4 Top Dividend Payers of the S&P 500
Dividend stocks can play an important role in almost any investment portfolio, but not all dividend stocks are equal. In today's market, some stocks pay much higher dividend yields than others. There are plenty of reasons for these disparities, but they usually come down to risk and growth potential. These four stocks have some of the highest dividend yields in the S&P 500, but make sure that they fit your investment goals before you decide to buy.
Chevron (NYSE: CVX) is one of the world's largest energy stocks, with diversified operations ranging from exploration and production to the refining and sale of petroleum. Chevron followed most of the energy sector on a wild ride over the past 18 months. Share prices dropped drastically when crude oil fell in the first quarter of 2020. Since the low last March, the stock has returned over 70% as energy prices recovered.
While Chevron has roared back, it's still providing an attractive 5.3% dividend yield. The company increased its dividend in May after gaining confidence in financial results for the next year. The company's financial results ultimately hinge on crude oil prices. If oil continues to rise, as some analysts predict, Chevron's cash flows should be more than enough to support its dividend. As it stands, the forecast earnings for this year result in a very high dividend payout ratio, leaving little wiggle room for additional growth.
Source Fool.com
