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10 Highest Dividend Paying Stocks in the S&P 500

Ten years after the lows of the Great Recession, much has changed on both Wall Street and Main Street. But one frustrating fact of life that’s remained stubbornly the same has been the age of low interest rates. With Treasury's yielding less than 3 percent, high dividend stocks pack far more appeal than they used to. Of course, high yields can also often be associated with struggling businesses in over their heads, and high yields alone do not a good stock make. In order to focus on higher-quality companies, here’s a look at 10 of the highest dividend paying stocks in the S&P 500, in ascending order.
John Divine, Staff Writer
David Beckham has signed an advertising deal to endorse Sharpie, an autograph-marker used by US celebrities.
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#10: Newell Brands (Nasdaq: NWL)
A leading retailer of everyday household products, Newell Brands is one of the great under-the-radar, consumer-facing companies in the U.S. Brands like Crock-Pot, Mr. Coffee, Rubbermaid, Marmot, Elmer’s, Paper Mate and Sharpie all reside under its umbrella. Still, the reason NWL is one of the highest dividend paying stocks in the S&P has more to do with its multiyear sell-off than its devotion to income investors. This year will be crucial if Newell Brands is to execute a successful turnaround, as NWL recently sold its Jostens and Pure Fishing brands for $2.5 billion, vowing to focus on consumer goods and higher margins.
Dividend yield: 5.8 percent
Market capitalization: $7.6 billion
KIEV, UKRAINE - 2019/02/14: A pack of Philip Morris International Inc. Marlboro Red cigarettes seen in a Tobacco Store.
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#9: Altria Group (MO)
Altria is always among the high dividend stocks, due to the smooth, predictable and low-growth nature of its business: tobacco. Always fraught with regulatory hurdles and the threat of ever-increasing taxation – plus the increasingly health-conscious consumer – Altria would be in big trouble if it didn’t sell one of the most addictive substances in the world. With brands like Marlboro, Black & Mild, Copenhagen and Skoal, its customers also happen to be extremely loyal to the brand. Analysts only expect low single-digit sales growth over the next few years, but that’s fine for many conservative investors. MO pays roughly 80 percent of profits out as dividends.
Dividend yield: 6.1 percent
Market capitalization: $99.2 billion
TORONTO, ONTARIO, CANADA - 2016/08/31: Invesco glass windowed building. Invesco is an American investment management company.
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#8: Invesco (IVZ)
One of the world’s largest investment managers, Invesco oversees roughly $900 billion in assets – giving it a pretty considerable opportunity to make a good living by taking a modest cut of assets under management (AUM). Invesco offers a wide range of products and services, notably including exchange-traded funds of all sizes, focuses and ilks. IVZ’s products boast hundreds of billions in AUM in both active and passive funds, which in turn are marketed to retail investors, institutional investors, high-net worth clients and other institutions. The recently announced acquisition of OppenheimerFunds should provide cost synergies going forward.
Dividend yield: 6.2 percent
Market capitalization: $7.7 billion
NEW YORK, NY - SEPTEMBER 16:  General view of atmosphere outside of Macys Herald Square on September 16, 2015 in New York City.
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#7: Macy’s (M)
Famed department store chain Macy’s is increasingly mentioned among high dividend stocksnowadays – that tends to happen when share prices are constantly eroding. Like many of its peers, Macy’s has been struggling to battle the long-term trend toward e-commerce and the secular decline of malls, Macy’s bread and butter. After rallying in the first half of 2018, Macy’s brief good luck hasn’t lasted, and shares are now re-approaching long-term lows reached in 2017. That said, Macy’s payout ratio, or the percentage of profits paid out as dividends, is relatively low, ranging between 30 and 40 percent.
Dividend yield: 6.2 percent
Market capitalization: $7.6 billion
Close-up of sign for Kimco Realty, a real estate investment trust which is among the largest publicly-traded operators of open-air shopping malls, in the San Francisco Bay Area town of Daly City, California, November 3, 2017.
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#6: Kimco Realty Corp. (KIM)
Unlike a handful of the other high dividend stocks on this list, KIM shares haven’t been stubbornly declining over the last year. As the first member of this group that’s a real estate investment trust, practically Kimco’s entire appeal to investors centers around its dividend. The company specializes in acquiring, developing and managing retail shopping centers in large U.S. urban centers. As a REIT, Kimco must pay out 90 percent of taxable income as a dividend; by entering into this structure, REITs don’t have to pay corporate taxes, avoiding the double taxation that would occur for investors otherwise.
Dividend yield: 6.4 percent
Market capitalization: $7.4 billion
AT&T
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#5: AT&T (T)
Like tobacco heavyweight Altria, AT&T is a large-cap, blue-chip defensive stock with a predictable, consistent, and heavily entrenched business with impressive cash flows and little explosive growth potential in its future. America’s largest telecom company prides itself on returning capital directly to shareholders, paying out a reasonable 60 to 70 percent of earnings to investors in quarterly stipends. With a yield easily more than double the 10-year Treasury, AT&T is a prime choice for conservative long-term income investors. One of the elite so-called “dividend aristocrats,” AT&T has raised its dividend for 34 consecutive years.
Dividend yield: 6.8 percent
Market capitalization: $218 billion
COLMA, CA - OCTOBER 25:  The Ford logo is displayed on a brand new Ford Focus car at Serramonte Ford on October 25, 2018 in Colma, California. Ford announced the recall of over 1 million 2012 through 2018 model-year Ford Focus cars in North America with 2-liter four-cylinder engines due to a fuel system problem that could abruptly stall the engine.
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#4 Ford Motor Co. (F)
A traditionally cyclical business, U.S. automaker Ford is largely unloved by Wall Street, particularly compared to some of its sexier peers. In particular, electric carmaker Tesla (TSLA) is currently worth about 30 percent more than Ford, despite Ford’s 2018 revenue being roughly eight times higher ($160.3 billion versus $21.5 billion) than Tesla’s. One thing Ford has in spades that Tesla lacks, however, is profitability. Trading at less than seven times forward earnings, Ford makes sense for most patient long-term investors. Ford is unlikely to be one of the highest dividend paying stocks in the S&P 500 for years on end.
Dividend yield: 6.8 percent
Market capitalization: $34 billion
KIEV, UKRAINE - 2019/01/12: Iron Mountain Enterprise information management company logo seen displayed on a smart phone.
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#3: Iron Mountain (IRM)
Global storage and information management provider Iron Mountain has a boring little business – precisely the type of business conservative income investors should be seeking out when selecting high dividend stocks. Servicing more than 225,000 client organizations, Iron Mountain is the provider of choice for many medium- and large-sized companies seeking reliable storage options for documents, data and other valuable assets. IRM is managing the digital renaissance by making data centers and cloud offerings a larger part of its service. The company is profitable and successful now, but shareholders should watch carefully as digital storage increasingly dominates.
Dividend yield: 6.9 percent
Market capitalization: $10 billion
Commercial real estate property exterior location at a mall
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#2: Macerich Co. (MAC)
It’s no coincidence that another REIT ranks among the highest paying dividend stocks in the entire S&P. Like Kimco Realty, Macerich is a retail REIT, focusing on commercial properties in high-traffic metro markets across the U.S. While this insulates Macerich to an extent from the threat of e-commerce, shares have still suffered through a tough multi-year stretch; by early 2019 MAC stock had fallen 50 percent from 2016 highs above $90 a share. Although dividends have risen in recent years, a special dividend hasn’t been declared since 2016, and profits have fallen markedly, along with the share price.
Dividend yield: 7 percent
Market capitalization: $6.1 billion
DENVER - NOVEMBER 15:  CenturyLink Regional Headquarters in Denver, Colorado on November 15, 2018
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#1: CenturyLink (CTL)
The stock with the highest dividend in the S&P 500 is CenturyLink, the telecommunications provider. Although a dividend greater than 8 percent is about three times what U.S. 10-year Treasurys currently yield, CTL is a prime example of how high dividend stocks often carry a disproportionate amount of risk with them as well. Shares have plunged in recent years, and in February CenturyLink slashed its dividend by 54 percent. That said, this will save the company $1.3 billion annually, making its payout far more sustainable over time. Risk-tolerant income investors should consider CTL if and when this ruthless selloff subsides.
Dividend yield: 8.3 percent
Market capitalization: $12.9 billion
SAN FRANCISCO, CALIFORNIA - SEPTEMBER 12, 2018: The entrance to an AT
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These are the highest dividend-paying stocks in the S&P 500.
To recap, here are the 10 highest dividend paying stocks in the S&P 500:
#10: Newell Brands (NWL) – 5.8 percent.
#9: Altria Group (MO) – 6.1 percent.
#8: Invesco (IVZ) – 6.2 percent.
#7: Macy’s (M) – 6.2 percent.
#6: Kimco Realty Corp. (KIM) – 6.4 percent.
#5: AT&T (T) – 6.8 percent.
#4 Ford Motor Co. (F) – 6.8 percent.
#3: Iron Mountain (IRM) – 6.9 percent.
#2: Macerich Co. (MAC) – 7 percent.
#1: CenturyLink (CTL) – 8.3 percent.

