High-yielding dividend stocks often raise investor concerns about sustainability. However, United Parcel Service (UPS) and Verizon Communications present compelling opportunities, with yields exceeding 5%. While high yields can indicate risk, a stock's price decline may inflate its yield, not necessarily signal an unsustainable payout. Both companies have shown promising recent performance, suggesting the dividends are secure.

UPS, with a yield of 5.6%, significantly outperforms the S&P 500 average. The logistics giant's stock has risen 19% this year, following strong fourth-quarter earnings that beat analyst expectations. The company's full-year revenue guidance was also nearly $2 billion higher than anticipated. While its payout ratio is at 100%, UPS's focus on high-value deliveries and margin improvements should bring it down.

Verizon offers a 6% yield, even higher than UPS. Its share price has climbed 15% this year, reflecting solid quarterly results. Verizon's wireless subscriber growth hit a six-year high. For 2026, the company projects adjusted earnings per share of at least $4.90, exceeding analysts' expectations of $4.76. Verizon's payout ratio is around 50%, indicating a safe dividend.

Both companies' recent performance and strategic initiatives offer a positive outlook. Although the article does not recommend either, it does state that the Motley Fool Stock Advisor did not include UPS in their list of the 10 best stocks to buy now. These stocks could produce monster returns