Here is a list of the current ten best paying dividend stocks by yield percentage currently in the S&P 500 Index. This is a great place to start when looking for the best dividend paying stocks as there is a relative margin of safety inside the S&P 500 index with only the biggest and best companies allowed to get in and stay in this index.
A dividend yield is the percent of a stock’s price that is paid out as a dividend on an annual basis. If a stock is $100 and it pays out a $2.50 dividend each quarter for a total of $10 a year then that $100 stock has a 10% yield.
Dividends do provide a cushion and margin of safety as they will help to add to the annual returns on stocks held for longer period of time. It is a good practice to also see the trend of the dividend pay out over time to ensure that the dividend is steady or growing and not declining or in danger of being cut out all together.
You also want to look at the financial health of a company with sales and earnings staying steady and not in a down trend that could endanger the future dividend payouts.
Here are the current top ten dividend yielding stocks in the S&P 500 index.
- The Macerich company (MAC) 10.95% Dividend Yield.
- Macy’s 9.9% (M) 9.99% Dividend Yield.
- Century Link Inc. (CTL) 8.04% Dividend Yield.
- Duke Energy (DUK) 3.96% Dividend Yield.
- HCP Inc. (HCP) 3.96% Dividend Yield.
- Valero Energy Corp. (VLO) 3.95% Dividend Yield.
- Pfizer Inc (PFE) 3.95% Dividend Yield.
- Hanes Brands Inc. (HBI) 3.94% Dividend Yield.
- Regions Financial Corporation 3.93% Dividend Yield.
- Principle Financial Group Inc. 3.95% (PFE)