High-Yielding S&P 500 Dividend Stocks That Analysts Like
Sure, a light beer that tastes great and is less filling would be ideal. Unfortunately, in both investing and brewing, it's rare to find a product that checks all the boxes.
No single stock is going to break the risk-reward relationship, but you can aim for dividend income with these high-yield S&P 500 stocks.
You'll want to understand the risks associated with these picks. For example, real estate investment trusts (REITs) are well represented on this list and their dividends are taxed as ordinary income vs. the lower capital gains rate for qualified dividends.
But if you're looking for stocks that yield 3% or more, these S&P 500 dividend payers are a good place to start.
- AT&T (T)
Market cap: $122.4 billion
Stock price: $17.10
Annual dividends: $1.11
Dividend cadence: Quarterly
Why T Is A Top Choice
AT&T is a major telecom provider with a history of hefty dividend yields. The company lost its Dividend Aristocrat status in 2021 after spinning off WarnerMedia and slashing its dividend. Still, AT&T remains a top-yielding stock, currently at 6.5%. More importantly, the telecom has made strides improving the sustainability of its dividend with an improved cost structure and balance sheet, plus rising cash flow.
- Vici Properties (VICI)
Market cap: $30.1 billion
Stock price: $28.82
Annual dividends: $1.66
Dividend cadence: Quarterly
Why VICI Is A Top Choice
VICI owns gaming and entertainment properties, including Caesars Palace Las Vegas and MGM Grand. The company also owns golf courses and finances properties for other operators.
In 2023, VICI grew revenues by 38.9% to $3.6 billion. The company also generated $2.5 billion in net income, up 124.9% from the prior year. Shareholders reaped rewards, too, with a 6.4% dividend increase last year. VICI has increased its dividend six times in six years, good for a current yield of 5.8%.
- KeyCorp (KEY)
Market cap: $13.4 billion
Stock price: $14.34
Annual dividends: $0.82
Dividend cadence: Quarterly
Why KEY Is A Top Choice
KeyCorp provides consumer and commercial banking services through the regional bank chain KeyBank. KEY stock had a tough year last year, shedding about 18% of its value when larger banking peers rose. One catalyst was the collapse of Silicon Valley Bank, which dragged down smaller regional banking stocks in its wake.
Those smaller banks have been challenged to manage through rising interest rates, credit quality declines, and a soft lending environment. Despite those factors, KEY did make progress improving its balance sheet and shifting to a more growth-oriented strategy. In time, those changes should deliver a stronger bank. For now, shareholders are getting a 5.7% yield as they wait for conditions to improve.
- Evergy (EVRG)
Market cap: $11.9 billion
Stock price: $51.64
Annual dividends: $2.57
Dividend cadence: Quarterly
Why EVRG Is A Top Choice
Evergy generates and distributes electricity to homes, businesses, and municipalities. For 2023, Evergy reported lower GAAP EPS of $3.17 vs. $3.27 in the prior year. Unfavorable weather played a role in the decline, along with higher expenses for interest, depreciation, and amortization.
Even so, analysts like the company's strategy and growth outlook. The strategy includes operational and financial execution, alongside regulatory activities that will benefit future earnings. Evergy's stated growth target is 4% to 6% through 2026. The stock currently has a yield of 5.0%.
- Huntington Bancshares (HBAN)
Market cap: $18.8 billion
Stock price: $12.92
Annual dividends: $0.62
Dividend cadence: Quarterly
Why HBAN Is A Top Choice
Huntington Bancshares provides commercial, consumer, and mortgage banking services through the regional banking chain Huntington National Bank. HBAN's stock price has been slightly more resilient than KEY's in the past year. Still, the environment remains challenging, and that has affected HBAN's results. The good news is that interest rate hikes have paused, and the business climate for smaller banks should improve.
In the meantime, HBAN has momentum in deposits. The bank's conservative underwriting discipline has also produced high-quality loan growth. The current yield is 4.5%.
- Regency Centers (REG)
Market cap: $11.0 billion
Stock price: $59.36
Annual dividends: $2.68
Divide