Stocks With the Highest Dividend Yields in the S&P 500

Lincoln National

• Market value: $3.8 billion
• Dividend yield: 8.0%
• Analysts' consensus recommendation: Hold 

Lincoln National (LNC) is an example of a stock whose dividend yield has soared because its price has tumbled. Indeed, LNC stock shed almost a third of its value for the year-to-date through the end of May.

It's also one of the two stocks on our list that doesn't juice its yield with variable dividends.

Profitability and LNC's ability to maintain its dividend are among market participants' top concerns. Although the life insurance and retirement services firm's annuities business recorded a $1.3 billion operating profit in 2022, its life insurance unit posted an operating loss of $1.9 billion. 

"We acknowledge LNC's discounted valuation to peers, but we think claim cost inflation removes a catalyst from the shares," notes CFRA Research analyst Catherine Seifert, who rates the stock at Hold. 

Over at Jefferies, analyst Suneet Kamath rates LNC at Underperform (the equivalent of Sell), calling it the "least preferred name" in his coverage universe. "We remain unconvinced shares have found a floor, and see risk to the current dividend," Kamath adds. 

Of the 13 analysts covering LNC surveyed by S&P Global Market Intelligence, one rates it at Buy, 10 say Hold, one has it at Sell and one rates it at Strong Sell. That works out to a consensus recommendation of Hold, with a negative tilt. 

LNC's high dividend yield may be enticing, but please be careful with this one. 

Altria Group

• Market value: $80.5 billion
• Dividend yield: 8.3%
• Analysts' consensus recommendation: Hold 

Altria Group (MO) is the second of two stocks on our list that isn't an independent oil & gas exploration and production company. 

The deal with Altria is that there isn't much growth to be found in the U.S. tobacco business. And so the company known for Marlboro cigarettes and Copenhagen dipping tobacco has to keep shareholders happy with generous and reliable dividends.

But dividends are only part of the story when it comes to Altria's status as a defensive stock. Sales of its addictive products tend to hold up well when economic times get tough. MO stock also tends to trade with much lower volatility relative to the broader market.

Those characteristics – as well as a dividend yield of more than 8% and 13 consecutive years of dividend increases – make MO a pretty good place to hide in a bad market. 

That was certainly the case in 2022, when the S&P 500 generated a total return (price change plus dividends) of -18%. It was one of the worst years ever for stocks, and yet MO delivered a total return of +4.4%.

By the same token, defensive stocks like Altria tend to underperform in rising markets. And that's certainly been the case in 2023. While the S&P 500's total return came to more than 12% for the year-to-date through early June, MO's total return stood at just 1.3%.

Analysts mostly expect Altria to continue to lag the broader market over the next 12 to 18 months, assigning it a consensus recommendation of Hold, per S&P Global Market Intelligence. 

Coterra Energy

• Market value: $19.5 billion
• Dividend yield: 8.8%
• Analysts' consensus recommendation: Hold 

Shares in Coterra Energy (CTRA) are off more than 2% so far in 2023, hurt by worries about whether it can continue to fund its generous variable dividends amid lower energy prices and rising recession fears.

Heck, Coterra said it plans to favor share repurchases over variable dividends in 2023, so don't be surprised to see its yield slip in the future. 

The company expects to generate $1.6 billion in free cash flow this year. That sounds great, except that last year the oil company generated levered free cash flow of $2.8 billion – and that was after paying out almost $2 billion in dividends.

No wonder analysts are split on whether CTRA stock can revert to its market-beating ways in the second half of the year.

Of the 28 analysts covering the independent oil and gas firm tracked by S&P Global Market Intelligence, six rate it at Strong Buy, two say Buy and 20 have it at Hold. That works out to a consensus recommendation of Hold. 

Interestingly, the Street's average price target tells another story entirely. At $30.40, analysts give CTRA implied price upside of about 27% in the next 12 months. Add in the projected dividend yield, and the implied total return comes to about 35%.

Devon Energy

• Market value: $31.1 billion
• Dividend yield: 9.3%
• Analysts' consensus recommendation: Buy 

Devon Energy (DVN) is an independent oil and gas producer with operations centered primarily in the Delaware Basin. 

Like its peers, Devon has been able to lavish its free cash flow on shareholders in the form of dividends and share buybacks. 

In early May, Devon reported record oil production for the first quarter of 2023. The firm's operating cash flow totaled $1.7 billion, and its free cash flow hit $665 million. As a related development, the company was able to buy back $692 million worth of its own stock. Moreover, Devon increased its share-repurchase authorization by 50% to $3 billion.

Keep in mind that the energy business is punishingly cyclical. The good times for energy stocks won't last forever, and Devon's 2023 price chart is certainly a reminder of that. 

DVN stock lost more than a fifth of its value for the year-to-date through early June, hurt by concerns about future crude prices and the firm's ability to keep funding its generous variable dividends going forward.

That said, Wall Street remains bullish on the name. Analysts assign DVN a consensus recommendation of Buy, albeit with mixed conviction. Of the 28 pros covering DVN tracked by S&P Global Market Intelligence, 11 rate it at Strong Buy, four say Buy, 12 have it at Hold and one calls it a Sell.

With an average target price of $63.00, the Street gives DVN stock implied price upside of about 30% in the next 12 months or so. Add in the projected dividend yield, and the implied total return comes to almost 40%.

Pioneer Natural Resources

• Market value: $47.9 billion
• Dividend yield: 11.3%
• Analysts' consensus recommendation: Buy 

No stock in the S&P 500 has a higher dividend yield than independent oil and gas company Pioneer Natural Resources (PXD). 

And it's not entirely because of a depressed share price. 

PXD stock had lost as much as a fifth of its value for the year-to-date at one point in March, but then a couple of fortuitous catalysts came along. First, OPEC+ cut its oil production target in early April, which helped all oil and gas stocks. Then, about a week later, news broke that Exxon Mobil (XOM) held preliminary talks about a potential takeover of PXD.

PXD stock was down 10% on a price basis for the year-to-date through June 5, pushing the dividend yield down to 11.3% from an all-time peak of nearly 15% in mid-March. 

And, for now at least, PXD's dividends keep coming. The company in April declared a quarterly base-plus-variable dividend of $3.34 per share, to be paid in June 2023, reflecting a 14% increase to the base dividend component

Wall Street was upbeat on PXD stock's potential to beat the broader market this year even before the company became an acquisition target. Needless to say, analysts are even more bullish now, giving shares a consensus recommendation of Buy. 

With an average price target of $250.11, the Street gives PXD stock implied price upside of 22% in the next 12 months or so. Add in the projected dividend yield, and the implied total return comes to about 33%.