The S&P 500 index currently yields 1.1%, a figure that falls short of the 4% withdrawal rate often cited by investors. In contrast, three specific stocks present significantly higher dividend yields.
PepsiCo, trading under NASDAQ: PEP, offers a 4% yield. The stock has declined approximately 25% from its 2022 highs. Management is working on initiatives to return to stronger growth, including brand acquisitions and business streamlining efforts. PepsiCo has increased its dividend for over 50 consecutive years, earning it the status of a Dividend King.
Realty Income, listed on the NYSE as O, provides a 5.4% yield. The real estate investment trust has raised its dividend for 30 consecutive years and maintains an investment-grade credit rating. With a portfolio of over 15,500 properties, it is the largest net lease REIT globally. The company's size and financial strength give it advantageous access to capital markets for funding growth.
Enterprise Products Partners, trading as EPD on the NYSE, yields 6.7%. The master limited partnership has increased its distribution annually for 27 years. It holds an investment-grade credit rating and operates as one of North America's largest midstream energy companies, owning pipelines and other energy infrastructure. The business model relies on fee-based revenue from asset usage rather than commodity price volatility.
The Motley Fool Stock Advisor analyst team recently identified what they believe are the 10 best stocks for investors to buy now, and Enterprise Products Partners was not among them. The team noted that Stock Advisor's total average return is 955%, compared to 196% for the S&P 500.