The yields after September 2021 (including the present rate) are calculated using S&P’s 12-month dividends through September 2021.
- For historical S&P 500 Dividend Yields, see Robert Shiller’s book Irrational Exuberance.
What are the highest paying dividend stocks in the S&P 500?
1. AT&T (American Telephone and Telegraph Company) (T)
AT&T’s dividend yield is quite appealing. However, the telecom company has recently received the wrong kind of attention from government officials. The Securities and Exchange Commission (SEC) sued AT&T earlier this year for allegedly disclosing insider information to multiple Wall Street analysts before of a significant earnings announcement in 2016. When the company’s earnings were properly presented to the public, the analysts dropped their aggregate revenue predictions, allowing the company to beat consensus expectations. While the lawsuit is unlikely to affect AT&T’s ability to pay its dividend or earn money from its large customer base, it may cause some unwelcome turbulence for investors in the near term. For the time being, conservative investors should avoid the stock.
Lumen Technologies is number two (LUMN)
Lumen is a wireline telecommunications company that specializes in fiber-based services (it was formed by merging CenturyLink and Level 3 Communications). It’s also shifting its focus to digital applications and investments in “4th Industrial Revolution” technologies like Edge Cloud and other platform-based solutions. Through its Quantum Fiber brand, the corporation reaches more than 2.4 million residences, with over 400,000 new houses added in 2020 alone. Lumen, on the other hand, has a large debt load, despite its commitment to paying down debt, lowering interest costs, and strengthening its balance sheet. Lumen’s CEO stated again that the company intends to return more capital to shareholders in the next quarters by investing in expansion and paying dividends. While its profits growth prospects aren’t as bright as those of some of the other companies on our list, profitability appears to be stabilizing, and the de-leveraging approach appears to be paying off. If you can handle volatility, it’s worth a look.
Altria Group is number three on the list (MO)
Altria is well-known as one of the world’s largest tobacco and tobacco-related product manufacturers. With a current annual payout of $3.60 per share, the corporation is also regarded for being one of the most consistent high-dividend payers among U.S.-based blue-chip companies. Indeed, in the last ten years, Altria’s dividend payouts have nearly tripled. While some investors are concerned that Altria’s cigarette and tobacco business will be hampered by changing consumer preferences, the company’s investments in increasingly popular vaping and cannabis products, as well as the FDA’s recent approval of e-cigarette product marketing for the first time, should ensure revenue growth in the future.
Kinder Morgan is number four on the list (KMI)
Kinder Morgan is one of North America’s largest energy infrastructure firms, owning or controlling roughly 83,000 miles of oil and gas pipelines. However, Kinder’s long-term growth strategy has been pushed to rethink due to a statewide move to renewable energy. Instead of focusing on expanding its pipeline, the business has stated that it will gradually shift its focus to purchasing existing assets in the alternative energy industry, as well as maximizing its natural gas assets. Kinder isn’t one of the best-performing energy firms right now, but we believe its track record of reacting to major changes in the market should preserve its dividend security.
ONEOK is number five (OKE)
With operations in Kansas, North Dakota, and Texas, ONEOK is a leading natural gas midstream corporation in the United States. Following the collapse of crude oil and natural gas prices a year ago, OKE faced substantial hurdles in its business. However, OKE had been in a similar scenario before, most recently during the 2015-16 energy sector crisis, and the company has a track record of surviving even the most difficult economic conditions. Now fast forward to today, and OKE is making money once more, thanks to rising oil prices. Its dividend payouts have also been steadily increasing over the last few years, with a quarterly payout of 94 cents per share currently. Now that the oil patch’s troubles have passed, OKE’s stable dividend and high yield make it an enticing target for income-oriented investors.
Williams Companies, No. 6 (WMB)
Williams Companies is a natural gas processing and transportation company established in the United States, with other assets in petroleum and power generating. Williams’ cash flow has been remarkably consistent in recent years, and increased energy prices are expected to raise earnings even more in the future. The company is aggressively increasing its activities in the northeastern and southwest regions of the United States, which should allow it to continue paying a high dividend (current annual dividend $1.64 per share). It appeals to us.
7. PPL Corporation (PPL)
PPL is a Fortune 500 utility firm that serves more than 10 million consumers in the United States and the United Kingdom, though it is currently selling its utility business in the United Kingdom. It has a 21-year track record of dividend increase and now pays a forward divided-per-share of $1.66. While PPL’s dividend growth rates have slowed, the company’s earnings outlook is likely to be robust enough to maintain its high dividend distribution in the future. After selling its U.K. energy distribution network operator, there has also been speculation that the corporation could become a takeover target. It isn’t the best performer in terms of capital gains, but its dividend consistency is commendable.
Exxon Mobil is the eighth largest oil company in the world (XOM)
Exxon, like the rest of the energy sector, experienced substantial hurdles last year when oil prices fell. Exxon’s stock plunged 54 percent from high to trough during the 2020 pandemic-driven fall in the first three months of the year. Despite the drop in the stock price, the company’s management decided to keep the 87 cents-per-share quarterly dividend. However, it failed to increase the dividend in the calendar year 2020, breaking an 18-year streak of dividend increases. Nonetheless, Exxon is still on the Dividend Aristocrats list as of this writing, with a 37-year track record of increasing annual payouts, despite a dividend payment ratio of 154 percent at one point.