15 comments:

  1. I'm sure a lot of people will get to know high dividend stocks now and try to invest in them.I will like to invest in centurylink.

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  2. Thanks a bunch...penny stock traders will find this very useful...great share..now,I know the highest dividend paying stocks..

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  3. This is really a good stock education for those that want to invest in good yielding company. I will love to try out Ford motors

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  4. This is not surprising but MALBORO is included as one of those that has high dividend stocks???A cigar really? then again I do not smoke so it is okay I guess. It is bad for health.

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  5. I had a feeling At&T would make the top of the list and I wasn't wrong. I guess all this stock education is starting to pay out.

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  6. The investors who got these stocks while they were still in the penny stocks market must have struck it rich. Such lucky traders!

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  7. Some really good investing tips are needed to catch these stocks early. The early birds already caught the worms.

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  8. I'm just starting my journey with penny stocks but I hope one day I will own stocks in such companies. That is my goal.

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  9. Seeing such good yields I'll be definitely taking the free stock course to one day be able to invest in such companies. I feel really pumped!

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  10. This comment has been removed by the author.

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  11. These companies are quite secure as they belong to the high divided stock class. They are such great companies to invest in.

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  12. What a wonderful analysis of worlds largest companies. Its great to know they have very fare prices on trading on stock.

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  13. Amazing investing tips to glean from your free stock course. Looking forward to trading with some of this companies.

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  14. Am not so much into the stock market but it seems i must join very soon. I like how the companies highlighted have a high dividend stock which am so much interested in thanks for bringing this to my attention.

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  15. Thanks for showing all of these. I'm going to start investing in some dividend stocks in order to start receiving some passive income. I didn't know about Kimco before, but I'm going to check it out.

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