As a pharmaceutical powerhouse, Pfizer combines a diverse drug portfolio with a robust development pipeline, creating multiple pathways for future growth. While the current 443% payout ratio appears elevated due to post-pandemic revenue adjustments, the company’s strong cash flow and deep pipeline reinforce dividend sustainability.

Strategic acquisitions have bolstered Pfizer’s presence in high-value markets, particularly in rare diseases and oncology. Backed by substantial research and development investments, the company continues to advance promising therapies across multiple treatment areas.

AT&T (NYSE: T) is a telecommunications leader, serving millions of wireless subscribers and broadband customers across the United States. The company has demonstrated its commitment to strategic transformation through key moves like the $7.6 billion DirecTV stake sale to TPG.

AT&T shares have risen by a whopping 28.1% year to date. Still, its shares offer a healthy 5.08% dividend yield with a sustainable payout ratio of 63.7%. Trading at 9.53 times forward earnings, AT&T represents a compelling value, compared to both industry peers and the broader S&P 500.

The company’s growth strategy centers on aggressive 5G network expansion, positioning AT&T to capitalize on next-generation wireless opportunities. Additionally, its strategic fiber deployment targets high-potential markets with minimal competition, enhancing potential returns on investment.

Philip Morris International (NYSE: PM) markets Marlboro and other cigarette brands exclusively in international markets. The stock offers investors a 4.54% dividend yield and trades at a forward price-to-earnings ratio (P/E) of 17.4. The one drawback is the tobacco giant does sport an elevated payout ratio of 92%.

The company’s broad geographic footprint provides natural diversification across markets with different consumption patterns. Since acquiring U.S. rights to iQOS in 2022, the company has expanded its presence in the U.S., the world’s largest market for smoke-free products.

The company’s strategic pivot toward smoke-free alternatives has shown strong momentum in key regions, while its established presence in emerging economies helps insulate the business from localized economic pressures.

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George Budwell has positions in AT&T, Pfizer, and Philip Morris International. The Motley Fool has positions in and recommends Pfizer. The Motley Fool recommends British American Tobacco P.l.c. and Philip Morris International and recommends the following options: long January 2026 $40 calls on British American Tobacco and short January 2026 $40 puts on British American Tobacco. The Motley Fool has a disclosure policy.

5 High-Yield Dividend Stocks to Buy Without Hesitation was originally published by The Motley Fool