Below is a list of 10 highest dividend yielding stocks in the S&P 500. Investors should be conscious of the risks investing in high yielding stocks and look past the yields to understand the risk associated with each company.
An important risk for these companies is that the market could be pricing in the fact that the divided will be cut. As the average dividend yield S&P 500 is 1.85% across 500 companies. Contrast this with Nasdaq which has an average dividend yield of 1%.
Interesting Take Aways from these highest dividend Stocks in S&P 500
- Understandably there are the large cap Energy stocks which prices have been dampened from the decline in oil prices.
- Telecommunications and Utilities are strongly represented as these 2 sectors are known for their income and defensive quality.
- There are also financial stocks. Investors add extra level of comfort by cross checking their book value multiples. If the stocks is trading below book, then either it is underpriced or market is pricing in there will be write downs from bad loans.
|Noble Corporation plc||NE||Energy||8.60%|
|Frontier Communications Corporation Class B||FTR||Telecommunication Services||6.10%|
|CenturyLink Inc.||CTL||Telecommunication Services||6.00%|
|Iron Mountain Inc.||IRM||Financials||5.50%|
|AT&T Inc.||T||Telecommunication Services||5.50%|
|Mattel Inc.||MAT||Consumer Discretionary||5.40%|
|Realty Income Corporation||O||Financials||4.80%|
|Philip Morris International Inc.||PM||Consumer Staples||4.80%|
|American Airlines Group Inc.||AAL||Industrials||4.80%|
|TECO Energy Inc.||TE||Utilities||4.70%|
|CenterPoint Energy Inc.||CNP||Utilities||4.70%|
|Health Care REIT Inc.||HCN||Financials||4.60%|
|Williams Companies Inc.||WMB||Energy||4.50%|
|People’s United Financial Inc.||PBCT||Financials||4.50%|
|Kinder Morgan Inc Class P||KMI||Energy||4.50%|