The stock market has largely moved higher in 2025, and the S&P 500 index is up 15% as of the Nov. 25 close. But unfortunately, some of the best dividend-paying stocks in the benchmark haven’t done quite as well.
Dividend yield is a simple calculation that involves dividing a stock’s annual dividend per share by the current share price. That yield will obviously rise if the dividend goes up, but it can also increase substantially simply by the share price moving lower.
[Sign up for stock news with our Invested newsletter.]
That has been the case with the highest dividend-paying stocks in the S&P 500 this year. All of them have underperformed, and some are sitting on losses of more than 30% on the year. That means they may pop up on screening tools for investors looking for big dividends, but it also means these high-yield stocks also come with high risks.
| Dividend Stock | Dividend Yield |
| Dow Inc. (ticker: DOW) | 6.0% |
| Healthpeak Properties Inc. (DOC) | 6.7% |
| Pfizer Inc. (PFE) | 6.7% |
| Verizon Communications Inc. (VZ) | 6.8% |
| United Parcel Service Inc. (UPS) | 6.9% |
| Altria Group Inc. (MO) | 7.3% |
| Conagra Brands Inc. (CAG) | 7.9% |
| Alexandria Real Estate Equities Inc. (ARE) | 9.9% |
| LyondellBasell Industries NV (LYB) | 11.6% |
Dow Inc. (DOW)
Dividend yield: 6%
Dow the company (not the famous index) remains one of the world’s chemical heavyweights. Earlier this year, its dividend yield shot toward 12% as the stock slid but payouts held steady. Eventually, management cut the dividend in half as operational issues piled up. Even after that reset, the yield is still one of the fattest on Wall Street. There’s real risk here, though. Shares are down 37.8% in 2025 as of the Nov. 25 market close. Still, the cut may give Dow some breathing room as it tries to streamline operations and rebuild momentum heading into 2026.
Healthpeak Properties Inc. (DOC)
Dividend yield: 6.7%
Healthpeak is a major player in medical office buildings and senior living properties, areas that don’t go out of style during recessions. After merging with Physicians Realty Trust in early 2024, the company now oversees about 700 properties and 49 million square feet of health care real estate. That’s a powerful footprint. The challenge is its $9 billion in debt, which has weighed on sentiment. Shares are down 5% in 2025, but the yield remains attractive for investors who can stomach the leverage.
Pfizer Inc. (PFE)
Dividend yield: 6.7%
Pfizer has been around for nearly two centuries, but lately the company has been fighting through a rough patch. Vaccine sales are fading, and progress in obesity treatments has lagged rivals. The recent, hard-won acquisition of Metsera, for up to $10 billion, should help refresh Pfizer’s pipeline (especially in weight-loss drugs with monthly dosing). Pfizer still trails Novo Nordisk A/S (NVO) by a mile, though. Shares have bounced off April lows but remain down for the year. The silver lining: Its dividend is backed by strong cash flow, so income investors can breathe easy even as the stock stumbles.
Verizon Communications Inc. (VZ)
Dividend yield: 6.8%
Verizon is one of the steadier names on this list, even if “steady” just means up 8% when the S&P 500 is up 15%. As the largest U.S. wireless carrier, it serves about 150 million customers and holds serious market power. Its dividend is more than five times the market average, which is a big draw. The downside? Growth is limited in such a saturated market, and Verizon’s debt load is roughly the size of its market cap. Even so, the payout ratio sits around a manageable 60% of earnings, giving income-focused investors some comfort.
United Parcel Service Inc. (UPS)
Dividend yield: 6.9%
UPS has had a tough 2025. Slower global trade, weaker economic activity and softer package volumes have taken their toll. In April, the company announced 20,000 job cuts and a pullback in operations, including ending a partnership with Amazon.com Inc. (AMZN). Shares are down about 20% year to date. Even so, UPS recently raised its dividend for the 16th straight year, proof that management is still committed to shareholder returns. The big question is whether UPS can stay efficient enough to maintain that streak, as revenue is expected to dip again in 2026.
Altria Group Inc. (MO)
Dividend yield: 7.3%
Altria remains a favorite in the high-yield world, and is the only stock on this list that is up by a material amount in 2025. It’s sitting on a gain of 17.5% versus 15% for the S&P 500, so that’s significantly better than others on this list. Altria’s portfolio, with Marlboro, Black & Mild, Copenhagen and more, has generated decades of reliable cash flow. The company just raised its dividend again in October, marking more than 56 consecutive years of increases. But it’s not all smooth sailing. Shares have dropped sharply over the past month, dragged down by weak sales and a 12% decline in Marlboro shipments in the third quarter. Altria is still a defensive, cash-rich pick, but near-term momentum is clearly under pressure.
Conagra Brands Inc. (CAG)
Dividend yield: 7.9%
Conagra is home to grocery staples like Bird’s Eye, Orville Redenbacher and Swiss Miss. But the company is struggling with higher costs and changing consumer tastes. Revenue has been flat for years, and shares have plunged more than 31% in 2025. Management hopes that restructuring and debt reduction will spark a turnaround, but inflation and shifting eating habits make that a tough ask. The good news: The $1.40 dividend is well covered by expected earnings. The bad news: The business feels stuck in place.
Alexandria Real Estate Equities Inc. (ARE)
Dividend yield: 9.9%
Alexandria is the go-to landlord for life science and research space in hubs like Boston, San Francisco and New York. It controls about 40 million square feet of specialized real estate. But 2025 has been rocky. Construction costs are elevated, earnings have been unpredictable, and ARE shares fell nearly 30% in a single week after a rough Q3 report. Revenue and funds from operations dropped, and the stock has lost about half its value this year. The rising dividend yield looks tempting, but that’s mostly because shares keep sinking.
LyondellBasell Industries NV (LYB)
Dividend yield: 11.6%
LyondellBasell currently sports the highest yield in the entire S&P 500, thanks to a $1.37 quarterly dividend. The catch? The business is under pressure from global trade disruptions and higher costs. Profits are expected to fall again in fiscal 2025, for the third year in a row, and current earnings don’t cover the dividend. Unless operations improve, maintaining this monster payout will be tough. It’s a classic high-yield, high-risk setup.
More from U.S. News
10 Best Growth Stocks to Buy for 2026
7 Best Semiconductor Stocks to Buy in 2025
8 Best Green Stocks and ETFs to Buy in 2025
9 Highest Dividend-Paying Stocks in the S&P 500 originally appeared on usnews.com
Update 11/26/25: This story was previously published at an earlier date and has been updated with new information.
