S&P 500 Highest Dividend Yield Stocks Outperform Treasuries

The S&P 500 highest dividend yield stocks have consistently outperformed Treasuries, making them an attractive option for investors seeking income.

In fact, a study of the S&P 500 Dividend Aristocrats found that these stocks have historically offered higher returns than Treasury bonds over the long-term.

Investors who have held onto these dividend aristocrats have seen their portfolios grow significantly, often with lower volatility than the broader market.

Dividend aristocrats have increased their dividends for 25 or more consecutive years, providing a predictable source of income for investors.

Pioneer Natural Resources boasts the highest dividend yield in the S&P 500 at 12.21%. That's a whopping return on investment.

Walgreens Boots Alliance has a forward dividend yield of 10.47%, making it a top contender for dividend investors. Its analysts' consensus recommendation is to hold.

Verizon Communications has raised its dividend annually for two decades, and its forward dividend yield is 6.79%. It's a Buy-rated stock with a long history of consistent payouts.

Some of the highest dividend yield stocks in the S&P 500 are in the energy sector, including Pioneer Natural Resources, Devon Energy, and Kinder Morgan, all of which have dividend yields above 6%.

Here are some of the top dividend yielding stocks in the S&P 500:

These stocks are not just high-yielding, but also have a strong track record of consistent payouts.

To identify the top dividend stocks, we start with the SPDR Portfolio S&P 500 High Dividend ETF, which tracks the S&P 500 High Dividend Index. This index includes the top 80 yielding stocks in the S&P 500.

The methodology involves screening this group to remove stocks with an average analyst rating of lower than moderate buy. This ensures that only high-quality stocks with strong potential for growth make the cut.

We then rank the remaining stocks by dividend yield to determine the top 10.

The S&P 500 dividends are giving Treasuries a run for their money. Almost overnight, they've become a real competitor, with no shortage of big yields.

Treasury yields are plummeting, with the 10-year yield at 4.1%, a 20% drop from just weeks ago. This is creating an opportunity for dividend-paying stocks to shine.

There are now 79 stocks in the S&P 500 that yield as much or more than 10-year Treasuries. The average yield of the 400 S&P 500 stocks that pay a dividend is 2.64%.

To identify the top dividend stocks, I started with the SPDR Portfolio S&P 500 High Dividend ETF, which tracks the S&P 500 High Dividend Index. This index includes the top 80 yielding stocks in the S&P 500.

The fund's top holdings were screened to remove any with an average analyst rating of lower than moderate buy. This narrowed down the list to the most promising stocks.

A total of 10 stocks were selected based on their dividend yield.

REG Is a large-cap REIT with a significant presence in the shopping center industry. It has a market cap of $11.0 billion and a stock price of $59.36.

REG's financial performance is impressive, with a $40 million gain in core operating earnings in 2023, bringing the total to $700 million. This growth is a testament to the company's disciplined approach to capital management and commitment to managing ESG risks.

The company's dividend yield is 4.5%, which is a significant return for investors. REG pays quarterly dividends, with an annual dividend of $2.68.

Here are some key statistics about REG:

REG's recent acquisition of Urstadt Biddle has increased its leadership position and footprint in grocery-anchored shopping centers, setting the stage for long-term growth.

The top 10 highest paying stocks in the S&P 500 are a great place to start if you're looking for dividend yield.

Pioneer Natural Resources has the highest dividend yield at 12.21%. This is significantly higher than the average dividend yield of the S&P 500.

Walgreens Boots Alliance and Altria Group also make the list with dividend yields of 9.36% and 9.21% respectively. These companies have been paying consistent dividends to their shareholders.

Verizon has a dividend yield of 6.79%, and has raised its dividend annually for two decades.

Pfizer has a 15-year track record of consecutive hikes to its payout, with a dividend yield of 6.53%. This is a testament to the company's financial health.

The table below lists the top 10 highest paying stocks in the S&P 500, along with their dividend yields and analysts' consensus recommendations.

VICI Properties also makes the list with a dividend yield of 5.8%. The company has increased its dividend six times in six years, and has a strong track record of financial performance.

Earning impressive dividend yields from market-leading companies requires careful research.

You can satisfy your investment goals with a well-diversified portfolio that includes dividend stocks.

Market-leading companies can provide a reliable source of income through dividend payments.

To maximize your returns, consider reinvesting those dividends to ramp up your income-earning portfolio faster.

Inclusion is key to achieving the bottom line. Research shows that market-leading companies can offer impressive dividend yields.

To maximize returns, it's essential to keep an eye on sector diversification. This helps to minimize risks and ensure a stable income stream.

Remember to consider reinvesting dividends to ramp up your income-earning portfolio faster. This can lead to significant long-term gains.

When building a retirement portfolio, inclusion of dividend stocks can be a good option for investors who can accept volatility associated with stocks.

Dividend stocks can provide a steady stream of income, reducing a retiree's dependence on liquidations to fund retirement distributions.

Accepting some level of volatility is often necessary for investors seeking long-term growth and income.

If you're looking for S&P 500 stocks with high dividend yields, Pioneer Natural is a standout, yielding an impressive 12.2% despite a 2.6% stock price drop this year.

Pioneer Natural is the only S&P 500 stock paying a double-digit percentage as a dividend, with rival Exxon Mobil yielding just 3.8%.

Walgreens Boots Alliance is another high-yielding stock, with a 9.4% yield due to a 43% stock price plunge, but its adjusted profit per share is seen falling more than 16% this fiscal year.

Regency Centers, on the other hand, offers a more stable dividend yield, with a market cap of $11.0 billion and an annual dividend of $2.68, paid quarterly.

Crown Castle is another option, with a 6.0% dividend yield and an annual dividend of $6.26.

Here are some key stats on these high-yielding S&P 500 stocks: