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.
8. Alexandria Real Estate Equities, Inc. (NYSE:ARE)
Dividend Yield as of September 27: 6.30%
Alexandria Real Estate Equities, Inc. (NYSE:ARE) is a real estate investment trust based in California. It develops, leases, and manages office and laboratory buildings tailored for the life sciences industry, with campuses concentrated in leading innovation hubs including Boston, San Diego, and the San Francisco Bay Area. A large portion of its rental revenue is derived from big “Megacampus” venues in these top markets.
The core strategy of Alexandria Real Estate Equities, Inc. (NYSE:ARE) is providing state-of-the-art, flexible space to its tenants, ranging from global pharmaceutical companies to small startup biotech firms. Key priorities include sustaining strong occupancy in premier clusters, broadening its tenant mix, advancing new developments, and maintaining a cautious financial approach with solid liquidity. Robust sales and competitive costs can also lead to good profitability.
In addition, Alexandria Real Estate Equities, Inc. (NYSE:ARE) has consistently paid dividends for 29 years and increased its distributions several times during this period. The company now pays a quarterly dividend of $1.32 per share and has a dividend yield of 6.30%, as of September 27.
7. Verizon Communications Inc. (NYSE:VZ)
Dividend Yield as of September 27: 6.33%
Verizon Communications Inc. (NYSE:VZ) is a major player in the telecommunications sector, best known for its extensive wireless network. Its focus is on retaining a robust 4G LTE foundation, as well as scaling up 5G deployments to support increasing demand for mobile data that’s speedy and dependable.
Recent efforts by Verizon Communications Inc. (NYSE:VZ) have concentrated on delivering an enhanced customer experience through improved network performance and value for money. The incremental increase in wireless service revenue demonstrates the company’s solid market position. This has made it so successful for so long, adapting to technologies sooner than most and setting prices that allow it to increase over rivals.
Verizon Communications Inc. (NYSE:VZ) announced a 1.8% increase in its quarterly dividend on September 5 to $0.69 per share. This raise extended the company’s streak of dividend growth to 19 years, making VZ one of the best dividend stocks you can get. The yield on the stock is 6.33%, as of September 27.
6. Healthpeak Properties, Inc. (NYSE:DOC)
Dividend Yield as of September 27: 6.44%
Healthpeak Properties, Inc. (NYSE:DOC) is heavily exposed to healthcare real estate, with a focus on outpatient medical centers, senior living, and life science labs. Its portfolio includes more than 278 properties across 32 states, with a strong leasing occupancy rate of 94%. It depends on triple-net leases, under which tenants pay for most of the operating expenses, so the company receives steady cash flow.
Strategic acquisitions and its 2024 merger with Physicians Realty Trust have increased Healthpeak Properties, Inc. (NYSE:DOC)’s property portfolio both in size and scale of operations. This strategy is consistent with the general shift in healthcare toward services provided on an outpatient basis, situating the company well in an evolving marketplace.
Healthpeak Properties, Inc. (NYSE:DOC) is a high dividend payer. It pays a quarterly dividend of $0.1017 per share, and the dividend is currently up 1.7% year on year. DOC is one of the best dividend stocks to buy now that it has a dividend yield of 6.44% as of September 27.
5. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of September 27: 6.45%
Altria Group, Inc. (NYSE:MO) is an American company and one of the world’s leading producers and marketers of tobacco products, including cigarettes, as well as medical products designed to treat conditions related to tobacco use. The iconic company, best known for its Marlboro cigarettes, has long been a popular choice for dividend investors. However, its long-term prospects are now arguably more uncertain than ever.
The tobacco industry is shifting from traditional combustible cigarettes toward newer smoke-free products. Altria Group, Inc. (NYSE:MO)’s ability to capitalize on these emerging trends will play a key role in determining its future value, especially as growth in its traditional tobacco business slows.
Oral nicotine salt pouches have been Altria Group, Inc. (NYSE:MO)’s most successful venture in the smoke-free market. In the second quarter of 2025, about 83% of the company’s operating income still came from traditional smokeable products. The remaining 17% includes all oral tobacco and nicotine offerings, not just the On! brand. This indicates that smoke-free products are far from being a major revenue driver for Altria and likely will not be for the foreseeable future.
Altria Group, Inc. (NYSE:MO)’s dividend history also makes it an appealing choice for income investors. The company has raised its dividends 60 times in the past 56 consecutive years. It currently offers a quarterly dividend of $1.06 per share and has a dividend yield of 6.45%, as of September 27.
