10 Top Dividend Stocks of the S&P 500

I run my fundamental stock screener, searching for stocks with the highest dividend yield. The report lists only companies included in the S&P 500 index. Not surprisingly, aside from one GM (GM), there are only financials and banks in the top ten. Financials had the highest yield, compared to other sectors, even before credit turmoils. And after their deep fall, we can see practically incredible yield - over 30% - for MBIA (MBI).
Below is a table to show the top 10 high dividend stocks, purged from financials.

Top yielding stocks in S&P 500
 

Symbol	Company Name	Industry	Yield
MBI	MBIA Ord Shs	Titleinsur	33.58
(ACAS)	American Capital Strat.	ClFundDebt	18.36
(RF)	Regions Financial Corp	StheastBnk	14.74
(KEY)	Keycorp Ord Shs	MonCentBnk	13.51
(BAC)	Bank of America Ord Shs	MonCentBnk	11.43
(CMA)	Comerica Inc	MidwestBnk	10.7
(WB)	Wachovia Corp Ord Shs	MonCentBnk	10.08
GM	GENERAL MOTORS	AutoManu	9.88
(HBAN)	Huntington Ord Shs	MidwestBnk	9.65
(MI)	Marshal & Ilsley Ord Shs	MidwestBnk	9.05

High dividend S&P 500 stocks (banks and financials excluded)

Symbol	Company Name	Industry	Yield
GM	GENERAL MOTORS	AutoManu	9.88
(CZN)	Citizens Comms Ord Shs	TelecomDom	8.84
(Q)	Qwest Communications Intl	TelecomDom	8.51
(DDR)	Developers Diversified Realty	REITRetail	8.44
(WIN)	Windstream Corp	TelecomDom	8.3
(GCI)	Gannett Co Inc	PublshNews	8.16
(XL)	XL Capital Class A Ord Shs	PropInsure	7.65
(FNM)	Fannie Mae Ord Shs	Mtginv	7.46
(PFE)	Pfizer Ord Shs	MjrDrgManu	7.21
(RAI)	Reynolds American Inc	Cigarettes	7.19

Comments

[pelican:]

Are those dividends safe?

2008 Jul 07 10:04 AM

[Edward Janeck:]

If your going to put your money in US stocks, dividend paying stocks will hold up best in this market. China is a much better place to invest.

2008 Jul 07 10:59 AM

[fireball:]

will regions hold on to their dividend? i own rf and hope the million dollar donation to auburn university is a signal to shareholders.

2008 Jul 07 12:02 PM

[hackerjack:]

I understand that MBIA has suspended its dividend

2008 Jul 07 02:33 PM

[caveatBettor:]

FNM is a financial, isn't it?

2008 Jul 07 03:07 PM

[Wefwef:]

So how close to zero are the dividends going to fall when Q2 reports come out?

2008 Jul 07 04:09 PM

[MCHEAL:]

Greetings:

Agree with above comments...if and that's a big if, stocks hold their dividends at present levels...why isn't everyone jumping in...mostly the bottom is 3-6 months away, and though I love dividends I'm not counting sheep just yet.

2008 Jul 08 06:08 AM

[sharksm:]

This is a useless list as it doesn't explain the high dividends. Most of these company's stocks have dropped up to 50% and the chance is great that the dividends will be cut. The writer should have included stoccks like Canadian Oil & Gas trusts that pay dividends (monthly) like HTE, PWE and the like. I have owned these for years and they produce solid, high dividends.

2008 Jul 08 10:50 AM

[notsosmart:]

i have no connection to anybody or firm on the st. you might want to check out FRO & NAT.checkout div.history. as no one has figured out how to pave over the ocean.

2008 Jul 08 11:08 AM

[hershfin:]

My brother uses them too. What about the Canadian taxes? How do they work?

Hershfin


On Jul 08 10:50 AM sharksm wrote:

> This is a useless list as it doesn't explain the high dividends.
> Most of these company's stocks have dropped up to 50% and the chance
> is great that the dividends will be cut. The writer should have included
> stoccks like Canadian Oil & Gas trusts that pay dividends (monthly)
> like HTE, PWE and the like. I have owned these for years and they
> produce solid, high dividends.

2008 Jul 08 01:15 PM

[sharksm:]

The Canadian Gov't takes 15% off the top for taxes, which you can get a tax credit for by filling out the proper form when you file your tax return. the dividends from the Canadian trusts are qualified for the 15% dividend rate, so it's a wash and you pay the same as if you were paying the U.S. tax rate

2008 Jul 08 02:09 PM

[truthinvesting:]

Reynolds is fine but one would be best served to pick stocks like MO PM KRAFT UST and others whee the dividend is"SAFE" and their is actual growth in earnings and dividends

2008 Jul 09 09:23 AM

[Jake Blues:]

>>>Yep - until Obama (God forbid) gets his dumbass in the WH.


I heard the same nonsense before Bill Clinton was elected. The result? The best economy this country has ever seen. George Bush has destroyed this economy and increased the national debt by over 50% as he borrows $200 million a day to pay for his wars.

I, for one, am looking forward to the day when Obama takes the oath of office and GWB and his cronies are sent packing.

2008 Jul 09 11:57 AM

[BULLISH MR JIM:]

The foreign tax credit is a Credit: if 15% of a $100 dividend is withheld by the Canadian government, the US credit is $15 against your other tax liability. If, instead, you received the $15 as a dividend, the US individual income tax is $2.25 ($15 x .15). Trust me, you would prefer a $15 credit to a $2.25 tax avoidance!


On Jul 08 02:09 PM sharksm wrote:

> The Canadian Gov't takes 15% off the top for taxes, which you can
> get a tax credit for by filling out the proper form when you file
> your tax return. the dividends from the Canadian trusts are qualified
> for the 15% dividend rate, so it's a wash and you pay the same as
> if you were paying the U.S. tax rate

2008 Jul 09 12:24 PM

[Chris Lau:]

The table needs to look at the Cash flow per share and to compare that to the dividend payout.

Fundamentally, i'd avoid auto, am not completely sure where pharmas fit (too much competition, and politics are pushing for lower health care costs).

2008 Jul 09 03:46 PM

[Ken - Break...:]

As those high yielding stocks get into more and more trouble those dividends are sure to be cut. Its either that or those companies will go bankrupt. What's the point of a 30% dividend if you lose 100% of your investment?

2008 Jul 09 07:57 PM

[MSmailbox:]

I like MI. Rather than being forced into a reactive-mode, as IndyMac was, MI sold their data-processing unit and now apppears ready to pay their dividend. They saw this coming and avoided being put into a position of distressed sale of assets, at firesale prices. I'm over-weighted in MI, as of today... The financials have been painted with a broad brush and I believe that MI is way oversold.

2008 Jul 16 03:34 AM

[cleanairwater:]

FREEDOM is not without cost and sacrifice. Obama stance has been that of northern democrats the "Copperheads" of Lincolns Civil war era where if Lincoln had not jailed some of them and they had prevailed we would be living in two United States; North ... freemen and Dixie South ..Slavery......... Where would you want to live?


On Jul 09 11:57 AM Jake Blues wrote:

> >>>Yep - until Obama (God forbid) gets his dumbass in the WH. <br/>
>
>
> I heard the same nonsense before Bill Clinton was elected. The result?
> The best economy this country has ever seen. George Bush has destroyed
> this economy and increased the national debt by over 50% as he borrows
> $200 million a day to pay for his wars.
>
> I, for one, am looking forward to the day when Obama takes the oath
> of office and GWB and his cronies are sent packing.

2008 Aug 06 01:16 AM