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Boomers Are Just Now Finding 5 Dividend Gems Yielding 7% and More

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  Published in Stocks and Investing on Monday, September 29th 2025 at 4:25 GMT by 24/7 Wall St
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Retirees Spot a New Class of Dividend “Gems” Yielding Over 7%

In a market where low‑interest rates have made it harder for retirees to find reliable income streams, a new group of dividend‑heavy stocks is emerging as a beacon for those who rely on regular payouts. An article published by Wall Street 247 on September 11, 2025, titled “Boomers are Just Now Finding 5 Dividend Gems Yielding 7% and More,” outlines five companies that offer yields well above the sector average while still maintaining a solid track record of dividend growth. The piece presents a compelling case for those who want to combine a stable, income‑generating portfolio with the potential for capital appreciation.

The Five Dividend Stars

1. Altria Group Inc. (MO) – Yield: 8.3%
   Altria has long been a favorite among dividend investors, thanks to its consistent dividend payout and a history of dividend increases dating back more than two decades. The article highlights the company’s ability to sustain its high yield through a combination of a strong brand portfolio (including the Marlboro cigarette line) and a disciplined capital allocation strategy. Altria’s recent share buyback program is also noted as a positive driver for shareholder value.

2. AT&T Inc. (T) – Yield: 7.5%
   AT&T’s yield has surged in recent years, largely due to its focus on content and media assets, coupled with a sizable portfolio of high‑yielding consumer telecommunications contracts. The article cites AT&T’s recent restructuring efforts, which aim to eliminate legacy debt and redirect capital toward 5G expansion, potentially increasing future cash flows and supporting dividend sustainability.

3. Exxon Mobil Corp. (XOM) – Yield: 7.0%
   Despite the volatility in the energy sector, Exxon remains a top pick for dividend‑heavy portfolios. The piece outlines Exxon’s commitment to a “capital discipline” framework that balances investment in low‑carbon technologies with a robust dividend payout. Analysts cited in the article point out that Exxon’s integrated upstream‑downstream operations provide a stable revenue base, making it a relatively safe choice for income seekers.

4. AbbVie Inc. (ABBV) – Yield: 6.8%
   AbbVie’s yield is noteworthy because the pharmaceutical company has historically maintained a 10%+ dividend payout ratio and has increased its dividend for 17 straight years. The article discusses how AbbVie’s robust pipeline—particularly its blockbuster drug Humira—provides a strong cash‑flow cushion. It also emphasizes the company’s commitment to shareholder returns through dividends and share buybacks.

5. Public Storage (PSA) – Yield: 6.5%
   A notable inclusion in the list is Public Storage, the world’s largest self‑storage operator. The article points out that the company’s dividend yield sits just below 7% but offers a compelling combination of high occupancy rates, rising rental rates, and a low debt profile. Analysts in the article argue that the company’s diversified geographic presence and continuous capital improvements support its dividend-paying track record.

Why These Stocks Appeal to Boomers

The article underscores three primary reasons why these five “dividend gems” resonate with Baby Boomers and older retirees:

1. Higher Yields in a Low‑Rate Environment
   With U.S. Treasury yields hovering around 1.2% and corporate bond yields barely above 3%, high‑yield equities are attractive for those looking for real income. The featured stocks offer yields that beat most municipal and corporate bonds while still presenting a manageable level of risk.

2. Dividend Growth Histories
   Many of the companies boast a long track record of increasing dividends. The article stresses that a history of dividend growth is a strong indicator of a company’s ability to sustain payouts even in challenging economic climates. This attribute is especially appealing to retirees who prioritize predictable income streams.

3. Defensive Business Models
   From consumer staples (Altria) to essential utilities (Public Storage) and foundational telecommunications (AT&T), the sector mix is intentionally defensive. The article notes that such companies tend to weather economic downturns better than growth‑oriented peers, offering retirees an extra layer of security.

Risks and Caveats

While the piece is optimistic, it also provides a balanced view by acknowledging potential risks:

• Regulatory Pressure – Altria faces ongoing scrutiny from the U.S. Federal Trade Commission and the U.S. Treasury over its “packaging and pricing” practices, which could impact profitability and, consequently, dividends.

• Interest Rate Sensitivity – AT&T’s high yield is partly driven by its debt profile. Rising interest rates could squeeze margins and erode the company’s ability to sustain its current payout levels.

• Commodity Price Volatility – Exxon Mobil’s cash flow is exposed to oil price swings. A prolonged downturn in crude prices could reduce dividends unless offset by cost‑cutting measures.

• Patent Expirations – AbbVie’s reliance on Humira means it is vulnerable to the drug’s patent expiry and the potential entry of generic competitors, which could affect cash flow and dividend sustainability.

• Capital Expenditure – Public Storage’s growth strategy involves significant capital spending for new facilities. If returns on these investments lag, dividend payouts could face downward pressure.

How the Article Sources Its Data

The article pulls its yield numbers and historical dividend data from reputable financial platforms such as Yahoo Finance, Dividend.com, and the companies’ own Investor Relations pages. It references the latest earnings calls and press releases, providing readers with up‑to‑date insights into each company’s financial health. The piece also links to external analyst reports—most notably from Morningstar and Seeking Alpha—that corroborate the dividend stability and growth narratives presented.

Bottom Line for Income‑Focused Investors

According to Wall Street 247, the current market conditions—characterized by persistently low interest rates, inflationary pressures, and shifting consumer habits—make high‑yield dividend stocks a compelling option for retirees and income‑seeking investors. While no investment is without risk, the five stocks highlighted in the article have demonstrated a proven track record of paying and increasing dividends, coupled with robust business fundamentals that help cushion against market volatility.

For Boomers who are “just now finding 5 dividend gems yielding 7% and more,” the key takeaway is that a carefully curated portfolio of these dividend‑heavy, defensive‑sector companies can offer a reliable income stream without exposing investors to excessive risk. The article concludes that, when combined with prudent diversification and an eye on macroeconomic trends, these stocks could serve as cornerstone holdings in a retirement portfolio aimed at preserving capital while generating steady cash flow.