2 Obvious Dividend Stocks to Buy in Abundance

In the wake of the Federal Reserve’s decision to hike its benchmark interest rates 11 times during 2022 and 2023, a lot of investors shifted their focus from dividend stocks to safer options like CDs and T-bills, which offered better yields. However, with the Fed reducing those rates six consecutive times in 2024 and 2025, many are turning back to dividend-paying stocks.

There’s some buzz that Kevin Warsh, possibly the next Fed chair come May, might continue to cut interest rates in a bid to boost lending and stimulate economic growth. If that happens, it may be a good idea to consider investing in these dividend stocks: Energy Transfer (ET +2.68%) and Verizon (VZ 0.93%).

Energy Transfer

Energy Transfer manages over 140,000 miles of pipeline across 44 states, making it one of the leading midstream companies in the U.S. They generate revenue by charging upstream mining companies and downstream refiners “tolls” for transporting resources like natural gas, LNG, NGL, crude oil, and other refined products through their network.

This model is fairly insulated against fluctuating commodity prices since resources flow continuously, providing stable profits. As a master limited partnership (MLP), it mixes returns of capital—tax-advantaged unless the underlying investment is sold—with its own earnings.

The robust nature of Energy Transfer’s business, its tax-efficient setup, and increased energy demands—partly driven by advancements in cloud and AI—make it a compelling investment. With a high forward yield of 7.3% and a valuation of just 12 times forward earnings, it seems quite appealing.

Verizon

Verizon ranks among the leading telecommunications firms in the U.S., serving approximately 146.7 million wireless customers. However, they’ve faced difficulties attracting new wireless subscribers lately as competitors have ramped up their promotional efforts and bundled services. Additionally, the business wireline segment has contracted as businesses move toward cloud-based communication alternatives.

Today’s changes

(-0.93%) $-0.46

current price

$49.00

Key data points

Market capitalization

$209 billion

daily range

$48.63 -$49.42

52 week range

$38.39 -$50.24

volume

1.4M

average volume

31M

gross profit

45.64%

dividend yield

5.53%

To tackle these challenges, Verizon has ramped up its high-growth broadband initiatives, like Home Internet and FiOS Fiber plans, recently adding over 2.2 million new fiber subscribers through the Frontier Communications acquisition. We’re also bundling more wireless and broadband offerings, enhancing our enterprise services with AI tools, and employing AI to improve customer support and network management.

As these strategies start to show results, analysts predict that the company’s adjusted EPS will increase by 4% in 2026 and 7% in 2027. With a forward P/E ratio of just 10x, the stock remains surprisingly affordable, and the forward dividend yield of 5.7% is quite appealing too.