Pfizer, Kraft, and UPS All Yield More Than 6%. Which of These Dividend Stocks Is the Safest Option Today?
These are among the highest-yielding stocks on the S&P 500.
Overview
Chasing high-yielding stocks can be risky. Dividend payments are, after all, never a guarantee. If a company runs into a situation where it needs to divert more cash to growth initiatives or simply can no longer afford to pay the dividend, it may have little choice but to cut or possibly even suspend its payout.
Three popular dividend stocks that are paying more than 6% right now include Pfizer (NYSE:PFE), United Parcel Service (NYSE:UPS), and Kraft Heinz (NYSE:KHC). Which one of these stocks looks to be the safest option for dividend investors right now? Let's take a closer look and analyze their respective payout ratios, cash flows, and long-term risks.
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Originally published at www.fool.com.