Which S&P 500 stocks pay the highest dividends?
Altria Group, Inc. (NYSE:MO), AT&T Inc. (NYSE:T), and Verizon Communications Inc. (NYSE:VZ) are some of the highest-paying dividend stocks in the S&P 500 among others that are discussed below.
Stock | Trailing annual dividend yield* |
---|---|
Crown Castle Inc. (CCI) | 5.9% |
Pfizer Inc. (PFE) | 5.9% |
Boston Properties Inc. (BXP) | 6.2% |
Kinder Morgan Inc. (KMI) | 6.2% |
Company | Dividend Yield |
---|---|
Franklin BSP Realty Trust Inc. (FBRT) | 11.60% |
Angel Oak Mortgage REIT Inc (AOMR) | 11.58% |
Altria Group Inc. (MO) | 9.79% |
Washington Trust Bancorp, Inc. (WASH) | 9.16% |
Dividend Stock | Current Dividend Yield* | Analysts' Implied Upside* |
---|---|---|
Johnson & Johnson (JNJ) | 3.1% | 25.3% |
Merck & Co. Inc. (MRK) | 2.4% | 10.6% |
Chevron Corp. (CVX) | 4% | 30.8% |
Coca-Cola Co. (KO) | 3.3% | 18.1% |
Ticker | Name | Annual dividend yield |
---|---|---|
RDIV | Invesco S&P Ultra Dividend Revenue ETF | 4.87% |
SPYD | SPDR Portfolio S&P 500 High Dividend ETF | 4.49% |
FDL | First Trust Morningstar Dividend Leaders Index Fund | 4.36% |
DJD | Invesco Dow Jones Industrial Average Dividend ETF | 4.25% |
- ARMOUR Residential REIT – 20.7%
- Orchid Island Capital – 17.8%
- AGNC Investment – 14.8%
- Oxford Square Capital – 13.7%
- Ellington Residential Mortgage REIT – 13.2%
- SLR Investment – 11.5%
- PennantPark Floating Rate Capital – 10%
- Main Street Capital – 7%
Does the S&P 500 Pay Dividends? The S&P 500 is an index, so it does not pay dividends; however, there are mutual funds and exchange-traded funds (ETFs) that track the index, which you can invest in. If the companies in these funds pay dividends, you'll receive yours based on how many shares of the funds you hold.
Ticker | Name | Dividend Safety |
---|---|---|
ENB | Enbridge | Safe |
EPD | Enterprise Products Partners | Safe |
T | AT&T | Borderline Safe |
WHR | Whirlpool | Borderline Safe |
Stock | Dividend yield | Dividend growth streak |
---|---|---|
Procter & Gamble Co. (PG) | 2.4% | 68 years |
3M Co. (MMM) | 6.5% | 65 years |
Coca-Cola Co. (KO) | 3.3% | 61 years |
Johnson & Johnson (JNJ) | 3.2% | 61 years |
Stock | Dividend yield |
---|---|
Coca-Cola Co. (KO) | 3.3% |
Johnson & Johnson (JNJ) | 3.4% |
Prologis Inc. (PLD) | 3.7% |
Realty Income Corp. (O) | 5.9% |
Can you live off dividends forever?
Creating a diversified portfolio, understanding the implications of dividend reinvestment plans (DRIPs) and being aware of tax efficiency are vital steps in maximizing dividend income while minimizing risks. The dream of living off dividends is attainable with the right financial planning and investment strategy.
Stock | Market Capitalization | 12-month Trailing Dividend Yield |
---|---|---|
Gladstone Investment Corp. (GAIN) | $500 million | 6.9% |
Modiv Industrial Inc. (MDV) | $112 million | 7.7% |
LTC Properties Inc. (LTC) | $1.3 billion | 7.2% |
Realty Income Corp. (O) | $44 billion | 6.4% |
If you buy a stock one day before the ex-dividend, you will get the dividend. If you buy on the ex-dividend date or any day after, you won't get the dividend. Conversely, if you want to sell a stock and still get a dividend that has been declared, you need to hang onto it until the ex-dividend day.
