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I actually own Clorox before starting my YouTube channel, but I sold it and used some of that money to begin my alpha position.
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What's up everybody? GenX dividend investor here. In this episode, I'll share the 14 stocks in the S&P 500 that currently have dividend yields above 5%, including two I own, three I used to own, and one stock in the mix that has actually outperformed the market over the last 5 years. And for those wondering, I tend to buy or sell out of a new stock about once per year on average. Anyway, when you look at the financial landscape today, it can feel like the average person is constantly being pushed to spend more, borrow more, and chase the next thing. Even though real financial independence usually comes from doing almost the opposite. And that's part of what makes dividend investing so relatable. I mean, instead of just cutting back on spending, you're directing your cash flow to build a second stream of income. One that can eventually start taking over your real world bills like groceries, utilities, part of your mortgage, or even your retirement lifestyle. So, when an S&P 500 company offers a dividend yield of 5% or more, it naturally gets some attention, especially when the broader index itself yields closer to 1%. But a high yield can often tell two completely different stories. Sometimes the market is overlooking a durable business that's producing reliable cash flow and returning a meaningful portion of it to shareholders. Or maybe the stock price has fallen because the business is struggling and that attractive yield is warning us that the dividend could eventually be reduced. So to separate the solid high yielders from the dividend traps, I pulled the latest data for yield, payout ratio, dividend growth rate, and 5-year total return mostly from Seeking Alpha. As of this week, every number is a point in time snapshot. And remember that yields change whenever stock prices fluctuate, dividends get hiked, or payouts get cut. And that matters because you simply can't buy a stock just because the yield looks attractive. Like one company might give you a big quarterly payout while its stock price stays flat or drifts down, while another might give you a smaller dividend, but a far better overall growth. Neither is inherently better because it depends on your goals and whether you want more passive cash flow today or total return for tomorrow or whatever. Bottom line, you've got to understand why that yield is high, how the payout is being funded, what could weaken that cash flow, and whether the business can realistically sustain or grow your income over time. And I'll go through the 14 companies I found in alphabetical ticker order to keep things completely neutral, evaluating each stock on its own merits, rather than assuming the first or last one is automatically the best. So, let's start with Amcor, ticker AMCR, a global packaging company that produces everyday containers and wrappers for food, beverage, healthcare, and other defensive markets. Amcor currently offers a dividend yield of 5.79%, a payout ratio near 68%, six consecutive years of dividend increases, and a 5-year dividend growth rate of 2.1%. Over the last 5 years, Amcor produced a total return of only about 1% compared with roughly 85% for the SP500. And that difference alone shows why we don't want to judge an investment by yield. Now, the last 5 years don't tell us what the next five will look like because most businesses go through stretches of underperformance and outperformance. So, I'd put more weight on where the company may be heading than where it's already been. Amcor's massive scale and focus on everyday essentials like food and medicine help keep its cash flow steady and predictable, but its organic volume growth has been sluggish, dividend growth has been losing out to inflation, and management still has debt to work through, amongst other things. So to me, the bigger question isn't simply whether Amcor can pay next quarter's dividend, but whether it can reduce leverage, improve volumes, and provide more than a high starting yield. At least that's my two cents from researching it. Moving on, the second company I found is Alexandria Real Estate Equities, ticker AR, a REIT that owns specialized lab and medical research buildings used by top drug makers and biotech firms. Alexandria currently yields about 5.6% with the funds from operations payout ratio near 45%. Now, at first glance, that dividend coverage might look extremely attractive, but Alexandria reduced its quarterly dividend from $132 to 72 in December of 2025, which was a 45% cut. Ouch. That helps explain its 5-year dividend growth rate of4.4%, zero consecutive years of increases, and a 5-year total return of -69%. Ouch. Again, stick with me because later in this video, I'm also going to show you a high yielder that's actually beating the SP500 over that exact same 5-year period. So again, a 5% plus yield by itself isn't inherently good or bad. And to be fair, Alexandria isn't all bad news. I mean, they own specialized buildings in major pharmaceutical, biotech, and medical research clusters, and laboratory space isn't as easy to replace as a traditional office. But a con is that weaker leasing, lower property values, tighter biotech funding, and higher financing costs already forced the dividend cut that happened. TLDDR Alexandria is now a turnaround story to me and investors have to decide whether the reduced dividend creates a healthier foundation or whether the property challenges still have further to go. Remember, sometimes the best time to invest is when something is beaten down, while other times it's best to ignore these types