Meet the 4 S&P 500 Dividend Stocks That Yield at Least 6%. Here's My Strongest Buy of the Bunch in July.
One stands above the others.
Overview
Four stocks on the S&P 500 pay out dividends of more than 6% -- not including a couple that are real estate investment trusts (REITs), which are required by federal statute to pay out most of their income in dividends in exchange for certain tax breaks.
A 6% dividend yield is extremely high, but it is not always as good as it may appear on the surface. It may be a trap, because it's the percentage of the share price that goes to dividends. So when a stock tanks, the yield goes up if the dividend is not cut -- and that can create an unsustainable dividend payout.
Details
Let's examine the four S&P 500 stocks with yields of more than 6%. Of Verizon Communications (NYSE: VZ), General Mills (NYSE: GIS), Pfizer (NYSE: PFE), and Kraft Heinz (NASDAQ: KHC), which of the four is the best buy and has the most sustainable dividend?
Source
Originally published at www.fool.com.