2 of the Safest Ultra-High-Yield Dividend Stocks to Buy Right Now

When searching for prospective dividend stocks, investors often have to compromise between high yield, dividend track record, dividend growth rate, and dividend affordability.

After all, even if a company generates gobs of free cash flow (FCF) that supports a rapidly rising payout, it can still have a low yield if the stock price does well -- which has been the case with companies like Broadcom. Conversely, some companies have artificially high yields because their stock prices have fallen, thereby boosting yields, which can give the illusion that the company has a solid dividend.

Chevron (NYSE: CVX) and Kimberly Clark (NASDAQ: KMB) are unique because they offer safe dividends and high yields to boost your passive income stream. Here's why both stocks are buys right now.

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The best dividend stock in the oil patch

Given the volatility of the oil and gas industry, you may be apprehensive about betting big on a stock like Chevron. And while there's no denying that Chevron's earnings can fluctuate based on oil and gas prices, it's also impossible to ignore just how impeccable its dividend is.

Chevron yields 4% and has increased its dividend for 37 consecutive years.

In November, Chevron outlined a plan through 2030 to grow FCF and earnings per share by at least 10% when Brent crude oil prices are $70 (they are in the high $60s at the time of this writing). Chevron expects to achieve FCF breakeven at $50 per barrel Brent (the international benchmark), even when factoring in the cost of its dividend and capital expenditures. That's a massive cushion for enduring downturns without compromising upside potential. And even when Brent prices fall below $50, Chevron can lean on its rock-solid balance sheet or cut spending.

Add it all up, and Chevron is a very safe dividend stock to buy now.

This Dividend King is the ideal value stock for long-term income investors

Turning to the consumer staples sector, paper products specialist Kimberly Clark owns iconic brands like Kleenex, Cottonelle, Scott, one of the world's leading diaper brands -- Huggies -- and more. In November, Kimberly Clark announced the blockbuster acquisition of Kenvue, which owns personal care and consumer health brands like Tylenol, Aveeno, Neutrogena, Band-Aid, and Listerine. It aims to complete the acquisition before the end of 2026.

Kimberly Clark is a steal at its current price below $100 a share, which is a 12-year low. The stock is out of favor because growth is at a stall, and margins are under pressure from rising costs and weak pricing power. Kenvue is in a similar boat -- so there will likely be some initial challenges when Kimberly Clark acquires those brands. But Kimberly Clark is optimistic that it can achieve billions in annual cost synergies and grow earnings in the second year following the transaction's close.

The company's dividend remains affordable because Kimberly Clark continues to generate solid FCF -- raking in $1.7 billion in 2025 FCF to fully support $1.66 billion in dividends paid.

On Jan. 27, Kimberly Clark announced an increase in its quarterly dividend from $1.26 to $1.28 per share, which may not seem like much, but it's prudent given the industrywide slowdown. And it also gives the company 54 consecutive years of boosting its payout to retain its status as a Dividend King -- which are companies that have raised their dividends for at least 50 years in a row.

With a 5.2% yield and a dirt cheap 13.1 forward price-to-earnings ratio, Kimberly Clark is one of the best value stocks for generating passive income to buy now.

Daniel Foelber has positions in Kenvue and Kimberly Clark. The Motley Fool has positions in and recommends Chevron and Kenvue. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.