Numerous studies indicate that the Social Security Old-Age and Survivors Insurance (OASI) trust fund is projected to run out of reserves in late 2032; while the program is not expected to go bankrupt or disappear, current taxpayers will still fund a large portion of the payments. Some project that payments could fall to 78% of a recipient’s current payment. That means every $1,000 in payments could be cut to $780 if Congress does not intervene. The Social Security Administration says that if combined with the Disability Insurance trust fund, the depletion date is extended to 2034, when 83% of benefits would remain payable. The bottom line is that Congress will likely wait until the bitter end to fix things, as it has in the past.
For the youngest Baby Boomers, those born in 1964, it may make sense to claim Social Security at 62 before they end your ability to do so. While your payments could be up to 30% lower than waiting until full retirement age of 67, you will receive five full years of payments, and for high-income earners, that will still be significant. Plus, when you place that money in five high-yield dividend giants and reinvest the dividends, you will likely earn more than enough to cover the difference between the payment at 62 and the payment at 67.
Here are our five high-yield dividend giants. All pay at least a 6% dividend and have paid and raised their dividends for decades, in some cases, 50 years. This is not a plan for those who will need Social Security as their sole retirement income, and there are rules about how much you can earn when you receive Social Security early. Your tax advisor can help with that. But if you have a sizable nest egg and are generating passive income from investments or real estate, this is a plan to consider, as passive income does not count against what you can earn when you take Social Security at 62. All five of our high-yield dividend giants are rated Buy at top Wall Street firms that we cover.
Altria
Altria (NYSE:MO | MO Price Prediction) is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products. This tobacco stock offers value investors a solid entry point and a 6.42% dividend. Altria manufactures and sells smokable and oral tobacco products in the United States primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
The company operates in a highly inelastic industry. This means that consumer demand remains consistent regardless of broader economic downturns, allowing Altria to generate robust cash flow and cover its large payout continuously. Plus, Anheuser-Busch is the largest brewing company in the United States, and its parent company, Anheuser-Busch InBev (NYSE:BUD), is the largest brewing company in the world.
Kiplinger notes that after it was removed in 2008, shareholders who held through the transition saw their shares surge by more than 150% in the years following, excluding dividends.
The company primarily sells cigarettes under the Marlboro brand, as well as:
- Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
- Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
- on! Oral nicotine pouches
- e-vapor products under the NJOY ACE brand
Altria used to own over 10% of Anheuser-Busch InBev, the world’s largest brewer. In March of 2024, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.
Altria increased its quarterly dividend in the fall of 2025 by 3.9%, from $1.02 to $1.06 per share, marking its 57th consecutive dividend increase.
UBS has a Buy rating with a $79 target price.
Ares Capital
The company specializes in providing financing solutions for the middle market, and with 7 analysts rating it a Buy and a 9.71% dividend yield, it’s a solid idea now. This company is a high-yielding business development company (BDC). Ares Capital (NASDAQ:ARCC) specializes in acquisitions, recapitalizations, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions for middle-market companies.
Widely considered one of the highest-quality BDCs due to its massive scale and defensive track record through multiple economic cycles, the company has a long history of regular payouts and supplemental distributions since its 2004 market entry and is America’s largest publicly traded BDC. It also provides growth capital and general refinancing. It prefers to invest in companies in basic and growth manufacturing, business services, consumer products, healthcare products and services, and information technology.
The fund will also consider investments in industries such as:
- Restaurants
- Retail
- Oil and gas
- Technology
It focuses on investments in the Northeast, Mid-Atlantic, Southeast, and Southwest regions from its New York office; the Midwest region from its Chicago office; and the Western region from its Los Angeles office.
The fund typically invests between $20 million and $200 million, with a maximum of $400 million, in companies with annual EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million. The fund invests through:
- Revolvers
- First-lien loans
- Warrants
- Unitranche structures
- Second-lien loans
- Mezzanine debt
- Private high yield
- Junior Capital
- Subordinated debt
- Non-control preferred and common equity
The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically acquires stressed and discounted debt positions.
Ares Capital prefers to act as an agent and lead transactions in which it invests. The fund also seeks board representation in its portfolio companies.
Truist Financial has a Buy rating with a $21 price target.
Energy Transfer
Energy Transfer (NYSE:ET) is one of North America’s largest and most diversified midstream energy companies. This top master limited partnership is a solid option for investors seeking energy exposure and income, paying a 6.35% distribution yield. Energy Transfer owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint across all major domestic production basins. The company relies primarily on volume-based tolling fees rather than the actual spot price of oil or gas, so its revenue stream is insulated from daily commodity market pricing and volatility.
Core operations include:
- Complementary natural gas midstream, intrastate, and interstate transportation and storage assets
- Crude oil, natural gas liquids (NGL), and refined product transportation and terminalling assets
- NGL fractionation
- Various acquisition and marketing assets
Following the acquisition of Enable Partners in December 2021, Energy Transfer owns and operates over 114,000 miles of pipelines and related assets in 41 states, spanning all major U.S. producing regions and markets. This further solidifies its leadership position in the midstream sector.
Through its ownership of Energy Transfer Operating, formerly known as Energy Transfer Partners, the company also owns Lake Charles LNG; the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco (NYSE:SUN), and the public partner interests and 39.7 million standard units of USA Compression Partners (NYSE:USAC).
Truist Financial has a Buy rating with a $25 price objective.
General Mills
With products that never go out of style and a strong 6.42% dividend yield, General Mills (NYSE:GIS) is a rebound story that will reward patient investors. This global manufacturer and marketer of branded consumer foods trades at a cheap 11.4 times estimated 2026 earnings with a resilient 58% payout ratio.
Its segments include:
- North America Retail
- International
- North America Pet
- North America Foodservice
The North America Retail segment includes grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar, and discount chains, convenience stores, and e-commerce grocery providers. The International segment consists of retail and foodservice businesses outside the United States and Canada. Its product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes, and shelf-stable vegetables.
The North America Pet segment includes pet food products sold in the United States and Canada in national pet superstore chains, e-commerce retailers, and grocery stores. And the North America Foodservice segment product categories include ready-to-eat cereals, snacks, and baking mixes.
Piper Sandler has an Overweight rating, with a $41 target price.
UPS
The delivery giant announced last year that it would cut its shipping volume for e-commerce giant Amazon by more than 50% by the second half of 2026. United Parcel Service (NYSE:UPS) remains one of the best ideas among the top dividend picks, with a dividend yield now at 6.43%. The package delivery company faced headwinds from discontinuing its Amazon business and from expectations of slower economic growth. The company said the move is part of UPS’s broader strategy to focus on more profitable, less risky business segments.
While UPS has never trimmed its dividend since listing in 1999, that track record offers reassurance rather than a guarantee, and while growth may pause, a cut remains off the table for now.
UPS provides integrated logistics solutions to customers in more than 200 countries and territories. Its segments include:
- U.S. Domestic Package
- International Package
The U.S. Domestic Package segment offers a range of domestic air and ground package transportation services within the United States. Its air portfolio offers time-definite, same-day, next-day, two-day, and three-day delivery alternatives as well as air cargo services. UPS’s ground network enables customers to ship using its day-definite ground service. UPS SurePost provides residential ground service for customers with non-urgent, lightweight residential shipments.
The International Package segment comprises its small package operations in Europe, the Indian subcontinent, the Middle East and Africa, Canada, Latin America, and Asia. It offers a selection of guaranteed day- and time-definite international shipping services. Its supply chain solutions include forwarding, logistics, and other services.
Stephens has an Overweight rating and a $130 target price.
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