9 Highest Dividend-Paying Stocks in the S&P 500
The highest dividend-paying stocks in the S&P 500 right now are blue-chip stocks that yield anywhere between 6.2% and 9.3% annually. And while markets are largely flat since Jan. 1 — with a fair amount of volatility along the way — that kind of return through dividends alone is incredibly attractive to low-risk investors right now.
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But as always, the reality of the situation requires a bit of nuance and context. For starters, many of the stocks on this list have seen shares decline 10% or more in recent months, so it’s hardly a lock that buying and holding for 12 months of dividends will result in a positive total return. It’s also worth noting that current yields are based on projected future annual payouts, and that prior dividends are no guarantee against future dividend reductions if these companies need to shore up their finances.
In other words, it’s “buyer beware” with these high-paying dividend stocks. But considering the volatility everywhere on Wall Street these days, it’s worth at least considering some of these investment options right now — warts and all:
| S&P 500 Stock | Forward Dividend Yield |
| Verizon Communications Inc. (ticker: VZ) | 6.1% |
| United Parcel Service Inc. (UPS) | 6.6% |
| Altria Group Inc. (MO) | 6.9% |
| Ford Motor Co. (F) | 7.0% |
| Alexandria Real Estate Equities Inc. (ARE) | 7.1% |
| Pfizer Inc. (PFE) | 7.5% |
| Walgreens Boots Alliance Inc. (WBA) | 8.9% |
| LyondellBasell Industries N.V. (LYB) | 9.1% |
| Dow Inc. (DOW) | 9.3% |
Verizon Communications Inc. (VZ)
Dividend yield: 6.1%
With almost 150 million total wireless customers, Verizon is the largest mobile platform in the nation. That gives it a tremendously reliable revenue stream from monthly cell phone plans, which in turn makes it a reliable dividend-paying stock. Massive scale and a reliable flow of cash is a big plus, of course, but the downside of being a telecom giant is the need to build out and maintain a nationwide network. As a result, VZ carried almost $120 billion in debt at the end of 2024, and persistently high interest rates will make future borrowing for infrastructure work very costly. That said, the environment also makes competition hard to come by — meaning a wide moat to protect VZ earnings. With a dividend that is only about two-thirds of profits, this top dividend stock‘s upsized payout is likely safe for the foreseeable future. And its low-risk appeal has caught on with investors lately too, driving shares up 10% since Jan. 1.
United Parcel Service Inc. (UPS)
Dividend yield: 6.6%
Many companies have been struggling lately thanks to the widespread uncertainty around U.S. tariffs, and UPS is at the bleeding edge of this trend thanks to its central role in supply chains. As proof of the current challenges, consider the firm just announced plans to cut 20,000 jobs in its recent earnings report thanks to expected drops in package volume. Shares of UPS have slumped roughly 20% since Jan. 1, but the good news for dividend investors is that its dominant position in the logistics industry should continue to serve it well. From a dividend perspective, UPS just provided shareholders its 15th year of consecutive dividend increases with a penny per share bump in February, and earnings are still comfortably larger than annual dividends, so there’s less risk than with other stocks on this list that may have unsustainable yields thanks to recent challenges.
Altria Group Inc. (MO)
Dividend yield: 6.9%
Normally, tobacco giant Altria is at the head of the pack when it comes to yield. The firm has an amazing track record of 56 years of consecutive dividend growth, providing regular paydays that are independent of the broader consumer spending environment thanks to strong demand for its leading tobacco products. But interestingly, MO has been creeping down the list of the best S&P 500 dividend stocks: Shares are up nearly 15% so far since Jan. 1 even as the market has melted down, and as shares rise the dividend yield actually shrinks a bit. Still, with a generous dividend yield approaching 7% it’s hardly stingy — so Altria may be among the most stable dividend stocks on this list thanks to that combination of yield and share performance.
Ford Motor Co. (F)
Dividend yield: 7%
Ford is unique in that its yield includes a special fifth dividend payment in February on top of its quarterly distribution. But considering that Ford paid this sweetener in both 2023, 2024 and 2025 it’s safe to bake that into the annualized yield. The result is a payout that makes this automaker one of the highest dividend-paying stocks in the S&P 500. Admittedly, shares of Ford have been largely disappointing since a short-lived run in 2021-2022 where F stock peaked at almost $20. That’s thanks to a host of reasons, including headwinds caused by tariff threats that have caused Ford to eliminate forward guidance altogether as of its first-quarter earnings report. That said, the core business of this auto giant is relatively stable and previous earnings targets were materially ahead of annual dividend payouts, so there may be reason to have confidence that this auto giant can tough out the stormy environment on Wall Street.
