Ultra-high-yield dividend stocks can be superb additions to a well-rounded portfolio. However, there are considerable risks associated with most stocks offering yields above the 7% mark. An elevated yield can be red flag indicating that a company is under financial duress or facing an important new competitive threat. As a result, investors should always carefully vet unusually rich income plays before hitting the buy button. 

Which ultra-high-yield dividend stocks stand out as compelling buys right now? Verizon Communications (NYSE: VZ) and Altria (NYSE: MO) are two stocks with yields well north of 7% presently. Better still, both companies boast strong free cash flow, outstanding track records of rewarding loyal shareholders with regular dividend increases, and stable long-term outlooks.

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Source Fool.com