Fund (ticker) | 5-year annual returns | Expense ratio |
---|---|---|
Fidelity ZERO Large Cap Index (FNILX) | 14.6% | 0% |
Vanguard S&P 500 ETF (VOO) | 14.5% | 0.03% |
SPDR S&P 500 ETF Trust (SPY) | 14.5% | 0.095% |
iShares Core S&P 500 ETF (IVV) | 14.5% | 0.03% |
Symbol | Name | Dividend Yield |
---|---|---|
PEX | ProShares Global Listed Private Equity ETF | 12.14% |
SPYI | NEOS S&P 500 High Income ETF | 12.10% |
BTF | Valkyrie Bitcoin and Ether Strategy ETF | 12.08% |
SDIV | Global X SuperDividend ETF | 12.06% |
Dividend Summary
There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 1.0.
The Coca-Cola Company ( KO ) pays dividends on a quarterly basis. The Coca-Cola Company ( KO ) has increased its dividends for 52 consecutive years. This is a positive sign of the company's financial stability and its ability to pay consistent dividends in the future.
Stock Name | Sub-Sector | 1M Return (%) |
---|---|---|
Adani Enterprises Ltd | Commodities Trading | 27.14 |
Adani Ports and Special Economic Zone Ltd | Ports | 25.25 |
Bharat Petroleum Corporation Ltd | Oil & Gas – Refining & Marketing | 22.19 |
Hero MotoCorp Ltd | Two Wheelers | 18.34 |
Dividend yield of at least 2.7%.
Investors looking for monthly dividend income are likely looking for a yield that is substantially higher than the market average. Stocks with a dividend yield of 2.7% or higher have payouts that are more than a percentage point higher than the S&P 500 average yield of 1.64%.
Standard & Poor's debuted its first equity index in 1923, although the S&P 500 as we know it today didn't hit the street until 1957. Of the 500 constituents, more than 400 companies in the S&P 500 are dividend payers. Not all of the components, however, offer stellar yields or consecutive dividend increases.
What is the S&P 500 monthly return with dividends?
S&P 500 Monthly Total Return is at 3.22%, compared to 5.34% last month and 3.67% last year. This is higher than the long term average of 0.72%. The S&P 500 Monthly Total Return is the investment return received each month, including dividends, when holding the S&P 500 index.
The average yearly return of the S&P 500 is 10.56% over the last 100 years, as of the end of February 2024. This assumes dividends are reinvested. Dividends account for about 40% of the total gain over this period. Adjusted for inflation, the 100-year average stock market return (including dividends) is 7.4%.
Despite their storied histories, they cut their dividends. 9 In other words, dividends are not guaranteed and are subject to macroeconomic and company-specific risks. Another downside to dividend-paying stocks is that companies that pay dividends are not usually high-growth leaders.
How much is Coca-Cola's dividend? KO pays a dividend of $0.48 per share. KO's annual dividend yield is 3.21%.
