9 Highest Dividend-Paying Stocks in the S&P 500
As if Wall Street wasn’t troubled enough, the market has been in turmoil across early June thanks to the resurgence of geopolitical unrest in the Middle East. Throw in continued uncertainty around White House trade policies and the specter of persistent inflation, and it’s easy to see why many investors remain decidedly “risk off” in their investing approach.
In an environment like this, it’s important to keep in mind that not all dividend stocks are low-risk investments. Yes, some are stable companies with reliable revenue that have steadily raised payouts year after year, but others are companies that have seen shares flop and currently pay dividends that add up to more than total annual earnings.
[Sign up for stock news with our Invested newsletter.]
This list of the highest-dividend-paying stocks in the S&P 500 has a bunch of companies in that latter camp, unfortunately. While they may offer significant payouts, there is also significant uncertainty that these dividends will remain in the future.
So as always, investors should carefully assess their risk tolerance and do additional research before buying any of these high-yield dividend stocks:
| Stock | Dividend yield |
| Conagra Brands Inc. (ticker: CAG) | 6.5% |
| United Parcel Service Inc. (UPS) | 6.6% |
| Edison International (EIX) | 6.7% |
| Altria Group Inc. (MO) | 6.9% |
| Pfizer Inc. (PFE) | 7.2% |
| Healthpeak Properties Inc. (DOC) | 7.2% |
| Alexandria Real Estate Equities Inc. (ARE) | 7.4% |
| LyondellBasell Industries NV (LYB) | 9.2% |
| Dow Inc. (DOW) | 9.5% |
Conagra Brands Inc. (CAG)
Dividend yield: 6.5%
Conagra is a leader in processed and packaged foods, from Vlasic pickles to Marie Callender’s frozen meals to Orville Redenbacher popcorn. Founded in 1919, it stands behind some of the most iconic brands in the grocery store. Unfortunately, the company has been riding a few quarters of earnings disappointments thanks to inflationary pressures eating into margins, coupled with competition that has drawn away customers. In fact, CAG posted a steep decline of about 6% in a single session back in February to show that even this seemingly solid consumer staples stock is not immune to volatility in 2025. Shares are down more than 20% this year, which has boosted the yield, but the good news is that payouts of $1.40 annually remain only about two-thirds of this year’s expected total earnings and thus quite sustainable in the near term.
United Parcel Service Inc. (UPS)
Dividend yield: 6.6%
UPS has taken it on the chin along with other logistics stocks as disruptions in trade and general business spending have naturally reduced the demand for shipping. What’s more, the firm is going through a public breakup with e-commerce king Amazon.com Inc. (AMZN) thanks to what it sees as very low-margin but high-volume shipping demands. As a result, the company has slashed 20,000 jobs and is expecting some modest declines in its overall business footprint as it voluntarily steps away from AMZN. Shares of UPS have slumped roughly 20% since Jan. 1 as Wall Street remains uncertain about what’s next, but it’s worth noting that UPS just provided shareholders its 15th year of consecutive dividend increases and remains a go-to shipping leader even without this business. Only time will tell if that’s the right move long term for UPS, however.
Edison International (EIX)
Dividend yield: 6.7%
Edison International, a regional utility in California serving an approximately 50,000-square-mile area, is a seemingly safe bet as electricity providers tend to have strong baseline demand and very little competition. However, shares hit their lowest level since 2020 in June thanks to continued operational challenges related to a fire five years ago. Most recently, that came in the form of an agreement to pay $82.5 million to cover damages from the Bobcat fire that ravaged Los Angeles County. Management has continued to pay the 82.75-cent quarterly dividend so far in 2025 and has made overtures about how any settlement won’t impact payouts. But clearly Wall Street is worried, based on the steep declines of roughly 40% since Jan. 1 for EIX stock.
Altria Group Inc. (MO)
Dividend yield: 6.9%
Altria is regularly a leader on any list of reliable dividend stocks, thanks to 56 years of consecutive dividend growth and regular revenue generated by its portfolio of leading tobacco brands like Marlboro and Virginia Slims. And interestingly, MO has been creeping down the list of the best S&P 500 dividend stocks lately in part because investors have boosted the stock 12% this year thanks to a flight to low-risk staples stocks. This makes it a rarity, with a huge yield and double-digit gains even as other companies on this list have big yields thanks to big troubles lately. With a generous payout and a strong history of driving long-term value for shareholders, MO is an income stock worth watching.