of situations. Okay, moving on. The third company I found is Crown Castle, ticker CCI, a cell tower rate with around 40,000 locations across the United States. Crown Castle has a dividend yield of about 5.6% 6% with a fund from operations payout ratio around 105% and a 5-year dividend growth rate of -3.9% which means a cut happened and a 5-year total return near51%. Crown Castle sold its fiber and small cell businesses in May of this year simplifying the company and freeing billions of dollars for debt reduction. Now, a pro with CCI is that long-term growth in mobile data should continue supporting demand for tower infrastructure while its asset sale gives Crown Castle a more focused business model. A con is that carrier spending can fluctuate, lease cancellations can create pressure, the payout ratio deserves close attention, and the company already had to cut its dividend. So, Crown Castle may become a more durable income business after its asset sale. But to me, it still has to prove that the streamline tower strategy can produce stable cash flow per share. Moving on, the fourth company is Clorox, ticker CLX, a consumer staples company you no doubt recognize with its cleaning products amongst other things. I actually own Clorox before starting my YouTube channel, but I sold it and used some of that money to begin my alpha position. Clorox has a dividend yield of about 5.2%, a 73% payout ratio, along with an awesome 49 consecutive years of dividend increases, bringing it within one year of that elite dividend king status, but only has a 5-year dividend growth rate of 2.2% and has an icky 5-year total return of -29%. Which to me is pretty crazy given its history. I mean, Clorox owns trusted brands everyone knows and uses, and their pricing power has historically helped the company offset rising transportation labor packaging and commodity costs. Of course, the demand they got during the pandemic was just a spike and inflation and some operational disruptions they had, hurt their margins, and exposed how slowly their business could grow when volumes weakened. So, to me, this looks less like an immediate dividend crisis and more like a recovery story where investors are being paid to wait, assuming management can rebuild margins and return to stronger growth. But hey, who knows? I'm curious though, have you ever held a high yield stock that just kept dropping or do you tend to cut your losses after a stock falls? Let me know in the comments. Moving on, the fifth company is Comcast, ticker CMCSA, a media and communications powerhouse that owns everything from broadband networks to movie studios and theme parks. It has one of the more interesting combinations of a high yield and a low payout ratio on my list. I actually used Comcast television and internet bundle for years before moving and switching services. So, I've also experienced the company as a customer, which was great at times, but tended to have weak customer service. Comcast has a dividend yield of 5.5% with a nice 35% payout ratio along with a great 17 consecutive years of dividend increases, a strong 5-year dividend growth rate of 7.6%, but a 5-year total return near 47%. Yikes. Now, a good thing with Comcast is that it still produces substantial cash flow across broadband, media, studios, theme parks, and other assets, which makes the dividend appear better covered than many others in this video. But a con is that cable keeps losing subscribers. Broadband faces more competition from fiber and fixed wireless, and a low payout ratio won't create strong returns if earnings stagnate. So, the market doesn't seem to be especially worried about whether Comcast can afford the dividend today, but it clearly wants proof that the business can stabilize and find a stronger path to growth. Okay, up next is the sixth company and that's Health Peak Properties, ticker doc, a healthcare re that owns medical offices, senior housing and other healthcare real estate. Health peak recently grew larger by acquiring physicians realy trust and picking up more lab space expanding their footprint across major health systems. Health Peak has a dividend yield of 5.6% with the funds from operations payout ratio of 70% along with a bad 5-year dividend kagger of minus 1.9% and a crappy 5-year total return of - 24%. Ouch. Now, a pro with DOC is that an aging population and a much larger post-meger property portfolio should support long-term demand for healthcare real estate. A con is that major acquisitions and demographics alone don't guarantee returns because Health Peak still has to integrate those assets efficiently, maintain occupancy, and grow earnings on a per share basis. Their dividend appears reasonably supported to me, but Health Peak still needs to prove that its larger postacquisition portfolio can translate into meaningful dividend growth after accounting for higher financing costs. Moving on, the seventh company is General Mills, Ticker GIS, a well-known packaged foods and pet care company behind brands such as Cheerios, Pillsbury, and Nature Valley. They're actually another company I used to own before I was on YouTube. General Mills has a dividend yield of about 6.8%, a 69% payout ratio, six consecutive years of dividend increases, a week 5-year dividend growth rate of 3.7%, and a scary 5-year total return of -25%. Now, a pro with General Mills is that it owns familiar brands and resilient categories, i.e. People might reduce restaurant spending or delay expensive purchases, but they'll still buy groceries, snacks, cereal, and pet food. A con is that defensive doesn't mean immune because General Mills has been dealing with weaker organic sales, promotional pressures, cautious consumers, and competition from private label products. Their 6.8% yield is