4. Pfizer Inc. (NYSE:PFE)
Dividend Yield as of September 27: 7.24%
Pfizer Inc. (NYSE:PFE) is a US pharmaceutical and biotech giant that provides various allied products and services to its customers. In recent years, the company has made several moves to fill its drug pipeline, most notably its $43 billion acquisition of Seagen, a cancer-focused company. The pharmaceutical behemoth is, meanwhile, mirroring these moves to broaden its GLP-1 line. The company recently revealed that it will purchase Metsera, a firm that is designing treatments for managing weight, for $4.9 billion in cash.
Although it’s too early to say whether any of these drugs will be successful in clinical trials, the products of Metsera are focused on addressing a popular area of the GLP-1 market. Overall, Pfizer Inc. (NYSE:PFE)’s core business fundamentals mean this stock may be attractive for the long run.
Pfizer Inc. (NYSE:PFE) is one of the best dividend stocks as it has raised its payouts for 15 straight years. The company offers a quarterly dividend of $0.43 per share, and the dividend yield is 7.24%, as of Sep 27.
3. Conagra Brands, Inc. (NYSE:CAG)
Dividend Yield as of September 27: 7.70%
Conagra Brands, Inc. (NYSE:CAG) is a packaged foods company from Chicago, Illinois that sells its products for retail and food service under a portfolio of popular brand names such as Hunt’s, Orville Redenbacher’s, and Slim Jim. It owns Hunt’s tomato sauce, Pam cooking spray, and Hebrew National hot dogs.
While consumer staples are generally a steady industry, Conagra Brands, Inc. (NYSE:CAG) has had its issues, seeing its revenue fall for two straight fiscal years. The stock has seen analysts cut targets after the company disappointed on both revenue and earnings in its fiscal fourth quarter. Fiscal 2026 guidance expects organic sales to be flat and profits to miss market expectations. Based on the midpoint of net income guidance, the company’s payout ratio would be 79%, which is on the high side, but it might be sustainable if Conagra can increase its margins.
Having said that, the dividend history of Conagra Brands, Inc. (NYSE:CAG) makes it an excellent option for income investors. The company has been paying successive quarterly dividends since January 1976, and is currently paying a quarterly dividend of $0.35 per share. The stock has a dividend yield of 7.70% as of Sep 27.
2. United Parcel Service, Inc. (NYSE:UPS)
Dividend Yield as of September 27: 7.84%
United Parcel Service, Inc. (NYSE:UPS) is the world’s largest package delivery company and a global leader in supply chain solutions. It provides package delivery, supply chain management, and logistics services in more than 220 countries and territories.
In a major push toward better global smart logistics, United Parcel Service, Inc. (NYSE:UPS) has been shifting away from low-margin volumes to higher-margin business. That includes strategic network realignment, automation investments, and expansion in the healthcare logistics space. The company also emphasizes controlling labor costs and ensuring compliance with changing trade and environmental rules. Provided the network is efficiently managed, costs are controlled, and the labor situation is stable, it is able to adapt to changes in global trade.
United Parcel Service, Inc. (NYSE:UPS) is also one of the best dividend stocks to buy in the S&P right now. The firm has raised its dividend for 23 years in a row, and its current payout is $1.64 on a quarterly basis. The stock yields 7.84%, as of September 27th.
1. LyondellBasell Industries N.V. (NYSE:LYB)
Dividend Yield as of September 27: 11.08%
LyondellBasell Industries N.V. (NYSE:LYB) is a leading global chemicals, plastics, and polymers manufacturer with end markets that include packaging, automotive, and building materials. The chemical business has a cyclical aspect to it, so dividends aren’t a given, but the company seems well-positioned to keep its payout covered. Stronger market conditions could help to bring in more cash, and even if the company cuts its dividend, the lofty yield could still provide a decent return for investors. Although there are reasons to be cautious given the volatility of the industry, LYB is a relatively dependable dividend stock.
LyondellBasell Industries N.V. (NYSE:LYB) approach concentrates on broadening its Circular and Low Carbon Solutions business, transforming its portfolio, driving greater efficiency and cost management, and exiting the refining business completely.
LyondellBasell Industries N.V. (NYSE:LYB) currently offers a quarterly dividend of $1.37 per share, representing a 2.2% raise in May and the 15th straight year of dividend increase, which makes it one of the best dividend stocks to buy. As of September 27, the stock has a dividend yield of 11.08%.
While we acknowledge the potential of LYB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LYB and that has 100x upside potential, check out our report about this cheapest AI stock.
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