4 Low-Risk Dividend Stocks Offering Ultra-High Yields

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There are several ways to make money in the stock market, but some are riskier than others. For example, growth stocks can lead to tremendous price appreciation, but they can also lead to significant losses if things go wrong. So if you’re a risk-averse investor, you’ll probably want to stay away from these types of investment opportunities.

Consider looking into low-risk dividend stocks instead. These stocks typically represent well-established companies that have a proven track record of generating revenue and profitability. In fact, they’re so confident they can produce profitability that they share their profits with investors through dividend payments. So what are some of the best low-risk dividend stocks to buy right now? Find a few to consider below.

Key Points :

• British American Tobacco is offering a low-risk way to tap into a dividend yield of over 10%.
• You can earn a dividend yield of over 8% by investing in OneMain Holdings.
• Verizon Communications and Enbridge both pay healthy dividends with a yield of over 6% annually.
• Are you looking for dividend stocks you should buy and hold forever? Check out our new “Dividend Legends ” report to learn about two such opportunities.

British American Tobacco Pays a 10% Plus Dividend

British American Tobacco ( NYSE: BTI ) is a United Kingdom-based tobacco company. The company’s most notable cigarette brands in the United States are Newport, Camel, and Natural American Spirit. The company also offers Grizzly chewing tobacco. However, leading tobacco companies know that the industry is changing.

While combustible cigarettes are still driving plenty of revenue for the company, the company needs to make a shift to vapor products. That’s a move British American Tobacco is making pretty successfully. In fact, it’s the company behind the popular vapor brand, Vuse. The company is also moving into the tobacco heating market with its Glo brand and the new oral tobacco category with Velo tobacco pouches.

The company’s leadership in the tobacco industry and ability to roll with the tide as it changes has led to a high level of success. The company is so successful that it’s comfortable paying a significant dividend. Right now, British American Tobacco offers investors a $0.92 quarterly dividend. That works out to a 10.13% dividend yield, making the stock well worth consideration for income investors looking for low-risk opportunities.

OneMain Holdings Pays an 8% Plus Dividend

OneMain Holdings ( NYSE: OMF ) is the parent company of OneMain Financial, a financial services company that has become a household name in the United States. The company’s claim to fame is in lending. It offers credit cards, auto loans, and personal loans to its customers.

Why do borrowers choose to borrow from OneMain Financial? The company offers competitive interest rates, but there are more reasons than that for its popularity. OneMain Financial has provided high-quality financial services to consumers for more than 100 years. The company also has branches across the United States, making borrowing more convenient.

But how does OneMain Holdings stack up in terms of dividends?

The current dividend on the stock is $1.04 quarterly. That works out to an 8.81% dividend yield. It’s also worth noting that OneMain Holdings is a consistent dividend payer that has been increasing dividends since 2021. With such a strong track record of dividend payments and a high yield, this is a stock that’s well worth considering for income investors.

Verizon Communications Pays a 6% Plus Dividend Yield

Verizon Communications ( NYSE: VZ ) is a household name in the United States. The company is most well-known for its wireless telecommunications network. While its wireless network, mobile phone, and internet services are the company’s biggest revenue generators, they’re not all the company does. Verizon also offers services surrounding corporate networking. It’s also a data center and cloud service provider and offers security and managed network services.

As a leader in mobile networking and business solutions, Verizon Communications has built a strong brand that consistently produces meaningful revenue and earnings. That allows the company to share those earnings with investors by way of dividends.

At the moment, the company pays a $0.67 quarterly dividend. That gives Verizon a 6.48% dividend yield. It’s also worth noting that Verizon has been consistently increasing its dividend since 2000, and there are no signs that it will stop doing so ahead.

Enbridge Pays a 6% Plus Dividend Yield

It’s a good idea to look into the energy industry any time you’re looking for strong dividend stocks. Enbridge ( NYSE: ENB ) is an energy company that’s well worth looking into. The Canadian company produces and distributes energy. In fact, it owns and operates the world’s longest pipeline network. Enbridge is also making big moves in the clean energy industry.

All of this seems to be paying off as the company is able to pay meaningful dividends. At the moment, investors are earning $0.67 per share. That works out to a 6.84% dividend yield. Though the company hasn’t consistently increased dividends for any length of time, it has consistently paid dividends for more than three decades.

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