[READ: 5 of the Best Companies to Invest in for 2025 and Beyond]
Alexandria Real Estate Equities Inc. (ARE)
Dividend yield: 7.1%
A recent addition to the list of the highest S&P 500 dividend stocks is health care office space provider Alexandria Real Estate Equities. Alexandria claims it “pioneered the life science real estate niche,” providing science innovation locations in Boston, the San Francisco Bay Area, Seattle, Maryland, New York and other high-growth areas with roughly 40 million square feet of rentable space. Unfortunately, the company just reported a rocky first quarter in April that included news that it has an estimated $1.3 billion in construction costs that are not currently contracted out — making those costs likely to spiral higher thanks to materials that may be subject to inflationary pressure or tariffs. Investors abandoned ship after this news, with shares down nearly 30% in about two months. That big flop has boosted the company’s yield as a result, but obviously financial challenges like this are never something to celebrate, and income investors should tread lightly.
Pfizer Inc. (PFE)
Dividend yield: 7.5%
Pfizer is a big pharma stock with a lot of believers, thanks to more than 170 years of operating history and more recent wins like the blockbuster COVID-19 vaccine that made headlines a few years ago. More recently, however, PFE has lagged behind its peers — as evidenced by an 8% decline in revenue in its first-quarter earnings. That’s not just the fading impact of its COVID vaccine, but also related drugs like Paxlovid that saw sales crash 76% year over year. That decline in existing sales plus public failures to compete in the obesity drug marketplace has investors skeptical. That said, Pfizer’s dividend is quite sustainable when compared with annual earnings. So while share have declined about 20% in the last year on recent negativity, the big-time dividend does appear to be intact — for now.
Walgreens Boots Alliance Inc. (WBA)
Dividend yield: 8.9%
Down almost 40% in the last year and roughly 80% from its 2022 highs, WBA has been a favorite punching bag on Wall Street for some time. The biggest source of frustration for income investors, however, is likely the 2024 dividend cut from 48 cents to 25 cents annually. Thanks to the nature of dividend yield calculations, where annual payouts are expressed as a percentage of current share prices, the flop in WBA stock makes its smaller dividend still “big” by this measure. But don’t be fooled by the big payout that is roughly five times the typical S&P 500 dividend. The company reported another deep quarterly loss in its fiscal second quarter report about a month ago (which included the withdrawal of all 2025 forward guidance), so Walgreens is hardly out of the woods just yet.
LyondellBasell Industries N.V. (LYB)
Dividend yield: 9.1%
LyondellBasell is a petrochemicals company that is one of the world’s largest producers of plastics and resins. It’s also the poster child for policy-related uncertainty, as LYB recently announced first-quarter earnings for 2025 that showed a decrease in total sales and net income from the previous year, alongside a significant drop in earnings per share as customers got defensive and pulled back. Shares are down about 40% in the last 12 months thanks to these recent operating challenges. What’s more, the risk of inflationary pressures that could eat further into the bottom line have made these challenges even more pronounced on Wall Street. LyondellBasell’s annualized dividend for 2025 is higher than its projected earnings, though fiscal year 2026 forecasts look a bit better based on optimism the short-term pressures will not last. That said, the big dividend of this chemicals leader is anything but a slam dunk if economic challenges continue in the materials sector.
Dow Inc. (DOW)
Dividend yield: 9.3%
With a similar story, materials giant Dow has the largest annualized yield of any S&P 500 component after its quarterly payment of 70 cents per share in March. Unfortunately, that payout is likely cold comfort to many stockholders, as shares of DOW have been cut in half over the last 12 months. A big reason for the decline is that as one of the largest chemical firms on the planet, economic and trade uncertainty have weighed on its orders. There’s also the hangover of a complex corporate structure, after a marriage and divorce, respectively, with DuPont de Nemours Inc. (DD) and agricultural chemicals firm Corteva Inc. (CTVA) in recent years. Earnings per share are currently well behind what DOW pays in dividends, so investors should brace for a possible dividend cut if the financial situation doesn’t change. That said, right now Dow Inc. still ranks as a top S&P 500 dividend stock … as long as it doesn’t announce any changes.
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9 Highest Dividend-Paying Stocks in the S&P 500 originally appeared on usnews.com
Update 05/20/25: This story was published at an earlier date and has been updated with new information.