2 Dividend Stocks That Pay More Than 6% That Retirees Can Safely Buy and Hold for Years

Collecting an above-average dividend payment can sometimes come with risks. High-yielding stocks can be due for cuts to their payouts if a company's underlying financials aren't strong enough to support its dividend payments. But that doesn't mean all high-yielding stocks are dangerous investments.

Two good examples of stocks that pay more than 6% and can still be ideal long-term options for retirees are Pfizer (NYSE: PFE) and Verizon Communications (NYSE: VZ). Although their yields are high, these stocks are not as risky as they may appear to be. Here's why.

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A bearish outlook for the future has resulted in Pfizer's stock price tumbling more than 10% this year, despite what has generally been a strong year for the markets. The top healthcare stock is trading around its 52-week low, and its yield is incredibly high at around 6.8%.

Protecting that dividend is a priority for CEO Albert Bourla, who earlier this year referred to the payout as a "sacred cow" for the business, recognizing the importance it has for investors who rely on the recurring payment. Pfizer has been making dividend payments for 344 consecutive quarters, and it has been one of the most stable income stocks to own in the healthcare industry.

The company recently raised its guidance for 2024 in light of strong earnings numbers. However, investors remain worried about the future, including how it will deal with a new U.S. administration and the possible implications that changing regulations may have for its operations, and how it will grow as it faces multiple patent cliffs.

The reason I'm not worried about Pfizer is that regardless of who is in office, there's going to be a need for constant and ongoing innovation in healthcare. Pfizer has been a top name in that regard for decades. Its acquisition of oncology company Seagen last year highlighted its aggressive growth strategy, as the move cost Pfizer $43 billion. It has also pursued smaller companies over the years in a bid to bolster its pipeline and strengthen its growth prospects.

As for patent cliffs, they are something that every healthcare company with a top drug will have to worry about at some point. But by focusing on expanding and diversifying its operations, Pfizer is in excellent shape to overcome those challenges. Bourla previously said that by 2030, the company may add up to $25 billion in revenue from new drugs and acquisitions, which will help offset losses due to generics.