In this article, we will take a look at the highest-paying dividend stocks in the S&P 500.
If you’re an investor drawn to dividends, chasing the highest yields can be a risky game. Sure, a fat yield grabs attention, but honestly, that’s often just a sign the stock’s been hammered. Since dividend yields increase when share prices fall, a high yield could just be a sign of a stock that has experienced significant declines.
There is a lot of selling pressure on the stock of a company. It is natural that when a stock is getting hit so hard, it makes you question the feasibility of maintaining the dividend.
Take Walgreens Boots Alliance as an example. The pharmacy giant was formerly a member of the Dow Jones Industrial Average and itself listed on the S&P 500 Dividend Aristocrats, which is an index that features companies that have increased their payouts for at least 25 years consecutively. However, financial woes compelled WBA to drastically lower its dividend last year, with it being removed from the Dow and the Aristocrats index.
That said, high dividend yields are not always a bad idea. When accompanied by dividend growth and stability, they offer solid investment options for income investors. For this, we will now take a look at some of the highest-yielding stocks in the S&P 500.
Our Methodology
For this list, we scanned the list of companies in the broader market and picked dividend stocks with the highest dividend yields, as of September 27. These companies also offer stable dividend histories and strong balance sheets. The stocks are ranked according to their dividend yields.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Dow Inc. (NYSE:DOW)
Dividend Yield as of September 27: 6.10%
Dow Inc. (NYSE:DOW) is the producer of polyethylene and other commodity chemicals that are used as raw materials in packaging and consumer product industries. Meanwhile, the company has faced pressure in recent years from rising US interest rates and growing domestic supply in China. Adding to the problems, Dow slashed its dividend by 50% this year, a move that weighed on the company’s stock. The stock has fallen by almost 42% since the beginning of 2025.
Nevertheless, Dow Inc. (NYSE:DOW) is still relying on its core strengths to turn its fortunes around — manufactured integration, access to inexpensive feed stocks, and a deep commitment to sustainability. Its operations depend on its global supply chain management and the continual adoption of new technologies. The company focuses on innovation, global reach, and an integrated value chain as the core of what will drive success in the long term. With volatile market conditions, it has shifted focus toward cutting costs, optimizing assets, and preserving capital.
Though Dow Inc. (NYSE:DOW) cut its dividend, the firm still paid $496.0 million to shareholders in dividends in the last quarter. The company provides an annual dividend of $0.35 per share and has a dividend yield of 6.10%, as of September 27.
9. The Kraft Heinz Company (NASDAQ:KHC)
Dividend Yield as of September 27: 6.14%
The Kraft Heinz Company (NASDAQ:KHC) is a global food and beverage company with a broad product range that includes cheese, sauces, lunch meats, and convenience food. It boasts some of the most well-known brands in the market, along with regional and store brand offerings.
Recently, The Kraft Heinz Company (NASDAQ:KHC) has been focusing on sharpening its market segmentation and global presence by adopting region-specific strategies. Controlling expenses, especially raw material and supply-chain costs, has been essential to margin protection in the face of higher production costs.
While The Kraft Heinz Company (NASDAQ:KHC) doesn’t have any dividend growth streak, the corporation has been consistently paying dividends to its shareholders for a long time. The company is currently paying a quarterly dividend of $0.40 per share, and the current dividend yield is 6.14%, as of September 27.
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