Ultra-high-yield stocks, or stocks with yields exceeding 7% on an annualized basis, have a rich tradition of generating market-beating returns. That said, there is an important caveat associated with this group of equities. Namely, a scorchingly high yield can also be a sign that a company is dealing with a major headwind. That's not always the case, but investors should always exercise caution when shopping for an ultra-high-yield dividend stock. 

Which stocks with mouthwatering yields are worth buying right now? Although cigarettes represent a shrinking industry from a sales volume standpoint, the tobacco companies Altria (NYSE: MO) and Vector Group (NYSE: VGR) still screen as incredible passive income plays for a few reasons. To wit, both companies offer extraordinarily generous yields (9.32% and 7.7%, respectively), attractive valuations, and robust free cash flows. Read on to find out more about these two top ultra-high-yield dividend stocks.

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Source Fool.com