The S&P 500's combined dividend yield hit a record-low 1.04%, but five index members still deliver dividends of 6% or more, all rated Buy. General Mills (GIS) yields 6.9% at just 10x 2026 earnings, while Verizon (VZ) has raised its dividend for 20 consecutive years. Since 1926, dividends have contributed 32% of the S&P 500's total return, and payers have delivered more than double the returns of non-payers.
It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Investors love S&P 500 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 their income from employment or other sources such as Social Security and pensions. We discovered that the legendary legacy index as a whole has the combined yields on the 500-member stocks at its lowest level ever, a paltry 1.04%. While that is a nice addition to owning 500 stocks, the reality for many investors is that they are looking for growth and income, with dividends higher than that.
We decided to screen the S&P 500 index stocks for the highest-yielding companies and found five that pay dividends of 6% or more. While likely better suited for growth and income investors with a somewhat higher risk profile, all are companies that have been around for decades and are likely to maintain their current dividend payouts. Plus, all five are rated Buy at top Wall Street firms.
SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) 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 50 years (1973 to 2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
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