[Read: 9 of the Best Bond ETFs to Buy Now.]
Pfizer Inc. (PFE)
Dividend yield: 7.2%
Pfizer is a Big Pharma stock with big challenges lately, as evidenced by the fact that its short-term returns over the past 12 months are negative and its medium-term results show a five-year decline of more than 20% dating back to summer 2020. Declining revenue and challenges with its product pipeline seem to be the norm lately, with prominent stumbles in the obesity drug marketplace causing many investors to wonder about PFE’s long-term relevance. That said, Pfizer’s dividend is quite sustainable when compared with annual earnings, and some investors are starting to think the negativity is now fully priced in at current share prices. Just remember that a market-wide decline or a continued drumbeat of negative headlines may result in continued declines, however unfair they may be for this high-yield stock. But if you’re patient, the 7%-plus yield does provide a bit of a hedge.
Healthpeak Properties Inc. (DOC)
Dividend yield: 7.2%
DOC operates one of the largest networks of health care real estate in the nation after a massive “merger of equals” with Physicians Realty Trust that closed at the beginning of 2024 and now spans 700 properties with about 49 million square feet of space. Thanks in part to this scale, it is one of the highest-dividend-paying stocks in the S&P 500 with a model that passes on a large share of its rents to stockholders. Like other real estate stocks on Wall Street, the prospect of lower borrowing costs thanks to the interest rate outlook in 2025 has helped lift shares at the start of the year. Still, the fact that Federal Reserve officials continue to stand pat on elevated rates has caused the stock to give up those gains, and it currently sits on a loss of about 15% year to date. DOC’s overall business is pretty recession-proof, given the reliable nature of health care spending, so while there is indeed risk, it could be a bit more stable than other high-yield stocks on this list.
Alexandria Real Estate Equities Inc. (ARE)
Dividend yield: 7.4%
Health care office space provider Alexandria Real Estate Equities 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 reported a rocky first quarter in April thanks to the impact of inflation and tariffs on its long-term construction plans to build out its portfolio. Shares are down more than 25% this year to make it one of the 25 worst performers in the S&P 500 since Jan. 1, and that flop has boosted the company’s yield as a result. Financial challenges like this are never something to celebrate however, and income investors should tread lightly despite the high dividend yield.
LyondellBasell Industries NV (LYB)
Dividend yield: 9.2%
LyondellBasell is a petrochemicals company that is one of the world’s largest producers of plastics and resins. It’s also one of many examples of policy-related uncertainty that has caused businesses to freeze as they wait to see what will happen with trade, inflation and other uncertainties. LYB recently announced first-quarter earnings in April that showed a significant decrease in sales and net income from the previous year, with total earnings of just 54 cents — not even close to covering the $1.37 quarterly dividend it declared around the same time. That said, the dividend was actually up from $1.34 per share the prior quarter, so management seems to be confident it will weather the short-term disruptions. That said, the big dividend of this chemicals leader is anything but a sure thing if economic challenges continue in the materials sector and continue to weigh on LYB results.
Dow Inc. (DOW)
Dividend yield: 9.5% With a familiar story in the era of trade wars and uncertainty, materials giant Dow has the largest annualized yield of any S&P 500 component after a rough decline of of 45% or so in the past 12 months. That’s thanks to weak customer demand, strong competition and smaller margins as a result of inflationary pressures. Its current quarterly payment is 70 cents per share, however, paid in June to affirm its sky-high annualized yield. The company has managed to keep its payout steady for the last six years in the wake of its 2019 three-way spinoff as part of a major corporate restructuring, but even the rosiest estimates are for earnings to cover only about half of those yearly distributions. Dow Inc. still ranks as a top S&P 500 dividend stock, but it’s realistic to think a dividend cut — and therefore more downside to the stock price — may be around the corner.
More from U.S. News
The 7 Best Data Center Stocks, ETFs and REITs to Buy Right Now
6 of the Best AI ETFs to Buy for 2025
7 Best Defense Stocks to Buy Now
9 Highest Dividend-Paying Stocks in the S&P 500 originally appeared on usnews.com
Update 06/18/25: This story was published at an earlier date and has been updated with new information.