compelling, but the market is wondering whether the dividend can eventually be supported by renewed growth rather than continued cost reductions and price increases. Okay, then we come to the eighth company I found in the S&P 500 that is over a 5% dividend yield and that's Craft Hinder KHC. It's a global package food company with brands you'd no doubt recognize like Craft Cheese, Hind Ketchup, and a bunch of others. Craft Hind has a dividend yield of about 6.2% with a payout ratio near 63% but zero recent years of dividend increases, a flat 5-year dividend growth rate, and a 5-year total return of 9%. A pro with them is that its recognizable brands and enormous distribution network still generate enough operating cash flow to cover the existing dividend. A con is that Craft Hinds has kept the dividend frozen for years while management tries to fix sales, changing consumer preferences, brand investment needs, debt obligations, and previous impairment charges. So having their dividend being covered today is different from being positioned for meaningful dividend growth, especially when inflation keeps reducing what the same payout can buy. Bottom line, Craft Hinds may still work as a current income holding, but I feel that investors need more evidence that revenue, volumes, and earnings per share can improve before expecting meaningful dividend growth. Moving on, the ninth company is Altria, ticker Mo, a company that I currently own, which delivers what many people would call the most surprising total return on this list. It currently has a dividend yield of 6.2% with a payout ratio near 76%, which is a level management is comfortable with given how their company works. They've gotten an incredible 56 consecutive years of dividend increases, have an okay 5-year dividend growth rate of 4.3%, and have an awesome 5-year total return of 110% outperforming the tech heavy SP500. Now, a pro is that Altra has tremendous pricing power and that they can convert a large portion of earnings into cash, but has had to repeatedly raise prices enough to offset much of the decline in cigarette volumes. A con is that the strategy can't continue forever unless the company succeeds in smoke-free products because volumes could eventually fall faster than pricing can offset and regulation could become even more restrictive. So, Altra is a powerful example of how valuation, cash flow, and shareholder returns can overcome a negative industry narrative for a long time. Although investors shouldn't assume that the next 5 years will automatically resemble the last five. Okay, next we come to the 10th company in my list and it's another I own and that's realy income ticker O. a triple net lease reed that owns thousands of commercial properties and is probably the most recognizable monthly dividend payer in the list. Realy Income has a dividend yield of about 5.1% with an adjusted funds from operations payout ratio near 75% and has an awesome 32 consecutive years of dividend increases, a weak 5-year dividend growth rate of 3.5% and a very poor 5-year total return near 19%. A pro with realy income is that they own a massive and diversified portfolio along with long-term triple net leases that require tenants to cover taxes, insurance, and maintenance. A con is that higher interest rates have increased their cost of debt and equity, making it harder to acquire properties at returns that create meaningful growth per share. Their monthly dividend payment can feel similar to receiving a paycheck, only you aren't actively working to keep getting paid. Of course, a monthly dividend isn't automatically safer than receiving the same annual amount quarterly. Bottom line, its dividend history is impressive, but future returns depend on management finding attractive deals without taking excessive balance sheet risk. Okay, next up is the 11th company in Fizer, ticker PFE, a global pharmaceutical company with a broad drug portfolio and a growing presence in oncology and specialty medicine. They're [clears throat] another one I used to own and I have a good friend who worked at Fizer for years. Fiser has a dividend yield of about 6.9%, a 56% payout ratio, 16 consecutive years of dividend increases, a 5-year dividend growth rate of 2.4%, and a 5-year total return nearative -28%. Yick. A pro is Fiser's global scale, massive sales force, broad portfolio of meds, and ability to market and distribute major drugs worldwide. Some con are that they're dealing with declining pandemic revenue, acquisition integration issues, a lot of debt, upcoming patent expirations, and the challenge of replacing earnings from older blockbuster drugs. So, evaluating Fizer based only on that dividend yield ignores the sheer amount of execution required over the next several years. The payout appears manageable based on current earnings, but the market wants proof that newer products and acquired assets can create enough growth to offset declining legacy revenue. Moving on, the 12th of 14 companies in my list is United Parcel Service, ticker UPS, a global package delivery and logistics company with one of the largest transportation networks in the world. UPS has a dividend yield of 6.3%, a payout ratio near 90%, 16 consecutive years of dividend increases, an awesome 5-year dividend growth rate of 10.1%, but a 5-year total return near 30%. But you got to know that its 5-year dividend ker is heavily skewed by a massive 49% hike back in 2022 during the post-pandemic boom. And since then, UPS has given investors only tiny fractional hikes. An obvious con right off the bat is its payout ratios flashing warning to me. Basically, higher labor costs, lower packaging volumes, and changing global supply chains have really all squeezed their earnings. That doesn't automatically mean a dividend