Top 10 High-Dividend S&P 500 Stocks: High Yields with Potential Risks
Calculating dividend yield is as simple as pie: just divide the dividend per share by the current stock price and multiply by 100. For example, if a company with a $20 stock price pays out $1 a year, the calculated dividend yield is 5%.
But here's the catch - the math often hides a sneaky trap. Many high-yielding stocks get their juicy dividends not from growing payouts, but from tumbling stock prices.
Imagine that company I mentioned earlier - they paid a $1 dividend last year, the stock price was $100, and the dividend yield was just 1%. Now, suddenly, the yield jumps to 5%! Sounds great, but who knows the pain investors felt watching their investments slide.
So, these 10 $S&P 500(.SPX)$ stocks with sky-high dividend yields, up to 6% or more, may have some hidden risks. But hey, they still have investment potential! $Comerica(CMA)$ $Boston Properties(BXP)$ $Crown Castle(CCI)$ $Verizon(VZ)$ $Walgreens Boots Alliance(WBA)$
1. $Pfizer(PFE)$
Their stock price has almost halved since the pandemic peak in 2021. But good news, their dividends are still steady. In January, they even hiked their payout by a penny to 42 cents, accounting for about 70% of this year's predicted earnings.
2. $KeyCorp(KEY)$
With all the banking turmoil and bankruptcies, their stock's been under pressure. Down over 20% this year while the S&P 500 soared over 40%. But their dividends are safe, way below their expected earnings.
3. $AT&T Inc(T)$
They're like a lumbering elephant, but their broadband internet service is chugging along, growing 7% in the first quarter. Plus, they have a $17 billion cash flow cushion for dividends and growth investments. AT&T pays a quarterly dividend of 27.75 cents per share, accounting for less than 60% of their earnings. No worries there!
4. $Healthpeak Properties, Inc(DOC)$
After merging with Physicians Realty Trust in March, they're now a diversified medical real estate giant. With an aging population and increasing healthcare needs, this stock will benefit once we get through the current high-interest rate environment.
5. $Altria(MO)$
They invested $1.8 billion in Cronos Group a few years back. Not only do they offer a high dividend yield, but they've also increased their dividends for 55 consecutive years! Impressive, huh?
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