Saturday, December 5, 2020

7 Highest-Paying Dividend Stocks in the S&P 500

As we begin to wind down another year, U.S. News Invested goes back to basics with year-end rebalancing to provide recommendations on their picks of seven of the best stocks that in these pandemic times provide the best of both worlds -- the growth of equities and the safety of bonds.  You guessed it! It's their latest list, from yesterday's edition, of the highest paying dividend stocks in the S&P.  Enjoy the weekend.  


December 4, 2020

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U.S. News & World Report

Invested

Advice, rankings and stock market news for investors.



Happy Friday, investors! The world's largest movie theater chain says it's in real danger of going bankrupt.

TODAY'S FEATURED STOCK STORY

When looking for the highest dividend paying stocks, investors should start by looking at "dividend yield" – a simple calculation that divides the annual payout by the share price.

It's a helpful calculation for income investors, since some stocks trade for much higher share prices and an ostensibly large dividend of a few dollars per share may not actually count for much against the total amount you have invested in that company. Meanwhile, a small dividend of just 10 cents counts for an impressive 10% return on your investment if shares are only $1 apiece.

If you're looking for stocks with the highest dividend yield, here are the seven leading stocks in the S&P 500 that all pay more than 7% back in annual dividends:

1. Kinder Morgan (ticker: KMI). Though many energy stocks have been under pressure to cut back on dividends amid the volatility of 2020, energy infrastructure stock Kinder Morgan actually increased its quarterly dividend by 5% this year.

2. Williams Cos. (WMB). Shares of pipeline operator Williams Cos. offer a relatively stable energy investment with a robust dividend. The company generates consistent cash flow thanks to the highly regulated nature of its rates structure and long-term 

contracts.


Seven highest dividend paying stocks in the S&P 500:

  • Kinder Morgan (KMI)
  • Williams Cos. (WMB)
  • Altria Group (MO)
  • Exxon Mobil Corp. (XOM)
  • Iron Mountain (IRM)
  • Lumen Technologies (LUMN)
  • Oneok (OKE)



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