Don’t Look Now: 4 S&P 500 Giants Pay 6% and Higher Dividends
Most investors settle for the S&P 500's average 1.3% yield without realizing a handful of index giants quietly pay four times that amount, and a few of them have raised their dividends for decades straight.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Investors love dividend stocks because they provide dependable passive income streams and an excellent 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 portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the stock market’s ups and downs, many people need reliable passive income streams to supplement income from employment or other sources such as Social Security and pensions.
The S&P 500 stock market index tracks the performance of the 500 biggest companies in the United States. It’s considered a top indicator of the U.S. stock market’s health. The venerable index is market-capitalization-weighted and tracks the 500 leading publicly traded companies in the U.S. Typically, larger companies significantly impact the index. The roaring success of the mega-cap Magnificent 7 stocks over the past few years attests to that.
We screened the venerable index for dividend-paying stocks with yields of 6% or higher, and we found four that could be total-return home runs for patient growth-and-income investors. Three are rated Buy and one is rated Hold; all make sense for investors seeking quality passive income streams from companies that have delivered just that for years.
Why Do We Cover the Highest-Yielding S&P 500 Dividend Stocks?
Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past 50 years (1973 to 2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
Altria
Altria (NYSE:MO | MO Price Prediction) is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products. This tobacco stock offers value investors a solid entry point and a 6.52% dividend. Altria manufactures and sells smokable and oral tobacco products in the United States primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
The company primarily sells cigarettes under the Marlboro brand, as well as:
- Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
- Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
- on! Oral nicotine pouches
- e-vapor products under the NJOY ACE brand
Altria used to own over 10% of Anheuser-Busch InBev (NYSE:BUD), the world’s largest brewer. In March of 2024, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.
Altria increased its quarterly dividend in the fall of 2025 by 3.9%, from $1.02 to $1.06 per share, marking its 57th consecutive dividend increase.
UBS has a Buy rating with a $79 target price.
General Mills
With products that never go out of style and a strong 6.86% dividend yield, General Mills (NYSE:GIS) is a rebound story that will reward patient investors. Shares of this global manufacturer and marketer of branded consumer foods trade at a cheap 10.4 times estimated 2026 earnings. The company’s segments include:
- North America Retail
- International
- North America Pet
- North America Foodservice
The North America Retail segment reflects business with a variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar, and discount chains, convenience stores, and e-commerce grocery providers. The International segment consists of retail and foodservice businesses outside the United States and Canada. Its product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes, and shelf-stable vegetables.
The North America Pet segment includes pet food products sold in the United States and Canada in national pet superstore chains, e-commerce retailers, and grocery stores. The North America Foodservice segment product categories include ready-to-eat cereals, snacks, and baking mixes.
Piper Sandler has an Overweight rating and a $45 target price.
Universal
This somewhat off-the-radar company is one of the world’s leading tobacco merchants, but Universal (NYSE:UVV) operates as a global tobacco leaf supplier rather than a cigarette manufacturer. It has reported strong demand, has been in business for almost 150 years, and pays a 6.22% dividend.
The company processes and supplies leaf tobacco and plant-based ingredients worldwide. It procures, finances, processes, packs, stores, and ships leaf tobacco for sale to manufacturers of consumer tobacco products. Universal:
- Contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes
- Dark air-cured tobaccos manufacture naturally wrapped cigars, cigarillos, and smokeless and pipe tobacco products
It also provides value-added services, including:
- Blending, chemical, and physical tobacco testing
- Service cutting for various manufacturers
- Manufacturing reconstituted leaf tobacco
- Just-in-time inventory management services
- Electronic nicotine delivery systems
- Customer smoke testing services. Industry-leading gaming, leisure, and hospitality operators occupy its properties
Weiss Ratings has a Hold rating without a target price.
VICI Properties
This New York City–based real estate investment trust specializes in casino and entertainment properties, and it has a dividend yield of 6.57%. VICI Properties (NYSE:VICI) is a top pick across Wall Street in the net lease group and is ideal for more conservative investors seeking gaming exposure and a substantial dividend. It has one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, including three iconic entertainment facilities on the Las Vegas Strip:
- Caesars Palace Las Vegas
- MGM Grand
- The Venetian Resort Las Vegas
VICI Properties owns 93 experiential assets across a geographically diverse portfolio of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio comprises approximately 127 million square feet and features approximately 60,300 hotel rooms, as well as over 500 restaurants, bars, nightclubs, and sportsbooks. Gaming revenue has proven remarkably resilient in recent downturns, and its triple-net lease structure means it collects rent regardless of swings in tenant profitability.
Its properties are occupied by industry-leading gaming, leisure, and hospitality operators under these long-term, triple-net lease agreements. And it has a growing array of real estate and financing partnerships with leading operators in other experiential sectors, including:
- Bowlero
- Cabot
- Canyon Ranch
- Chelsea Piers
- Great Wolf Resorts
- Homefield
- Kalahari Resorts
The company also owns four championship golf courses and 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip.
Barclays has an Overweight rating with a $31 price objective.
Contact [email protected] for any questions or corrections.
Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.
Lee Jackson's journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.
Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.
Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.