S.No. | Name | CMP Rs. |
---|---|---|
1. | Spright Agro | 29.45 |
2. | Jai Balaji Inds. | 998.15 |
3. | Waaree Renewab. | 2380.20 |
4. | Insolation Ener | 1749.65 |
References
- https://finance.yahoo.com/news/14-money-making-stocks-invest-134504176.html
- https://www.aaii.com/journal/article/dividend-safety-signs-and-warning-flags
- https://www.fool.com/investing/2023/03/14/3-reasons-to-avoid-dividend-paying-stocks/
- https://www.bankrate.com/investing/best-s-p-500-index-funds/
- https://medium.com/swlh/the-dangerous-illusion-of-free-money-as-an-investor-bef561e49efa
- https://finance.yahoo.com/news/living-off-interest-1-million-164122384.html
- https://www.nerdwallet.com/article/investing/sp-500-etfs
- https://tradethatswing.com/average-historical-stock-market-returns-for-sp-500-5-year-up-to-150-year-averages/
- https://www.screener.in/screens/801676/6-months-double/
- https://finance.yahoo.com/quote/EPD/
- https://www.tipranks.com/stocks/epd/forecast
- https://investor.vanguard.com/investor-resources-education/taxes/buying-dividend
- https://www.fool.com/investing/2024/04/11/is-coca-cola-stock-a-screaming-buy-after-its-big/
- https://stockanalysis.com/stocks/epd/dividend/
- https://www.nerdwallet.com/article/investing/how-to-invest-dividend-stocks
- https://etfdb.com/compare/dividend-yield/
- https://www.dividend.com/stocks/energy/oil-gas-coal/midstream-oil-gas/epd-enterprise-products-partners-lp/
- https://www.tipranks.com/stocks/epd/ownership
- https://www.indmoney.com/articles/top-5-stocks-to-invest
- https://www.fool.com/investing/2024/03/18/is-enterprise-products-partners-the-best-dividend/
- https://www.cnbc.com/2024/04/21/wall-street-analysts-pick-these-3-dividend-stocks-for-higher-returns.html
- https://en.wikipedia.org/wiki/Enterprise_Products
- https://www.trading212.com/learn/dividends/how-to-create-a-dividend-portfolio
- https://lyonswealth.com/blog-details/how-much-money-do-i-need-to-invest-to-make-3000
- https://portfolioslab.com/tools/stock-comparison/EPD/ENB
- https://www.tsinetwork.ca/daily-advice/dividend-stocks/heres-how-dividend-capture-strategy-returns-work-and-whether-you-can-realistically-profit-from-them/
- https://ycharts.com/indicators/sp_500_monthly_total_return
- https://www.stoddardfinancial.net/dividend-versus-growth-investments/
- https://money.usnews.com/investing/articles/high-paying-dividend-stocks-in-the-s-p-500
- https://money.usnews.com/investing/articles/dividend-kings-to-buy-and-hold
- https://www.dividendmax.com/united-states/nyse-arca/financial-services/vanguard-sandp-500-etf/dividends
- https://money.usnews.com/investing/articles/best-dividend-stocks-to-buy-this-year
- https://www.cnbc.com/2019/02/15/if-you-put-1000-dollars-in-coca-cola-in-2009-heres-what-youd-have-now.html
- https://www.investopedia.com/financial-edge/0812/how-to-live-off-your-dividends.aspx
- https://www.trackinsight.com/en/education/how-many-etfs-should-you-own
- https://www.investopedia.com/articles/basics/11/due-dilligence-on-dividends.asp
- https://www.nerdwallet.com/article/investing/high-dividend-etfs
- https://www.etf.com/sections/etf-basics/dividend-etfs-vs-stocks-comparison-guide
- https://www.fool.com/investing/stock-market/types-of-stocks/dividend-stocks/how-to-invest-in-dividend-stocks/
- https://finance.yahoo.com/news/genius-ways-1-000-month-105500970.html
- https://www.fidelity.com/learning-center/investment-products/etf/risks-with-etfs
- https://www.fool.com/investing/2024/01/27/want-safe-income-this-stock-raised-its-dividend-in/
- https://ir.aboutamazon.com/faqs/default.aspx
- https://www.investopedia.com/articles/exchangetradedfunds/08/etf-taxes-introduction.asp
- https://money.usnews.com/investing/articles/best-monthly-dividend-stocks-to-buy-now
- https://www.zacks.com/stock/research/EPD/price-target-stock-forecast
- https://money.usnews.com/investing/articles/best-dividend-etfs-to-buy-now
- https://www.investopedia.com/dividend-etf-vs-s-and-p-500-7968097
- https://www.forbes.com/sites/investor-hub/article/best-monthly-dividend-etfs/
