5 Highest Yielding Dividend Stocks in the S&P 500

The first thing that comes to mind when we speak about the S&P 500 is the biggest tech companies, high valuations, and fastest-moving giants. The S&P 500 is packed with the biggest and the best companies, celebrated for the price swings, cash flow, and high upside potential. The index is massive and is often associated with the economic environment. LyondellBasell Industries NV (NYSE:LYB), United Parcel Service (NYSE:UPS), Pfizer (NYSE: PFE), Alexandria Real Estate Equities Inc. (NYSE: ARE) and ConAgra Brands (NYSE:CAG) are the highest-yielding dividend stocks in the S&P 500. 

These are reliable dividend payers with massive cash flows and a strong record of increasing dividends. These five names stand out in the index, and each one comes with a juicy yield and a sturdy balance sheet.

LyondellBasell Industries NV

Dividend yield: 12.81%

LyondellBasell Industries NV is a multinational chemical company headquartered in Houston. The company is the largest licensor of polypropylene and polyethylene technologies.

It offers the juiciest dividend in the S&P 500 at 12.8%, and the company has increased the payout for 11 years. No other member in the S&P 500 has a double-digit percentage yield. However, the stock has remained beaten down this year and has lost 41% this year. 

For the third quarter, the company reported a loss of $890 million, down from the profit of $573 million in the same quarter the prior year. The net sales came in at $7.7 million, down 10% from the prior year quarter. It generated $983 million in cash from operations and continues to spend on capital expenditure. It distributed $443 million to shareholders through dividends and buybacks. For the fourth quarter, it expects lower operating rates and year-end seasonality to improve results. 

The company is taking steps to navigate the challenging environment, but there’s no way to know how long the cyclical pressure will continue. However, if dividend is your main concern, LYB stock wouldn’t disappoint. 

Alexandria Real Estate Equities Inc.

Dividend yield: 9.73%

Alexandria Real Estate Equities Inc. is a Real Estate Investment Trust (REIT) that invests in office buildings and laboratories to lease to life science and technology industries. It has an attractive yield of 9.73% and is down 44% year-to-date, making it a buying opportunity. 

The company reported third-quarter earnings and missed expectations on the top and bottom lines. The revenue was down by 5%, while the adjusted funds from operations (FFO) dropped 7%. Its management has lowered guidance for the adjusted FFO this year to $9.01 instead of the previously expected $9.26. The occupancy rates also dropped in the quarter. Despite the negative results, the stock is worth considering for its yield.

It caters to life sciences and biotech customers, which is an industry expected to grow at a double-digit rate. It caters to businesses across Boston, New York, San Francisco, and Southern California. 

Further, it continues to generate FFO that helps cover the dividends. Hence, its 9.7% yield should be safe. Its balance sheet also looks stable for now. Ultimately, the company caters to businesses in the industry that play an essential role and are poised for strong growth in the next decade.

Conagra Brands Inc.

Dividend yield: 8.24%

Conagra Brands is a consumer packaged goods company that manufactures and sells products under various brand names across restaurants, supermarkets and food service establishments. The company makes well-known packaged foods like Birds Eye, Healthy Choice, Slim Jim, and Duncan Hines. 

It has a forward dividend yield of 8.24% and has a solid dividend record, paying dividends each quarter since 1976. The company’s stock price is down 38% in 2025, which could be the reason behind its high yield.

The company’s top and bottom lines are down and the negative impact of mergers and acquisitions has led to trouble. It recently reported first-quarter results and saw a 5.8% drop in sales to $2.6 billion. The organic net sales dropped 0.6%, while the EPS was $0.34, down 64.9%. 

For fiscal 2026, the management is aiming for an EPS in the range of $1.70 and $1.85 and a 1% organic sales growth. Low growth, tariffs, and inflationary pressures have led to the recent drop in numbers. The company is in the midst of a turnaround, and if it can manage to lower debt and boost profits, we could see the share price move upwards.

Pfizer Inc.

Dividend yield: 7.05%

Pharmaceutical giant Pfizer has become a household name after the pandemic. The company gained massive recognition due to its vaccines, but the recent revenue numbers have declined. The company has a juicy forward dividend yield of 7.05%, which offsets the stock decline. PFE stock is down 8.34% in 2025 and is exchanging hands for $24.39. 

The company reported third-quarter results last week, and the EPS dropped 18% year over year. While the earnings decrease is due to a one-time adjustment for a research and development charge for a licensing deal with 3SBio, investors weren’t happy with the results. Despite the drop in EPS, the management has raised full-year EPS guidance to $3 to $3.15, up from the previous guidance of $2.90 to $3.10. 

On the positive side, the company’s cost-savings efforts are on track. It aims to deliver $4.5 billion in cumulative net cost savings by the end of this year and aims to produce around $7.7 billion in savings by the end of 2027. The cost savings will allow the management to increase dividends in the coming years. The CFO is committed to maintaining and growing dividends over time. 

United Parcel Service 

Dividend yield: 7.05%

When it comes to dividend yield, United Parcel Service stands in line with Pfizer Inc. The world’s largest package delivery company has a yield of 7.05% and has increased dividends for 15 consecutive years. The company’s share price is down 24% in 2025 and is exchanging hands for $93.06.

Trump’s tariffs have taken a negative toll on the business, and the management has seen a revenue decline. To handle the situation, the management has decided to move away from low-margin shipments it handles for Amazon (NASDAQ:AMZN) and focus on areas where it can see a higher margin, like healthcare and small business. This move could boost profitability in the long run, and the company generates enough free cash flow to continue rewarding investors. 

Since the company provides a service essential to everyday life, it is hard to replace. There’s little competition in the industry, and UPS has already carved a niche for itself. It provides a valuable service and is trying to turn around the business. The management has exited less desirable business lines and invested in technology to improve speed and efficiency. It has also trimmed staff to reduce costs, and I think the move will lead to higher revenue and lower costs.