In this article, we will take a look at the 5 High Yield Fortune 500 Stocks to Buy Now. For a deeper discussion and analysis, please refer to the 12 High Yield Fortune 500 Stocks to Buy Now.
Photo by Viacheslav Bublyk on Unsplash
5. PepsiCo, Inc. (NASDAQ:PEP)
Dividend Yield as of June 11: 4.12%
PepsiCo, Inc. (NASDAQ:PEP) engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide.
On June 5, Wells Fargo trimmed its price target on PepsiCo, Inc. (NASDAQ:PEP) from $160 to $150, but maintained an ‘Equal Weight’ rating on the shares. The lowered target still indicates an upside of 4% from the current price level.
Wells Fargo cited ongoing macroeconomic uncertainty, which is likely to have an impact on consumer spending and therefore PepsiCo’s product categories. While the analyst firm acknowledges that Pepsi’s execution has been good in certain areas, especially within its Food segment, it believes that the company’s goal of accelerating sales growth through 2026 may be tough to achieve. According to Wells, the debate around PepsiCo’s long-term growth prospects in North America is likely to persist.
PepsiCo, Inc. (NASDAQ:PEP) topped Wall Street estimates in its Q1 2026 report in April, supported by its price cuts for salty snacks in the US and the strong demand for diet sodas. The company also reaffirmed its guidance for FY 2026, with the company projecting organic revenue to rise between 2% and 4% and core constant currency EPS to grow 4% to 6% compared to last year.
PepsiCo, Inc. (NASDAQ:PEP) boasts an annual dividend yield of 4.12%, putting it among the 10 Best Dividend-Paying Beverage Stocks to Buy Now.
4. HP Inc. (NYSE:HPQ)
Dividend Yield as of June 11: 4.86%
HP Inc. (NYSE:HPQ) provides personal computing, printing, 3D printing, hybrid work, gaming, and other related technologies in the United States and internationally.
On June 2, Goldman Sachs raised the firm’s price target on HP Inc. (NYSE:HPQ) from $16 to $19, but maintained its ‘Sell’ rating on the shares. The revised target, which still indicates a downside of over 23% from the current levels, comes following the tech company’s Q2 report on May 27.
The analyst firm remains cautious regarding HP’s outlook, citing the significant increases in the company’s input costs and the high competition in the PC market. According to Goldman, it is still uncertain if HP’s efforts to improve its product mix, price increases, and additional supply chain mitigation measures will be enough to offset the broader industry headwinds during the latter half of this year and throughout 2027.
HP Inc. (NYSE:HPQ) topped profit and revenue estimates in its Q1 report last month, supported by the robust demand for AI-optimized personal computers. However, the company warned that it expects the rising input costs to put increasing pressure on its operating margins, particularly in Personal Systems.
3. British American Tobacco plc (NYSE:BTI)
Dividend Yield as of June 11: 5.34%
British American Tobacco plc (NYSE:BTI) is a leading multi-category consumer goods company that provides tobacco and nicotine products to millions of consumers around the world.
On June 8, Morgan Stanley analyst Rashad Kawan boosted the firm’s price objective on British American Tobacco plc (NYSE:BTI) from £4,900 to £4,950, while maintaining an ‘Overweight’ rating on the shares. The revised target reflects an upside of over 7% from the current share price.
British American Tobacco plc (NYSE:BTI) sells a wide range of products, including vaporizers, chewing tobacco, and heated tobacco, but the majority of the company’s revenue still comes from cigarettes. However, with a large number of consumers now moving away from smoking, BAT is having to transition to next-gen products, including nicotine pouches, which have emerged as the fastest-growing segment within new categories. The business witnessed a 47% rise in sales volume in 2025.
British American Tobacco plc (NYSE:BTI) also offers an attractive annual dividend yield of 5.34%, and its high operating profit margin, which came in at 44% on an adjusted basis last year, helps to ensure the reliability of the high payout.
2. Verizon Communications Inc. (NYSE:VZ)
Dividend Yield as of June 11: 6.03%
Verizon Communications Inc. (NYSE:VZ) engages in the provision of communications, technology, information, and streaming products and services to consumers, businesses, and governmental entities worldwide.
On June 5, Verizon Communications Inc. (NYSE:VZ) declared a quarterly dividend of $0.7075 per share. The dividend is payable on August 3 to shareholders of record July 10. Verizon made approximately $11.5 billion in cash dividend payments in 2025 and boasts a robust annual yield of 6.03%. The company has grown its dividend for 20 consecutive years, putting it among the 15 Best Dividend Paying Stocks to Buy Right Now.
Dan Schulman, CEO of Verizon Communications Inc. (NYSE:VZ), commented:
“Verizon’s commitment to the dividend remains ironclad and is a direct reflection of our focus on long-term shareholder value. Through our ongoing transformation, we continue to prioritize building trust, delighting our customers, and staying disciplined with our capital allocation strategy. Twenty consecutive years of dividend increases is a track record we’re extremely proud of and one that reflects the cash-generating nature of our business.”
According to market strategist Kenny Polcari, while Verizon may never resemble a high-growth tech stock, it appeals to income-oriented portfolios due to its highly predictable cash flows, essential services exposure, and durable income generation that investors value in periods of high volatility.
1. Pfizer Inc. (NYSE:PFE)
Dividend Yield as of June 11: 6.57%
Topping our list of the Best Fortune 500 Dividend Stocks is Pfizer Inc. (NYSE:PFE). The company discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the United States and internationally. The company’s global portfolio includes medicines and vaccines, as well as many of the world’s best-known consumer health care products.
On June 10, Pfizer Inc. (NYSE:PFE) was upgraded by RBC Capital analyst Trung Huynh from ‘Underperform’ to ‘Sector Perform’. Mr. Huynh assigned the stock a price target of $25, indicating a downside of 5% from the current levels.
RBC noted that its overall investment outlook on Pfizer has not substantially changed. However, with the stock down by over 8% from its highs earlier this year and now trading at around 9-times forward earnings, the analyst firm believes that it offers a more balanced risk-reward profile.
RBC also highlighted two key catalysts for Pfizer – Sigvotatug vedotin in second-line lung cancer in mid-2026 and mevro in the latter half of this year. Moreover, the analyst highlighted the pharma company’s strong Q1 fundamentals that should support a potential 2026 guidance upgrade, as well as its robust dividend yield of 6.57%, which may help limit downside risk.
While we acknowledge the potential of PFE 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 PFE and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 High Yield Crude Oil Stocks to Buy Now and 10 Most Volatile Stocks to Buy in S&P 500
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
