As investors in the U.S. continue to navigate a volatile economic environment marked by inflation, interest rate uncertainty, and global instability, many are shifting focus toward more stable, income-generating opportunities.
High yield stocks – particularly dividend stocks with strong fundamentals are increasingly appealing for those seeking both reliable income and long-term growth potential.
This October, two standout dividend stocks offering exceptional yields and compelling value propositions are Pfizer (PFE) and United Parcel Service (UPS).
With both companies trading at significant discounts and offering yields far above the market average, investors may want to take a closer look before these bargains disappear.
Pfizer: A 7.2% Yield with Long-Term Growth Catalysts
Pfizer (PFE), the pharmaceutical giant behind some of the most successful COVID-19 treatments, is currently yielding an impressive 7.24%, over six times the average yield of the S&P 500.
Despite this attractive payout, Pfizer’s stock has slumped to a 13-year low, primarily due to the sharp drop in revenue from its COVID-19 vaccine, Comirnaty, and oral treatment, Paxlovid.
Sales from these two blockbuster drugs soared to over $56 billion in 2022 at the height of the pandemic. However, with COVID-19 no longer driving global urgency, revenue from these treatments fell to just $11 billion in 2024 and is projected to decline further.
While that may sound like a setback, it’s important to note that Pfizer wasn’t generating any COVID-19 revenue before 2020.
When factoring in new drugs and its core portfolio, the company’s total sales are still up over 50% compared to 2020.
Another major growth lever for Pfizer is its acquisition of Seagen, a leading cancer drug developer, for $43 billion in late 2023.
This strategic move significantly boosts Pfizer’s oncology pipeline an area of high-margin growth – especially as cancer screenings and diagnostics continue to improve.
From a valuation perspective, Pfizer is a steal. The stock trades at just 7.5 times forward earnings – 25% below its five-year average.
For income investors seeking high yield stocks with a solid foundation and long-term growth potential, Pfizer is a top contender.
Also See: This Dividend Stock Is Practically Screaming ‘Buy Me’ – Even With Just $1,000
United Parcel Service (UPS): A Smart Pivot with a 7.6% Dividend
United Parcel Service (UPS), the iconic logistics provider, is another compelling dividend stock to consider. Shares have fallen 34% in 2025, massively underperforming the S&P 500.
The sharp decline followed UPS’s announcement that it plans to cut back shipments from Amazon, the world’s largest e-commerce company by over 50% starting in the second half of 2026.
While reducing its Amazon volume may hurt short-term revenue, UPS is intentionally pivoting to more profitable business segments, including small and medium-sized enterprises and temperature-sensitive healthcare shipments.
These markets offer higher margins and less volatility.
UPS’s brand value and established infrastructure also offer a strong moat. With substantial capital requirements for entry into the logistics industry, competition is limited.
The company’s massive fleet of vehicles and aircraft, along with its global delivery network, reinforce its dominance in the sector.
Despite market skepticism, UPS remains committed to its dividend. The current payout supports a 7.84% yield, one of the highest in the logistics and transportation space.
Moreover, UPS trades at less than 12 times forward earnings – a 27% discount to its five-year average—making it one of the more undervalued high yield stocks on the market.
Also See: 2 Dividend Growth Stocks Beating Inflation and Growing Payouts
Bottom Line: Income and Value in One Package
For U.S. investors seeking high yield dividend stocks, both Pfizer and UPS offer a rare combination of strong yields, undervalued share prices, and strategic growth plans.
While short-term headwinds have weighed on their share prices, the long-term outlook remains favorable for both companies.
October may be the perfect time to consider adding these dividend stocks to your portfolio before the broader market catches on to their true value.