- https://www.koyfin.com/company/ko/dividends/
- https://www.usatoday.com/money/blueprint/investing/best-monthly-dividend-stocks/
- https://www.ml.com/articles/what-dividend-stocks-can-offer.html
- https://finance.yahoo.com/news/500-every-month-passive-income-130041730.html
- https://www.screener.in/screens/300202/stocks-with-good-1-month-returns/
- https://www.ubt.com/learning-center/blogs/weighing-pros-and-cons-dividends
- https://www.suredividend.com/get-rich-dividends/
- https://www.investopedia.com/articles/investing/082015/3-biggest-misconceptions-dividend-stocks.asp
- https://www.livemint.com/market/stock-market-news/stock-market-today-trade-setup-for-nifty-50-to-sensex-7-stocks-to-buy-or-sell-on-tuesday-april-23-11713836370381.html
- https://seekingalpha.com/article/4653038-enterprise-products-partners-when-dividend-growth-is-safe
- https://www.fool.com/retirement/2017/06/29/when-should-you-add-dividend-stocks-to-your-retire.aspx
- https://www.suredividend.com/safest-dividend-stocks/
- https://companiesmarketcap.com/enterprise-products/total-debt/
- https://www.tickertape.in/blog/nifty-50-stocks-with-1-month-high-return/
- https://www.simplysafedividends.com/world-of-dividends/posts/3-top-25-high-dividend-stocks-yielding-4-to-10
- https://fortune.com/recommends/investing/what-are-dividends/
- https://www.investopedia.com/articles/02/110802.asp
- https://www.simplysafedividends.com/world-of-dividends/posts/2-how-to-build-a-dividend-portfolio
- https://www.schwab.com/learn/story/reaching-yield-income-investments-bring-risk
- https://etfdb.com/compare/highest-5-year-returns/
- https://finance.yahoo.com/news/value-investors-buy-enterprise-products-144016200.html
- https://money.usnews.com/investing/articles/what-is-a-dividend-and-how-do-dividend-stocks-work
- https://www.investopedia.com/articles/markets-economy/091816/aapl-apple-dividend-analysis.asp
- https://www.tipranks.com/stocks/ko/dividends
- https://www.investopedia.com/articles/markets/071616/history-sp-500-dividend-yield.asp
- https://www.screener.in/screens/355766/highest-return-in-1-year/
- https://walletinvestor.com/stock-forecast/epd-stock-prediction
- https://money.usnews.com/investing/articles/dividend-stocks-to-buy-and-hold-forever
- https://www.tipranks.com/stocks/ko/forecast
- https://www.bankrate.com/investing/highest-yielding-reits/
- https://www.forbes.com/advisor/investing/dividend-yield/
- https://www.schwab.com/etfs/types/dividend-etfs
- https://www.robomarkets.com/blog/stock-market/top-stocks/top-10-monthly-dividend-stocks/
- https://www.cabotwealth.com/daily/dividend-stocks/how-long-do-you-have-to-own-a-stock-to-get-the-dividend
- https://www.vectorvest.com/blog/retirement/how-to-retire-on-dividends/
- https://craft.co/enterprise-products-partners/competitors
- https://www.titan.com/articles/income-stocks
- https://seekingalpha.com/article/4652634-how-to-live-off-dividends-forever
- https://finance.yahoo.com/news/much-money-live-entirely-off-204845865.html
- https://www.suredividend.com/pros-cons-dividend-investing/
- https://www.dividend.com/how-to-invest/the-sp-500-a-dividend-overview/
- https://www.nasdaq.com/articles/passive-income:-7-ways-to-make-an-extra-$1000-a-month
- https://www.fool.com/investing/2023/12/14/want-200-monthly-dividend-income-2024-invest-27000/
- https://finance.yahoo.com/news/enterprise-products-partners-lps-dividend-100424609.html
- https://www.fool.com/investing/2018/07/13/ask-a-fool-is-a-10-dividend-yield-too-good-to-be-t.aspx
- https://fortune.com/recommends/investing/what-is-income-investing/
- https://finance.yahoo.com/news/16-best-dividend-stocks-time-114336368.html
- https://www.dividendmax.com/united-states/nyse/food-and-drug-retailers/mcdonalds-corp/dividends
- https://finance.yahoo.com/news/heres-why-enterprise-products-partners-145010049.html
- https://www.fool.com/investing/2024/03/24/you-can-do-better-than-sp-500-buy-this-etf/
- https://www.morningstar.com/stocks/10-best-dividend-stocks
- https://www.irs.gov/taxtopics/tc404