Dividends are the unsung heroes when it comes to making money and building wealth in the stock market. They may not be as sexy or draw the attention that high-flying growth stocks do, but they can be just as rewarding, especially over time.

If you're looking for dividend stocks to add to your portfolio, you might want to consider the following two companies. Each has a high dividend yield and each is a leader in industries that are likely to be around for the long haul. Investing $500 into each could net you about $65 in annual income at their current yields.

1. Altria Group

Tobacco giant Altria Group (NYSE: MO) has been one of the highest-yielding dividend stocks in the S&P 500 for quite a while. Its quarterly dividend is $1.02 per share and it offers a forward yield of over 8%. For perspective, the average dividend yield of the S&P 500 stands just above 1.3%.

When Altria announced a dividend increase in August, it marked the 55th straight year the company has raised its payout. It is one of only 54 companies on the stock market that has reached the Dividend King status, putting it in elite company when considering the thousands of companies on U.S. stock exchanges.

It's one thing to have an attractive dividend. But it's even more impressive when you manage to keep increasing an attractive dividend, which Altria has done -- almost doubling it in the past decade.

Altria has maintained a stronghold in the cigarette industry for a while. Smoking rates have been steadily declining in the U.S., affecting volume, but the pricing power that it can exert has allowed it to offset this decline and keep its financials healthy.

The company has to find viable smoke-free options to maintain its leadership position in the long term. It failed with its $12.8 billion Juul investment (putting it lightly), but its recent vaping venture, NJOY, has been making positive strides. In the second quarter, NJOY consumables shipment volumes increased by 14.7% to 12.5 million units, and NJOY devices' shipment volume jumped by 80% to 1.8 million units. This brought the totals to 23.4 million and 2.8 million, respectively, in the first half of 2024.

Cigarettes will be the mainstay of Altria's business for the foreseeable future. However, it's encouraging to see it making the investments needed for long-term success. In the meantime, investors can enjoy the company's lucrative dividend, which should continue increasing for several years to come.

2. AT&T

AT&T (NYSE: T) is getting accolades from investors for its improved financial picture after some turbulent years caused by a misguided decision to get involved in the media and entertainment industry. The company took its lumps, sold off its underperforming assets, and returned to its telecom roots, and the results have been paying off. The stock is up over 26% this year (as of Oct. 21), marking its best stretch in a while.

Even after slashing its dividend by nearly half in the spring of 2022, AT&T remains one of the more attractive dividends in the S&P 500. Its quarterly payout is $0.28, with a forward yield of just over 5%.

Because of its high payout, investors have had concerns that AT&T might have stretched itself too thin to maintain its dividend. However, recent financial performance shows those concerns may have been overblown.

Not only has AT&T managed to knock off a huge chunk of its long-term debt over the past few years, but it has also generated encouraging free cash flow (which is where dividend payouts should ideally come from).

In its last quarter, AT&T generated $4.6 billion in free cash flow while paying out around $2.1 billion in dividends. That payout ratio is lower than what the company has historically had.

For growth, the company will lean on its fiber business. It won't generate the revenue its postpaid phone business will, but it's an area that is still underpenetrated and represents the next phase in providing high-speed internet and broadband connectivity.

AT&T hasn't increased its dividend since it cut it a couple of years back, but at the company's current pace, I'm sure it's not off the table in the relatively near future. When (or if) this happens remains to be seen, but its current dividend is still one that investors can appreciate.

Should you invest $1,000 in Altria Group right now?

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Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The Smartest Dividend Stocks to Buy With $1,000 Right Now was originally published by The Motley Fool