The 5 Highest-Yielding S&P 500 Dividend Stocks Are Passive Income Home Runs

Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence. According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate. It can also include income from limited partnerships, stocks, bonds, and other similar enterprises in which the investor is not actively involved.

The more passive income can help cover rising costs, such as mortgages, insurance, taxes, and other expenses, the easier it is for investors to set aside money for future needs as they prepare for retirement. Dependable recurring dividends from quality, high-yield stocks are a recipe for success. The five highest-yielding S&P 500 stocks offer incredible, dependable yields from quality blue-chip companies you can buy and hold forever.

Why do we cover the highest-yielding S&P 500 dividend stocks?

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past 50 years (1973-2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

Altria

This tobacco company offers value investors a compelling entry point and a generous 7.25% dividend yield. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.

The company provides cigarettes primarily under the Marlboro brand, as well as:

• Cigars and pipe tobacco, principally under the Black & Mild brand
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! Oral nicotine pouches
• e-vapor products under the NJOY ACE brand

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria used to own over 10% of Anheuser-Busch InBev S.A. (NYSE: BUD), the world’s largest brewer. In 2024, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings, but it still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.

Crown Castle International

This top cell tower company offers incredible growth and income possibilities with a fat 6.37% dividend. Crown Castle International Corp. (NYSE: CCI) is one of the largest U.S. wireless tower companies, with over 40,000 towers and approximately 90,000 route miles of fiber supporting small cells and fiber solutions across every primary U.S. market.

The company’s core business is leasing space on its wireless towers, primarily to wireless carriers, government agencies, and broadband data providers.

This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology, and wireless service, bringing information, ideas, and innovations to the people and businesses that need them.

Crown Castle is one of the best stocks in the sector for more conservative investors. Its high yield distribution and low volatility make it a good holding for accounts seeking growth, income, and less risk.

Verizon

This top telecommunications company offers tremendous value, trading at 8.75 times estimated 2025 earnings and paying investors a strong 6.40% dividend. Verizon Communications Inc. (NYSE: VZ), through its subsidiaries, provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.

It operates in two segments:

• Verizon Consumer Group
• Verizon Business Group

The Consumer segment provides wireless services across the United States’ wireless networks under the Verizon and TracFone brands, as well as through wholesale and other arrangements.

It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:

• Smartphones
• Tablets
• Smartwatches and other wireless-enabled connected devices

The segment also offers wireline services in the mid-Atlantic, including the District of Columbia, and the northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and a copper-based network.

The Business segment provides wireless and wireline communications services and products, including:

• FWA broadband
• Data
• Video and conferencing
• Corporate networking
• Security and managed network
• Local and long-distance voice

Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.

LyondellBasell

This blue-chip chemical giant offers a very dependable and gigantic 9.06% dividend. LyondellBasell Industries N.V. (NYSE: LYB) operates as a chemical company in:

• The United States
• Germany
• Mexico
• Italy
• Poland
• France
• Japan
• China
• the Netherlands
• And elsewhere

The company operates in six segments:

• Olefins and Polyolefins-Americas
• Olefins and Polyolefins-Europe, Asia, International
• Intermediates and Derivatives
• Advanced Polymer Solutions
• Refining
• Technology

It produces and markets olefins and co-products, including polyethylene and polypropylene, propylene oxide and its derivatives, oxyfuels and related products, as well as intermediate chemicals such as styrene monomer, acetyls, ethylene oxide, and ethylene glycol.

In addition, the company produces and markets compounding and solutions, including:

• Polypropylene compounds
• Engineered plastics, masterbatches
• Engineered composites, colors, and powders
• Advanced polymers, including catalloy and polybutene-1
• Refines heavy, high-sulfur crude oil, other crude oils, and refined products, including gasoline and distillates

Further, it develops and licenses chemical and polyolefin process technologies; manufactures and sells polyolefin catalysts; and serves food packaging, home furnishings, automotive components, and paints and coatings applications.

Dow

Dow Inc. (NYSE: DOW) serves as a holding company for The Dow Chemical Company and its subsidiaries, paying a substantial 9.28% dividend. The Company conducts its operations through six global businesses, which are organized into segments, such as:

• Packaging & Specialty Plastics
• Industrial Intermediates & Infrastructure
• Performance Materials & Coatings

The Packaging & Specialty Plastics segment consists of two integrated global businesses: Hydrocarbons & Energy and Packaging and Specialty Plastics. This segment employs a polyolefin product portfolio.

The Industrial Intermediates & Infrastructure segment comprises two customer-centric global businesses: Industrial Solutions and Polyurethanes & Construction Chemicals. These businesses develop intermediate chemicals essential to manufacturing processes, as well as downstream, customized materials and formulations that utilize advanced development technologies.

Performance Materials & Coatings segment consists of two global businesses: Coatings & Performance Monomers and Consumer Solutions.

Two Blue Chip Dividend Giants Make Up Almost 40% of Warren Buffett’s Portfolio

The post The 5 Highest-Yielding S&P 500 Dividend Stocks Are Passive Income Home Runs appeared first on 24/7 Wall St..