Dividend investors tend to look for stocks that offer relatively high dividend yields compared to others in the market. However, a high yield may not always be a good sign. It can sometimes indicate that a company's stock price has dropped due to poor financial results, or that the current market expectation is that the current dividend payout is unsustainable. Therefore, in addition to the dividend yield, an examination of the company fundamentals is necessary.
In this article, we focus on high yielding US stocks, specifically stocks from the S&P 500. The S&P 500 is an index that tracks the performance of 500 of the largest publicly traded companies in the United States. A full list of all S&P 500 company yields can be found on the S&P 500 dividend yields page. As these companies are more established, the dividend payout may be more sustainable and perhaps continue to grow in the future. We list below the companies which have the highest yields in the S&P 500 and also have unbroken and increasing annual dividends for at least the previous ten years. This criteria can be a good initial filter for identifying high yield dividend stocks.
| Ticker | LYB | Sector | Specialty Chemicals |
|---|---|---|---|
| Exchange | NYSE | Dividend Yield | 9.16% |
| Dividend Frequency | Quarterly | Current Price | $58.52 |
LyondellBasell Industries NV (LYB) is a multinational chemical company which produces a broad range of chemicals that serve markets like packaging, automotive, and consumer goods. It has grown the annual dividend for the past 13 years, and currently has a dividend yield of 9.16%. Like many US companies, it pays four dividends per year of equal amount.
| Ticker | ARE | Sector | REIT - Office |
|---|---|---|---|
| Exchange | NYSE | Dividend Yield | 7.26% |
| Dividend Frequency | Quarterly | Current Price | $72.18 |
Alexandria Real Estate Equities Inc (ARE) is a life science real estate investment trust (REIT) that owns, operates, and develops life science and technology properties. It also has a venture capital platform which provides strategic capital to life science companies. It listed on the New York Stock Exchange in 1997, and has been a consistent dividend payer distributing four quarterly dividends each year. It did reduce the annual dividend in 2010, but has since grown the annual dividend for the past 15 years at a compound annual growth rate of about 9.20%. Its current annual dividend yield is 7.26%.
| Ticker | PFE | Sector | Drug Manufacturers - General |
|---|---|---|---|
| Exchange | NYSE | Dividend Yield | 7.23% |
| Dividend Frequency | Quarterly | Current Price | $23.52 |
Pfizer (PFE) is a multinational pharmaceutical company that focuses on the discovery, development, and production of medicines, vaccines, and consumer health products. It has a long streak of paying dividends, having paid a quarterly dividend for over 345 consecutive quarters. Pfizer cut its annual dividend in 2009, but since then it has grown the annual dividend for the past 15 years at a compound annual growth rate of about 5.80%. Its current annual yield is 7.23%.
| Ticker | MO | Sector | Tobacco |
|---|---|---|---|
| Exchange | NYSE | Dividend Yield | 6.81% |
| Dividend Frequency | Quarterly | Current Price | $59.9 |
Altria Group (MO) is a company that provides tobacco products with a broad portfolio in both combustible and smoke-free products. It has a strong track record of uninterrupted and growing annual dividends, and has a compound annual dividend growth rate of just over 7.60% over the past 15 years. While the company remains a strong dividend payer, with a current annual dividend yield of 6.81%, its drawbacks include regulatory and litigation risks with regards its tobacco products.
| Ticker | UPS | Sector | Integrated Freight & Logistics |
|---|---|---|---|
| Exchange | NYSE | Dividend Yield | 6.70% |
| Dividend Frequency | Quarterly | Current Price | $97.55 |
United Parcel Service Inc (UPS) is a global package delivery company which listed on the New York Stock Exchange in 1999. It has paid a dividend every year since listing, and has grown the annual dividend for over 15 years. Although its current annual yield is 6.70%, the annual dividend growth rate has considerably slowed over the past few years to around 0.5%.
| Ticker | AES | Sector | Utilities - Diversified |
|---|---|---|---|
| Exchange | NYSE | Dividend Yield | 6.20% |
| Dividend Frequency | Quarterly | Current Price | $11.24 |
AES Corporation (AES) is a global power company that generates, transmits, and distributes electricity. Although it listed on the New York Stock Exchange in 1991, it only started to pay a dividend to shareholders in 2012. Since then, it has paid regular quarterly dividends and increased the annual dividend every year. Its current annual dividend yield is 6.20%.
| Ticker | VZ | Sector | Telecom Services |
|---|---|---|---|
| Exchange | NYSE | Dividend Yield | 6.10% |
| Dividend Frequency | Quarterly | Current Price | $44.22 |
Verizon Communications Inc (VZ) is a telecommunications company that provides wireless and wireline communications services such as mobile phone services and internet access for businesses and consumers. It has paid a dividend every year since its formation and listing as Bell Atlantic in 1984. Its dividend growth over the years has been relatively modest with a 10 and 20 year compound annual growth rate of just over 2.10%. However, it is still appealing to income-focused investors, as it has continually distributed dividends without any dividend cuts, even during periods of economic uncertainty. Its current annual dividend yield is 6.10%.
| Ticker | BEN | Sector | Asset Management |
|---|---|---|---|
| Exchange | NYSE | Dividend Yield | 5.68% |
| Dividend Frequency | Quarterly | Current Price | $22.17 |
Franklin Resources Inc (BEN) is a global investment management company which provides investment management and related services to retail investors, institutions, and high-net-worth individuals. It has been a reliable and long-standing dividend payer with a strong record of annual increases for many decades. Its current annual yield is 5.68%.
| Ticker | O | Sector | REIT - Retail |
|---|---|---|---|
| Exchange | NYSE | Dividend Yield | 5.66% |
| Dividend Frequency | Monthly | Current Price | $56.2 |
Realty Income Corporation (O) is a real estate investment trust (REIT) that invests in commercial properties, primarily single-tenant, free-standing properties leased to clients under long-term net lease agreements. It is a popular dividend stock due to its monthly dividend payout. In fact, it is one of only two monthly dividend paying stocks in the S&P 500. It has continuously increased its dividend every year since listing on the New York Stock Exchange in 1994. Its current annual yield is 5.66%.
| Ticker | EIX | Sector | Utilities - Regulated Electric |
|---|---|---|---|
| Exchange | NYSE | Dividend Yield | 5.51% |
| Dividend Frequency | Quarterly | Current Price | $58.31 |
Edison International (EIX) is a company that generates and distributes electric power. It also provides energy services and technologies, including renewable energy. It has been a reliable dividend payer, paying uninterrupted and growing dividends for over 20 years. It has grown the annual dividend at an average rate of about 5% over the previous 5 years, and it currently has an annual dividend yield of 5.51%.