Investors looking to generate income from their investments while still having the potential for growth often turn to dividend stocks. However, it’s important to note that dividends are not guaranteed and may be reduced or eliminated if a company’s financial situation deteriorates.
Here are some of the highest dividend-yielding stocks in the S&P 500.
Highest Dividend-Yielding Stocks in the S&P 500
*Market data as of July 17, 2024.
1. Walgreens Boots Alliance (WBA)
Walgreens Boots Alliance operates retail pharmacies globally and has a long history of dividend payments. However, the company recently reduced its dividend by 48% in early 2024 to improve its financial position.
- Dividend Yield: 8.5%
- Annual Dividend: $1.00
Understanding Dividend Yield
Dividend yield is a metric used to evaluate how much income a stock generates relative to its price. By calculating the dividend yield, investors can compare the income potential of different stocks.
Dividend yield is calculated by dividing the annual dividend per share by the current share price. For example, if a company pays an annual dividend of $1.00 per share and the share price is $20.00, the dividend yield would be 5%.
Editorial Disclaimer: Investors should conduct thorough research before making investment decisions. Past performance is not indicative of future results.