Philip Morris (nine) (PM)
Despite dwindling cigarette sales in the United States and other industrialized countries, tobacco giant Philip Morris is collaborating with Altria (described above) to develop heated tobacco products that release fewer chemicals than traditional cigarettes, reducing health concerns. Philip Morris’ heated tobacco products have seen a considerable boost in sales, putting the business on track to meet its long-term objective of replacing traditional cigarette sales with lower-risk alternatives. The company’s relatively inexpensive valuation, as well as its long-term track record of progressively growing the dividend, are both appealing.
Iron Mountain (number 10) (IRM)
While cybersecurity is hot right now, some businesses prefer to preserve documents the old-fashioned way for safer storage, which is where Iron Mountain comes in. Iron Mountain is best known for the offsite record storage service it provides businesses to keep paper documents safe. You may have seen the company’s mobile paper shredding trucks driving around your city, but it is best known for the offsite record storage service it provides businesses to keep paper documents safe. It has over 95 percent of Fortune 1000 firms as customers, a 98 percent customer retention rate, and more than 1,430 locations throughout the world. Iron Mountain has increased its dividend consistently in recent years, and following a good second-quarter report, the company’s board of directors declared a decade-high quarterly dividend of 62 cents per share. Analysts expect the high dividends to continue in the future.
That concludes the top ten dividend-paying stocks in the S&P 500 today. I highly recommend subscribing to our Cabot Dividend Investor advice, where head analyst Tom Hutchinson has a portfolio full of dividend-paying stocks that give substantial yields and excellent share price rise, independent of yield.
Does S&P 500 pay dividends monthly?
According to an Investor’s Business Daily examination of Morningstar Direct data, more than 500 ETFs pay dividends at least monthly, including SoFi Weekly Income ETF (TGIF), Global X Nasdaq 100 Covered Call ETF (QYLD), and Invesco S&P 500 Low Volatility ETF (SPLV).
Do Tesla pay dividends?
Tesla’s common stock has never paid a dividend. We want to keep all future earnings to fund future expansion, so no cash dividends are expected in the near future.
How long do you have to hold a stock to get the dividend?
You must keep the stock for a certain number of days in order to earn the preferential 15 percent tax rate on dividends. Within the 121-day period around the ex-dividend date, that minimal term is 61 days. 60 days before the ex-dividend date, the 121-day period begins.
Does S&P 500 return include dividends?
Several factors influence the overall price of the S&P 500, including the number of stock shares outstanding for each business and the company’s share price. To put it another way, the index measures the market capitalization of the companies that make up the index. The market capitalization of a corporation is calculated by multiplying the number of outstanding shares by the stock price. As a result, companies with larger market capitalizations have a greater impact on the S&P than companies with smaller market capitalizations.
The S&P 500 index, on the other hand, is not a total return index, which means it does not incorporate profits from cash dividends given to shareholders. Investors should incorporate dividend payments into their overall investment return because many businesses in the S&P pay them.
The S&P 500 index is scaled down to a more manageable and reportable level using an index divisor. The divisor is a proprietary figure that might vary as a result of stock splits, spinoffs, and other factors that may alter the index’s value.
Does Vanguard S&P 500 pay dividends?
The dividend cover is roughly 1.0, and there are normally four dividends per year (excluding specials). Vanguard S&P 500 UCITS ETF was forecasted with a 24 percent accuracy by our premium tools. Your Vanguard S&P 500 UCITS ETF account is set up to receive notifications.
What is Netflix dividend?
Netflix (NFLX) dividend payout and yield data since 1971. Netflix (NFLX) has a current TTM dividend payout of $0.00 as of December 03, 2021. Netflix’s current dividend yield is 0.00 percent as of December 03, 2021.
What is Coca Cola dividend?
Coca-Cola pays a quarterly dividend of $0.42 per share, resulting in a dividend yield of 3.07 percent. The company’s dividend payout ratio, or the percentage of earnings paid out as dividends, has risen to over 100% in recent years. In particular, a dividend payout ratio of more than 100% is unsustainable in the long run since the company will eventually run out of cash.
Do you pay taxes on dividends?
Dividends are considered income by the IRS, so you’ll normally have to pay taxes on them. Even if you reinvest all of your dividends into the same firm or fund that gave them to you, you would still owe taxes because they went through your hands. The exact dividend tax rate is determined on whether you have non-qualified or qualified dividends.
Non-qualified dividends are taxed at standard income tax rates and brackets by the federal government. Qualified dividends are taxed at a lower rate than capital gains. There are, of course, certain exceptions.
If you’re confused about the tax implications of dividends, the best thing to do is see a financial counselor. A financial advisor can assess how an investment decision will affect you while also taking into account your overall financial situation. To find choices in your area, use our free financial advisor matching tool.
