How many companies in the S&P 500 pay a dividend?
Standard & Poor's debuted its first equity index in 1923, although the S&P 500 as we know it today didn't hit the street until 1957. Of the 500 constituents, more than 400 companies in the S&P 500 are dividend payers. Not all of the components, however, offer stellar yields or consecutive dividend increases.
| Stock | Trailing annual dividend yield* |
|---|---|
| Boston Properties Inc. (BXP) | 6.2% |
| Kinder Morgan Inc. (KMI) | 6.2% |
| AT&T Inc. (T) | 6.3% |
| Verizon Communications Inc. (VZ) | 6.3% |
Investors who buy funds that track the S&P 500 Index can rely on dividends to augment the index's price performance. Of the 500 large-cap companies in the index, more than 80% pay dividends. Dividends from companies in the S&P 500 have contributed about 32% of the index's total return since 1926.
Altria Group, Inc. (NYSE:MO), AT&T Inc. (NYSE:T), and Verizon Communications Inc. (NYSE:VZ) are some of the highest-paying dividend stocks in the S&P 500 among others that are discussed below.
| Company | Dividend Yield |
|---|---|
| Evolution Petroleum Corporation (EPM) | 8.39% |
| Eagle Bancorp Inc (MD) (EGBN) | 8.18% |
| CVR Energy Inc (CVI) | 8.13% |
| First Of Long Island Corp. (FLIC) | 7.87% |
There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 1.0.
| Ticker | Company | 5-Year Sales Growth |
|---|---|---|
| ETFC | E*Trade Finl Corp. | -13.75% |
| EVHC | Envision Healthcare Holdings | 369.71% |
| EW | Edwards Lifesciences Corp. | 76.56% |
| FB | Facebook Inc. | 644.76% |
- Giant U.S. cigarette maker Altria has a 9.3% yield and a business that's slowly dying.
- AT&T has a 6.7% yield, a lot of debt, and a dominant business position.
- Healthpeak Properties has a 6.6% yield and owns a diversified portfolio of medical buildings.
- Ulta Beauty. To be fair, Jefferies analyst Ashley Helgans made a valid observation when downgrading Ulta Beauty (NASDAQ: ULTA) to a hold recently. ...
- Amazon. ...
- Nike.
In the end, both Coca-Cola and PepsiCo are solid dividend stocks with strong brands and loyal customer bases. The key is to choose the one that best aligns with your investment goals and risk tolerance.
What is the most reliable dividend stock?
| Stock | Dividend yield |
|---|---|
| Coca-Cola Co. (KO) | 3.3% |
| Johnson & Johnson (JNJ) | 3.4% |
| Prologis Inc. (PLD) | 3.7% |
| Realty Income Corp. (O) | 5.9% |
Not necessarily. While dividend ETFs can offer stable income, their growth potential is generally lower over the long run. That said, dividend ETFs may outperform the S&P 500 during particular time frames, such as during a recession or a period of easing interest rates.
- Realty Income (O) ...
- SL Green (SLG) ...
- STAG Industrial (STAG) ...
- AGNC Investment (AGNC) ...
- Apple Hospitality REIT (APLE) ...
- EPR Properties (EPR) ...
- Agree Realty (ADC)
Does the S&P 500 Pay Dividends? The S&P 500 is an index, so it does not pay dividends; however, there are mutual funds and exchange-traded funds (ETFs) that track the index, which you can invest in. If the companies in these funds pay dividends, you'll receive yours based on how many shares of the funds you hold.
Dividend Yield
Apple's annual dividend in 2021 was $0.88 ($0.22 paid quarterly). Based on Apple's stock price as of March 1, 2022 of around $163 per share, the dividend yield is approximately 0.50%.
What Is a Good Dividend Yield? Yields from 2% to 6% are generally considered to be a good dividend yield, but there are plenty of factors to consider when deciding if a stock's yield makes it a good investment. Your own investment goals should also play a big role in deciding what a good dividend yield is for you.
VOO Dividend Information
VOO has a dividend yield of 1.37% and paid $6.41 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 22, 2024.
VOO's analyst rating consensus is a Moderate Buy. This is based on the ratings of 505 Wall Streets Analysts.
Most of Vanguard's ETF products pay monthly or quarterly dividends.
Berkshire Hathaway is a large, diversified holding company led by renowned investor Warren Buffett that invests in the insurance, private equity, real estate, food, apparel, and utilities sectors. Despite being a large, mature, and stable company, Berkshire Hathaway does not pay dividends to its investors.
Why buy stock with no dividends?
In fact, there can be significant positives to investing in stocks without dividends. Companies that don't pay dividends on stocks are typically reinvesting the money that might otherwise go to dividend payments into the expansion and overall growth of the company.
Amazon is one of the biggest tech companies in the world, and it has an established presence in e-commerce, logistics, media, and digital streaming. Amazon does not pay dividends, unlike other large tech companies such as Microsoft, Intel, and IBM.
Some of the best dividend stocks include Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and AbbVie Inc (NYSE:ABBV) with impressive track records of dividend growth and strong balance sheets. In this article, we will further take a look at some of the best dividend stocks of all time.
| Symbol | Name | Dividend Yield |
|---|---|---|
| SPYI | NEOS S&P 500 High Income ETF | 12.15% |
| KBWD | Invesco KBW High Dividend Yield Financial ETF | 11.94% |
| QYLD | Global X NASDAQ 100 Covered Call ETF | 11.93% |
| PEX | ProShares Global Listed Private Equity ETF | 11.87% |
Over time, the cash flow generated by those dividend payments can supplement your Social Security and pension income. Perhaps, it can even provide all the money you need to maintain your preretirement lifestyle. It is possible to live off dividends if you do a little planning.
