Though the stock market had a tremendous 2025, marking the third consecutive year of double-digit gains for the S&P 500 index, some of the index’s highest-yielding dividend stocks haven’t shared in that bull market run.
[Sign up for stock news with our Invested newsletter.]
In fact, the highest dividend-paying stocks in the S&P tend to be companies that have seen share prices struggle — and as a result, the company’s dividend yield has moved higher. After all, yield is a simple calculation involving annual dividends divided by share price. While an increase in dividends naturally increases yield under this math, a drop in stock value does the same.
Unfortunately, this latter situation tends to be true for high dividend payers. Every stock on this list has underperformed the broader market, and several are down more than 40% in the last 12 months. That means that while these stocks pop up on dividend screens, their elevated yields also reflect elevated risk — so it’s buyer beware.
| Stock | Dividend yield |
| VICI Properties Inc. (ticker: VICI) | 6.3% |
| HP Inc. (HPQ) | 6.3% |
| Pfizer Inc. (PFE) | 6.7% |
| Altria Group Inc. (MO) | 6.7% |
| Kraft Heinz Co. (KHC) | 6.9% |
| Verizon Communications Inc. (VZ) | 7.0% |
| Healthpeak Properties Inc. (DOC) | 7.1% |
| Conagra Brands Inc. (CAG) | 7.9% |
| LyondellBasell Industries N.V. (LYB) | 10.9% |
VICI Properties Inc. (VICI)
Dividend yield: 6.3%
VICI specializes in gaming, hospitality and entertainment real estate. While it’s best known for iconic Las Vegas properties such as Caesars Palace, MGM Grand and the Venetian, this real estate investment trust (REIT) actually owns 54 gaming properties and 39 additional “experiential” assets — including golf courses and Bowlero bowling alleys — across roughly two dozen U.S. states and Canada. Given some of the recent challenges with international tourism to Vegas, with the sharpest downturn in two decades for Sin City, it’s no surprise VICI is sitting on a negative 12-month return, including a drop of nearly 20% from its 52-week high. Still, dividends ticked up from 43.25 cents per share to 45 cents quarterly last year as a sign that the income stream may still be going strong.
HP Inc. (HPQ)
Dividend yield: 6.3%
HP is the brand you knew and loved 20 years ago as a personal computing and laser printing powerhouse. Unfortunately, it has been slower going in the age of smartphones and next-gen technology. On top of that slowing PC demand, HP also has faced margin pressure because of tariffs and supply chain woes. Dividends squeaked up from 28.94 cents per share to 30 cents in 2025, but shares have cratered more than 40% in the last 12 months, so investors should not overlook the real challenges facing HPQ stock in 2026.
Pfizer Inc. (PFE)
Dividend yield: 6.7%
Despite the low-risk nature of health care as a sector, Pfizer is sitting on a slight loss in the last 12 months even as the rest of Wall Street has been booming. That’s because PFE is navigating a difficult post-pandemic transition as vaccine sales are fading and the company has fallen behind rivals in the race for obesity treatments. A recent $10 billion acquisition of Metsera in late 2025 aims to refresh the pipeline, but the efforts will take a while to bear fruit — and investors seem to be worried Pfizer has already fallen significantly behind. The saving grace for dividend investors may be that payouts are only about 60% of expected annual earnings, however, and thus far don’t seem at risk.
Altria Group Inc. (MO)
Dividend yield: 6.7%
Altria is downright stellar when compared with other stocks on this list thanks to returns, when incorporating its generous dividend, of more than 28% in the last 12 months. Its stability comes from iconic tobacco brands like Marlboro, Black & Mild and Copenhagen — but admittedly, there’s not a ton of growth in cigarettes, which creates its own challenges. Still, MO has delivered decades of dependable cash flow with a streak of more than 56 consecutive years of increases. That proves Altria may have a role as defensive, income-generating stock that ranks as one of the most generous dividend payers in the S&P 500.
[READ: 5 Best Nuclear Energy Stocks and ETFs to Buy]
Kraft Heinz Co. (KHC)
Dividend yield: 6.9%
Kraft Heinz’s merger a decade ago created unrivaled scale, but also was a textbook study in corporate efficiency gone wrong. Thanks to heavy debt and a lack of investment in new products to supplement an already aging product portfolio, the result was naturally a slow and steady decline in the business. In fact, to reset things the company is currently planning to split back into two publicly traded firms by the second half of 2026. In the meantime, shares of KHC are down about 17% in the past year, even after considering its sizable dividend. And while the $1.60-per-share annual dividend is currently covered by earnings, it’s hard to know what the future holds without more details on the split.
Verizon Communications Inc. (VZ)
Dividend yield: 7%
Verizon’s yield is more than four times that of the S&P 500, backed by its position as the largest U.S. wireless carrier with roughly 150 million subscribers. Its scale and infrastructure create a wide competitive moat. The drawbacks are a saturated market and a massive debt load that exceeds its current market capitalization. Shares have essentially treaded water over the last 12 months even as the broader market has done quite well, but VZ dividends remain among the most generous in the S&P 500 — and furthermore, consume only about 60% of earnings, so appear to be quite sustainable.
Healthpeak Properties Inc. (DOC)
Dividend yield: 7.1%
Healthpeak Properties owns medical offices and retirement communities, offering a business model that tends to hold up in economic downturns. Following its “merger of equals” with Physicians Realty Trust in early 2024, DOC now controls nearly 700 health care properties totaling about 49 million square feet. Scale comes at a cost, however. The company carries more than $9 billion in debt, and this leverage remains a key risk that has turned off investors. Shares are down about double digits in the last year, though as a REIT, the company maintains a mandate for big dividends, as it must share 90% of taxable income back with shareholders.
Conagra Brands Inc. (CAG)
Dividend yield: 7.9%
Conagra, whose brands include Bird’s Eye, Orville Redenbacher and Swiss Miss, continues to wrestle with higher input costs and shifting consumer preferences. Founded in 1919, the packaged-foods giant has struggled to adapt to evolving dietary trends. Before dividends, shares are down about 30% in the last 12 months as a result. The company’s $1.40 annual dividend has remained steady, but it’s worth noting that dividends haven’t increased since 2023. That, alongside its negative performance recently, should give long-term investors pause before they buy CAG for its yield alone.
LyondellBasell Industries N.V. (LYB)
Dividend yield: 10.9%
LyondellBasell currently offers the highest dividend yield in the S&P 500, but that yield comes with serious concerns. Ignoring its dividend, the share price of the plastics and chemicals giant has declined about 35% in the last year thanks to pressure from global trade disruptions and rising costs. The company raised its quarterly dividend last year to an annual rate of $5.48 per share, yet consensus estimates call for full-year earnings of roughly $3.30 per share in fiscal 2026, suggesting the payout may be unsustainable. The yield may be high right now, but without a meaningful improvement in business conditions to support its lofty payout, maintaining that distribution level could prove difficult in the future.
[READ: 7 Best Silver ETFs to Buy]
More from U.S. News
9 Best Growth Stocks for the Next 10 Years
7 Best Data Center Stocks, ETFs and REITs to Buy
Donald Trump Stocks: 8 Stocks Owned by the President
9 Highest Dividend-Paying Stocks in the S&P 500 originally appeared on usnews.com
Update 01/29/26: This story was previously published at an earlier date and has been updated with new information.
