The S&P 500 index has been one of the best-performers of all time. Launched in 1950s when it was trading at $45.4, the blue-chip index has surged to over $6,100. While the index is known for its growth, some companies have a higher dividend yield. Let’s explore some of the high-yielding stocks in the S&P 500 index and whether they are good investments.
Walgreens Boots Alliance (WBA)
Walgreens Boots Alliance is a top high-yielding S&P 500 index stock, with its 8.42% return. This yield has jumped because its stock has crashed hard in the past few years. It has dropped by over 82% from its highest level in 2015 as its business has gone through major challenges like slow growth and high cost of doing business.
Walgreens stock is a good one to buy because of its potential as an acquisition target. There are rumors that Sycamore Partners, a private equity company, will make a bid for the firm. Such a move would likely attract bids from other private equity firms, pushing its stock much higher.
Pfizer (PFE)
Pfizer is another high-yielding S&P 500 index company. It has a 8% yield as its stock has plunged by over 50% from its all-time high of $54 in 2021. Pfizer has crashed as the momentum of the Covid-19 pandemic ended and as its attempt to enter the weight-loss industry faded.
The company has also spent billions of dollars in acquisitions. Pfizer acquired Seagen in a $43 billion deal, Biohaven, Global Blood Therapeutics, and Arena Pharmaceuticals for $11.6 billion, $5.4 billion, and $6.7 billion, respectively.
While Pfizer is an undervalued company, it is also going through major challenges that make it a risky investment.
Ford Motor (F)
Ford Motor is another high-yielding company in the S&P 500 index as its stock has plunged by about 50% from its all-time high. Its crash has mirrored that of other traditional automakers amid a weak reception of its electric vehicles. It has a dividend yield of 7.7%
Ford has now scaled down its EV ambitions and is mostly focusing on hybrids and ICE vehicles. Its most recent results showed that its revenue rose by 5% to $46.2 billion, while its adjusted EBIT rose to $2.6 billion. The stock may start to rebound this year as interest rates continue falling.
Altria (MO)
Altria is another high-yielding company in the S&P 500 index. It is a top tobacco stock that has a long history of paying dividends. That’s because tobacco companies often generate substantial sums of money and return them to shareholders.
Altria’s stock has jumped by over 30% in the last twelve months as it has reported stronger-than-expected results. However, growth in the tobacco industry is slowing, meaning that the stock may pull back this year. That is a sign that the
Best high-yielding S&P 500 stocks to buy
Some of the best high-yielding S&P 500 index stocks are Dow Inc, Franklin Resources, Realty Income, and AT&T.
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