be seen in my July 13 Barchart article, just after its Q2 earnings release (“Shopify Stock is a Bargain – How to Make a 3.2% One-Month Yield with SHOP“).
Since then, Shopify delivered strong Q2 results on Aug. 6. This article will update our prior target price based on its strong free cash flow (FCF) and FCF margins.
Shopify, which competes more and more with Amazon (AMZN) in the third-party online seller space, said its Q2 revenue rose 31% to $2.68 billion from $2.045 billion a year ago.
Moreover, its free cash flow (FCF), which is what is left over after all cash expenses, net working capital changes, and even capex spending, rose by +$26.7% to $422 million.
That means that, as a percent of revenue, its FCF represented 15.75% of sales (which Shopify rounds up to 16%) compared to 15.38% last quarter and 16.3% last year.
Shopify Q2 FCF and FCF margins page 6 of Q2 earnings release
That implies that the company is continuing to squeeze out good amounts of cash from its operations, even as sales keep rising.
Keep in mind that during Q4, Shopify tends to make significantly higher FCF margins during the Christmas season.
For example, last Q4, its FCF margin was 21.73%, according to Stock Analysis. As a result, its look-back trailing 12 months (TTM) FCF margin as of Q2 was 18.14%, based on Stock Analysis data. In Q1, its TTM FCF margin was slightly higher at 18.42%.
As a result, assuming the next Q4 margin will rise, we can use an 18.5% FCF margin to forecast its next 12 months (NTM) free cash flow.
Analysts now project 2025 sales will be $11.26 billion (up from $10.88 billion in my prior Barchart article). Moreover, the 2026 sales forecast is now $13.75 billion, up from $13.11 billion.
That implies that Shopify’s next 12 months (NTM) revenue will be on a run rate of $12.505 billion (up from $12.0 billion in my prior article).
That is 4.2% higher than my prior estimate of $2.22 billion.
We can use that FCF estimate to forecast its target price.
If we assume that Shopify will eventually pay out 100% of its FCF to shareholders, and that the market will give the stock a 1.0% FCF yield, here is its valuation:
$2.3134 billion / 0.01 = $231.34 billion market value
Today, Shopify’s market cap is $191.274 billion, according to Yahoo! Finance:
In other words, SHOP stock could be worth almost 21% more over the next 12 months:
$146.82 x 1.2095 = $177.58 per share
The point is that if the company makes an 18.5% FCF margin and the market gives the stock a 1.0% FCF yield valuation, the stock could rise 21% to $177.58.
Analysts tend to agree with this. For example, AnaChart.com now shows that 34 analysts have a price target of $155.33.
One way to play this is to set a lower buy-in target price by shorting out-of-the-money (OTM) puts. That way an investor can make a good yield while waiting for the stock to fall.
For example, look at the Oct. 10 expiration period, one month away (i.e., 33 days to expiration or DTE). It shows that the $141.00 put option contract, which is 4% below Friday’s close, has a midpoint premium of $4.35 per put contract.
That implies that a short-seller of these puts can make an immediate yield of 3.085% (i.e., $4.35/$141.00 = 0.03085).
SHOP puts expiring Oct. 10, 2025 – Barchart – As of Sept. 5, 2025
To do this, an investor first secures $14,100 with their brokerage firm in cash or buying power. That acts as collateral to buy 100 shares of SHOP stock, in case it falls 4% to $141.00 (each contract has 100 shares).
Then, after entering an order to “Sell to Open” 1 put contract at $141.00, the account will immediately receive $435.00. That is why this play has a 3.085% yield (i.e., $435/$14,100).
Note that the investor who does this play has a lower potential break-even buy-in point:
$131.00- $4.35.00 = $136.65 breakeven
That is -6.92% below Friday’s closing price, so it provides a good downside protection.
However, this only applies if SHOP falls to $141.00 and the account is assigned to buy 100 shares using the collateral already posted.
The point, however, is that an investor has a good upside this way. On the one hand, they can make an immediate yield of 3.085%. If this is repeated for three months, the expected return (ER) could be +9.255%.
That is the same as holding shares and seeing SHOP stock rise to $160.81 over the next 3 months. Moreover, an investor could also buy deep in-the-money (ITM) calls for a further out period and use these short-put plays to help pay for the cost. That way, they may have some upside if SHOP keeps rising from here.
However, if SHOP falls below the breakeven point over the next month, an investor could end up with an unrealized capital loss. Investors can study the downside risks by going to Barchart’s Option Education Center.
The bottom line is SHOP stock looks cheap here. Shorting OTM puts and/or buying ITM calls is one way to play it.
On the date of publication, Mark R. Hake, CFA did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
