2 Ultra-High-Yield Dividend Stocks to Buy Now

Investors looking for stocks of solid companies that have high dividend yields have plenty of great choices in 2024. Several stalwarts are experiencing weak sales trends over a cautious consumer spending environment. This has sent share prices down and dividend yields up. Shares of Kraft Heinz (KHC 1.86%) and UPS (UPS -1.93%) currently pay yields that are three times the S&P 500 index's average. Here's why investors can expect these stocks to maintain their dividend payments and potentially deliver great returns over the long term. 1. Kraft Heinz Kraft Heinz is a profitable business that benefits from owning several top brands, including Velveeta, Maxwell House, and its namesake Kraft and H.J. Heinz brands. Warren Buffett's Berkshire Hathaway owns 27% of the shares outstanding, which puts shareholders in good company here. The stock has trailed the performance of the market indexes due to weak sales performance. Kraft has seen customers trading down and selecting value items, which is pressuring the top line. But Kraft Heinz still generated $3.3 billion of free cash flow on $26 billion in sales over the last year. This funded nearly $2 billion in dividends to shareholders. Kraft will return to growth, as it was reporting solid single-digit sales growth last year. Management expects a gradual improvement in the second half of the year. It continues to invest in innovation with its food products to drive demand, particularly in the Away From Home business. Long term, its brands should see more growth from emerging markets, where it has been gaining market share. Kraft Heinz currently pays a quarterly dividend of $0.40 per share, bringing the forward dividend yield to 4.44%. The company previously cut its dividend in 2019 to strengthen its finances. But the steady sales from its strong brands and improved free cash flow should keep the dividend safe from further cuts. Moreover, the stock trades at a cheap forward price-to-earnings ratio of 11.6. As Kraft pays down debt and returns to growth, the stock could offer an upside that, combined with a high yield, could potentially lead to handsome returns in the coming years. 2. UPS UPS has increased its dividend for 15 years, which speaks to the lucrative position it holds as a dominant package delivery company. It operates one of the largest transportation fleets in the world. It delivers an average of 22.3 million packages per day, which helped produce $91 billion in revenue in 2023. This consistent sales volume makes for a dependable dividend stock to hold for many years. The stock is down 44% from its previous high. Like Kraft Heinz, UPS is experiencing weak sales as customers choose lower-priced shipping options, such as shifting from air service to ground. This caused revenue to decline 1% year over year in the second quarter. The main reason the stock is down is the pressure on the bottom line. The shift to lower-priced services led to lower revenue per piece, which, along with higher labor costs and other expenses, led to a 29% year-over-year decline in operating profit. However, UPS is still generating healthy levels of free cash flow that fund its dividend. Management expects full-year free cash flow to be around $5.8 billion. It's targeting around $5.4 billion in dividend payments for the full year. The current quarterly dividend is $1.63 per share, so the lower share price has brought the forward yield up to 5.1% -- the highest yield ever for UPS stock. This is a rare opportunity to buy this industry-leading business at a very attractive yield. What's more, investors can expect the stock to eventually climb back to its previous highs, considering the company's opportunities to serve increasing package deliveries due to e-commerce trends.