Financiers enjoy blue-chip stocks that pay fat dividends, however high yield alone does not ensure a safe earnings stream.
Below are the leading large-cap U.S. stocks with the greatest yields, followed by why some might be worth traps instead of treasure chests.
According to Benzinga Pro, the leading high-yield big caps are:
- LyondellBasell Industries LYB: 9.88% yield.
- United Parcel Service, Inc. UPS: 7.75% yield.
- Pfizer, Inc. PFE: 6.92% yield.
- Altria Group, Inc. MO: 6.39% yield.
- Verizon Communications Inc. VZ: 6.25% yield.
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The yield (dividend ÷ cost) looks huge when the stock cost drops greatly.
LyondellBasell’s (down 40% over the previous year) double-digit dividend yield looks dangerous as profits missed out on expectations in second-quarter 2025 monetary outcomes, totally free capital turned unfavorable, and cyclical headwinds weigh on oxyfuels and European operations.
Yet management’s $1.1 billion money enhancement strategy, property sales, and disciplined capex cuts recommend the business is placing itself to maintain dividends and advantage if need and margins recuperate.
For Pfizer, which is down 18% over the previous year, specifically after COVID-vaccine/antiviral earnings dropped.
Its present yield appears appealing– however it’s driven in part by significant decreases in essential earnings lines. Pfizer pays almost all its totally free capital. In one current evaluation by the Wealthy Retirement, payment had to do with 97% of totally free capital. That leaves little margin if profits or capital fail.
Per market information, Altria likewise pays a big portion of profits, which works while company is steady– however any policy, lawsuits, or decrease in cigarette volume can threaten that.
A few of these business deal with structural decrease. Facilities, chemicals, and telecom companies might see margin pressure, energy expense concerns, or regulative danger.
Bottom Line
These blue-chips with the greatest dividend yields can appear like earnings gems– especially for those looking for present money returns.
However lots of bring genuine dangers: falling profits, payment ratios near or above safe limits, sector decreases, or reliance on capital that might not be sustainable.
They might not be traps per se, however numerous warrant care.
Capital declarations, the history of dividend development, and whether a high yield originates from underlying weak point prevail consider examining these stocks.
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