August 2025 – 3 Hidden Stocks With Amazing Profit And High Yields
Finding companies with high dividend yields is easy.
Just use a free screener on Yahoo Finance or another financial site, and you can search for companies with high dividend yields.
However, high yields aren’t everything.
Especially if a company doesn’t make enough money to keep paying such high dividends.
The last thing you want is a dividend cut.
There are many different metrics to use to see whether a company can keep paying its dividends.
But one unconventional metric is profit margin.
Profit margin is the income a company makes divided by its revenue.
Profit margin measures how well a company turns a profit for every sale it makes.
Generally speaking, a higher profit margin is better.
Companies need a lot of income to keep those dividends flowing into our accounts.
And these companies have really high profit margins, along with some amazing dividends.
Altria Group (ticker: MO) is one of the largest cigarette manufacturers in the world.
But Altria is moving into other areas besides cigarettes.
Altria also owns a stake in cannabis and vaping products.
Altria had an astounding 43% profit margin in 2024, one of the highest in the entire S&P 500.
The 2024 profit margin wasn’t a fluke either.
Altria averaged a 30% profit margin over the last decade.
Plus, Altria’s 6.3% dividend yield isn’t too shabby either.
And Altria has increased its dividend for more than 50 consecutive years!
Western Union (ticker: WU), a money transfer and payment company, opened its doors before the Civil War.
The company is looking to pivot away from cash transfers and into digital transfers.
People aren’t sure Western Union will be able to make the shift work.
Western Union’s stock price is down almost 50% over the last year.
But the price drop is a major overreaction.
Last year, Western Union’s profit margin was over 20%, which is one of the highest the company has ever achieved.
And the drop in price raised Western Union’s dividend yield to 11%.
Its dividend yield has never been higher!
But there’s more to be excited about.
Western Union’s price-to-earnings ratio is only 3.1x, the lowest in the entire Russell 1000 index.
It’s a risky bet, but the dividend yield, profitability, and cheapness of Western Union are too good to pass up.
Last up is apparel company, Buckle, Inc. (ticker: BKE).
Buckle is a clothing store selling jeans, shoes, tops, and accessories.
It has over 400 stores in every state outside of New England and Hawaii.
Buckle’s 16% profit margin doesn’t seem very high, especially compared to Altria Group and Western Union.
However, the apparel industry isn’t known for high profit margins.
And Buckle’s 16% profit margin is almost 8x the industry average.
Buckle pays $0.35 every quarter, which isn’t a lot for a company trading around $55 per share.
But the company has been paying a $2.85 special dividend every January, which gives Buckle a really nice 7% dividend yield.
At the end of the day, a high dividend only works if a company makes enough money to afford the payments.
What other dividend stocks are you looking at right now?
Michael Jennings, Editor
Dividend Stocks Research
Category: Dividend Stocks To Buy?, Dividend Yield
