In the investment community, the Standard and Poors 500 Index (S&P 500) is the most common benchmark representing the stock market as a whole. This is why S&P 500 Index funds are a favorite among passive ETF investors
In Pictures: 10 Tips For The Successful Long-Term Investor
Unfortunately, the S&P 500 as a whole has a low dividend yield (only around 2%). Therefore, if you are an income investor who is counting on a reliable stream of dividend payments, the S&P 500's low yield might not be a good core holding for you.
However, if you sift through the index's 500 component stocks, you will notice that a number of them are high-yielding, consistent dividend payers. Furthermore, for the more risk-averse, there also a number of blue chips in the index with solid dividend yields.
For all of you dividend fiends out there, we combed through the S&P 500 to find the top 10 highest yielding stocks:
|Company||Current Dividend Yield||Market Cap (Billions)|
|FRONTIER COMMUN (NYSE:FTR)||9.8%||7.63|
|PITNEY BOWES (NYSE:PBI)||7.4%||4.09|
|ALTRIA GROUP (NYSE:MO)||6.6%||49.20|
|VERIZON COMM (NYSE:VZ)||6.5%||86.98|
|DONNELLEY (RR) (NYSE:RRD)||6.4%||3.39|
|REYNOLDS AMER (NYSE:RAI)||6.3%||16.43|
|AT&T INC (NYSE:T)||6.2%||163.89|
|HEALTH CR REIT (NYSE:HCN)||5.9%||5.81|
The Bottom Line
Dividends matter. After all, a dividend check can help investors sleep easily because it shows that the company has a stable capacity to make money. Best of all, the cash in your hand is proof that the earnings are really there, and you can reinvest or spend them as you see fit. (To learn more about how dividends can boost your portfolio, see How Dividends Work For Investors.)
Stock AnalysisThese three stocks are resilient, fundamentally sound and also pay generous dividends.
Investing NewsAre stocks cheap right now? Be wary of those who are telling you what you want to hear. Here's why.
Investing NewsHere are four stocks that offer good value and will likely outperform the majority of stocks throughout the broader market over the next several years.
Investing NewsHere are three resilient, dividend-paying companies that may mitigate some worry in an uncertain investing environment.
Stock AnalysisIf you're not sure where Ford and General Motors are going, you might want to look at this auto investment option instead.
Mutual Funds & ETFsExplore detailed analyses of the top buy-and-hold exchange traded funds, and learn about their characteristics, statistics and suitability.
Mutual Funds & ETFsLearn about arbitrage funds and how this type of investment generates profits by taking advantage of price differentials between the cash and futures markets.
Investing NewsWill Ferrari's shares move fast off the line only to sputter later?
Stock AnalysisHere are five stocks that pay safe dividends and should be at least somewhat resilient to a bear market.
InvestingThe further you fall, the harder it is to climb back up. It’s a universal truth that is painfully apparent in the investing world.
When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>
The difference between subscribed share capital and issued share capital is the former relates to the amount of stock for ... Read Full Answer >>