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Investors Business Daily
Investors Business Daily
Business
MATT KRANTZ

15 Dividend Stocks Yielding Up To 4.1% Pay Off Big Time

It's been a rough year for most S&P 500 investors chasing dividends. But there are pockets of dividend paying stocks that are working in a big way.

Just 15 stocks in the S&P 500, including financials like CME Group and Blackstone plus data storage and protection services firm Iron Mountain, are beating the S&P 500 on top of yielding anywhere from 2.5% to 4.1%, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. All these stocks are up 20% or more to top the year-to-date gain of the S&P 500.

Such stocks are the exception, not the rule. Most dividend stocks are doing abysmally this year. "Dividend-focused strategies ... still lag by a considerable margin; 2023 was not a year to play it safe," said Nicholas Colas of DataTrek Research.

2023: A No Go Year For S&P 500 Dividend Stocks

Investors clinging to dividend-paying stocks this year are having a tough time. And that's why finding the dividend stocks that actually are paying off is that much more important.

More than 45% of the 399 stocks in the S&P 500 that pay a dividend are down on the year. Meanwhile, more than three-quarters of S&P 500 dividend-paying stocks are lagging the S&P 500 on share prices. Not a great backdrop for dividend investing.

And it's not just a few unlucky dividend plays. Shares of the SPDR S&P Dividend ETF are down 3.1% this year. The S&P 500, at the same time is up, 20%. But a few high yielders do better still?

Standout Dividends

Trading firm CME Group is the standout when it comes to dividend payers with perks. Shares of the well-run trading firm already yield 4.1%. But on top of plump dividends, shares of the stock are up nearly 31% this year.

And you don't have to worry about the company's profit falling apart. Analysts think CME Group will make $9.17 a share this year, up 15% from the same year-ago period. And in 2024, profit is seen rising another nearly 3%.

Meanwhile, also in financials, investment firm Blackstone's shares are up an impressive 54% this year. In addition, the stock yields 3.9%. Analysts in this case, though, see Blackstone taking a gap year. The company's profit is expected to fall nearly 24% in 2023. But then in 2024, analysts are calling for a more than 38% jump in profit.

So, it was a tough year on S&P 500 dividend investors. But if you looked, you could find big dividends and stock gains — at the same time.

Top S&P 500 Yielders Beating The Market

All yield 2.5% or more and up 20% or more this year

Company Ticker Year-to-date % ch. Div. yield Sector
CME Group 30.6% 4.1% Financials
Iron Mountain 31.4 4.0 Real Estate
Blackstone 54.0 3.9 Financials
TransDigm Group 54.1 3.6 Industrials
Seagate Technology 50.5 3.5 Information Technology
Digital Realty Trust 38.2 3.5 Real Estate
Stanley Black & Decker 24.8 3.5 Industrials
NRG Energy 52.0 3.4 Utilities
Phillips 66 24.6 3.2 Energy
PACCAR 41.2 3.2 Industrials
Packaging Corporation of America 32.7 2.9 Materials
Comcast 20.7 2.7 Communication Services
Welltower 36.5 2.7 Real Estate
Snap-on 22.5 2.7 Industrials
Molson Coors Beverage 20.2 2.6 Consumer Staples
Sources: S&P Global Market Intelligence, IBD
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