Investing

These are the 5 Biggest Dividend Yields in the S&P 500 Right Now

Lee Jackson

Published: February 10, 2024 10:09 am

Investors love dividend stocks because they provide dependable income and give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio includes dividend income and stock appreciation.

We screened our 24/7 Wall St. research database, looking for companies in the S&P 500 that were rated Buy at major Wall Street firms that also paid the highest dividends in the venerable index.

Two of the five are in the energy business. They offer investors some excellent entry points considering the potential for the current geopolitical volatility due to fighting in the Middle East. We listed the stocks in order of the highest dividend.

Altria

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This maker of tobacco products offers value investors a great entry point now and pays a massive 9.40% dividend. Altria Group Inc. (NYSE: MO) is the parent company of:

• Philip Morris USA (cigarettes)
• UST (smokeless)
• John Middleton (cigars)
• Ste. Michelle Wine Estates
• Philip Morris Capital Corp

PMUSA enjoy a 51% share of the US cigarette market, led by its top cigarette brand, Marlboro.

Altria also owns over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer, which some feel is worth more than $10 billion and maybe a segment of the company that could be sold. Given the public relations disaster the company has gone through over the last year, it could be on the chopping board.

Last June, the company purchased NJOY Holdings, which makes electronic cigarettes and vaping products, for a consideration of $2.75 billion.

Devon Energy

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This energy company utilizes the variable dividend strategy to pay investors a 6.87% dividend. Devon Energy Corporation (NYSE: DVN) an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs) in the United States and Canada. It operates approximately 19,000 wells.

The company also offers midstream energy services, including:

• Gathering
• Transmission
• Processing
• Fractionation
• Marketing to natural gas producers, NGLs, crude oil, and condensate producers through its natural gas pipelines, plants, and treatment facilities

Production is weighted towards crude oil, while growth opportunities are liquids-focused – anchored by:

• The Delaware Basin,
• SCOOP/STACK,
• Eagle Ford Shale,
• Canadian Oil Sands
• Barnett Shale

Devon also owns equity in the publicly traded midstream MLP, EnLink Midstream, LLC. (NYSE: ENLC).

Kinder Morgan

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This is another one of the top energy stocks and remains a favorite across Wall Street, paying a dependable 6.41% dividend. Kinder Morgan, Inc. (NYSE: KMI) is an energy infrastructure company in North America.

The company operates through:

• Natural Gas
• Products
• Terminals
• CO2 segments.

The Natural Gas Pipelines segment:

• Owns and operates the interstate and intrastate natural gas pipeline and underground storage systems
• Natural gas gathering systems and natural gas processing and treating facilities
• Natural gas liquids fractionation facilities and transportation systems
• Liquefied natural gas liquefaction and storage facilities

The Products Pipelines segment owns and operates:

• Refined petroleum products
• Crude oil and condensate pipelines
• Associated product terminals
• Petroleum OKEpipeline transmit facilities

The Terminals segment owns and operates liquids and bulk terminals that store and handle various commodities, including:

• Gasoline
• Diesel fuel
• Chemicals
• Ethanol
• Metals
• Petroleum coke
• Owns tankers

Lastly, the CO2 segment produces, transports, and markets CO2 to recover and produce crude oil from mature oil fields and owns interests in/or operates oil fields and gasoline processing plants, as well as a natural oil pipeline system in West Texas. It holds and runs approximately 83,000 miles of pipelines and 144 terminals.

Whirlpool

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The potential for continued new home sales to increase is a big positive for this company, which pays a dependable 6.28% dividend. Whirlpool Corporation (NYSE: WHR) manufactures and markets home appliances and related products. It operates through four segments: North America, Europe, Middle East and Africa; Latin America; and Asia.

The company’s principal products include:

• Refrigerators
• Freezers
• Ice makers
• Refrigerator water filters
• Laundry appliances and related laundry accessories
• Cooking and other small domestic appliances
• Dishwasher associated appliances and accessories
• Mixers.

Whirlpool markets and distributes its products primarily under these brands.

• Whirlpool
• Maytag
• KitchenAid
• JennAir
• Amana
• Roper
• Admiral
• Affresh
• Gladiator
• Speed Queen
• Hotpoint
• Bauknecht
• Indesit
• Ignis
• Laden
• Privileg
• KIC
• Consul
• Brastemp
• Acros
• Ariston
• Diqua
• Royalstar

Verizon Communications

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This is a top telecommunications company that offers tremendous value at current levels and pays a big 6.26% dividend . Verizon Communications, Inc (NYSE: VZ) is one of the largest US telecom companies. It provides wireless and wireline service to retail, enterprise, and wholesale customers.

The company’s wireless network serves approximately 120 million mobile connections with 115 million postpaid subscribers. Verizon’s wireline business has undergone a period of secular decline due to wireless substitution and cable competition.

Verizon also provides converged communications, information, and entertainment services over America’s most advanced fiber-optic network and delivers integrated business solutions to customers worldwide.