cut is coming, but it also wouldn't surprise me either. On the plus side, pros that UPS's network of trucks, aircraft, hubs, technology, and customer relationships would be extremely difficult for a new competitor to recreate. Okay, almost done. And now we come to the 13th company, and that's Vichy Properties, ticker VICI, a real estate investment trust that owns massive casinos, hotels, and entertainment venues, including iconic real estate in the Las Vegas strip. Vichy currently has a dividend yield of about 6.8% 8% supported by an adjusted funds from operations payout ratio near 73% and seven consecutive years of dividend increases, a 5-year dividend growth rate of 6.4% and a 5-year total return of only 14%. It should be obvious by this point in the video that most REITs have been struggling for the last few years. Though long-term, many REITs have outperformed. So, is now the time to dive into them? Well, that's something you'll have to analyze and answer for yourself. Now, a pro is that Vich's long-term leases often include rent increases, and its tenants operate properties that would be difficult to relocate or replace. A major con is that their portfolio relies heavily on gaming and a small group of tenants, making high interest rates an extra headache when trying to find new growth at attractive returns. I've thought about opening a position in Vichy to compliment my old position, especially with her expanded regional footprint outside of Vegas, but I've never pulled the trigger and I've just enjoyed my steady at a realy income payout, which sends me over a grand each month. Speaking of real estate, if you could only hold one RET in your portfolio for the next decade, which one gets the top spot for you? Drop me a comment and let me know. Moving on, we come to the final company in the SP500 that is above a 5% yield, and that's Verizon, ticker VZ, a wireless and telecommunications company serving millions of consumers and businesses through recurring mobile and broadband subscriptions. Verizon currently has a dividend yield of about 6%, a payout ratio of 57%, 20 consecutive years of dividend increases, a week 5-year dividend growth rate of 2.2%, and a poor 5-year total return of 16%. A pro with VC is its predictability because millions of customers treat wireless services essential, giving Verizon a large base of recurring revenue and cash flow. A con is that heavy spectrum and 5G investments contributed to a substantial debt load while competition remains intense as carriers fight for subscribers through promotions, device subsidies, and bundled services. Verizon's dividend appears supported by current cash flow, but growth has remained modest, meaning most of the appeal comes from the current dividend yield rather than rapid income expansion. Bottom line, Verizon may appeal to investors seeking dependable current income. Although the trade-off is slower growth than a balance sheet that has some issues. And as I look across these 14 companies, to me, the biggest lesson isn't that every high yielding stock is dangerous. And it also isn't that every company with a long dividend history belongs in your portfolio. To me, a yield above 5% is more like one reason it can be interesting to investigate what the market is worried about. We learned how Alexandria and Crown Castle already cut their dividends, how Comcast appears well covered but faces serious growth questions, and how General Mills, Craft Hinds, and Clorox have demonstrated that even defensive brands can struggle with changing demand, inflation, volumes, and slower growth. We also saw how Altria proves that a company operating inside a declining industry can still produce excellent shareholder returns when valuation, pricing power, cash flow, and dividends all work together. So, if you're starting right now with only a few dollars of dividend income every quarter, I can understand how that can feel insignificant compared with the income you eventually want. The good news is that those first few dollars prove that your money has started working alongside you. And as you keep contributing, reinvesting, and improving your process, those payments can gradually cover real expenses and create more flexibility in your life. Your investing doesn't require perfection or the highest yield available. But it does usually need patience, diversification, discipline, and the willingness to understand what you own. So look beyond the headline yield, examine the cash flow, study the balance sheet, and decide which companies give you the greatest confidence that the dividend can survive difficult conditions. and let me know which of these 14 businesses you would trust the most over the next 5 years and which one you believe carries the greatest risk of a dividend cut. And please do me a favor and hit that thumbs up button. Subscribe if you haven't yet and click the bell notification. Now, I'd like to call out my newest Patreon aristocrat, your rep 13, who just signed back up. Aristocrats get access to my dividend spreadsheet, and they get to watch my videos before I release them publicly. Plus, they get to vote on which thumbnails I use for my videos. They also get access to private channels on my dividend discord where I'll tell you first if I'm buying or selling or whatever. I'd also like to call out my newest channel member, Andy Papa, for signing up. Channel members also get to watch my videos before I release them publicly, and they get to vote on which thumbnail I use for my videos. They also get a special badge emoji that gets listed by their name when they leave a comment, which levels up based on the total time they're a member. Moving on. Next, I'd like to show my gratitude to subscribers who left me kind comments. So, I'm going to shout out 10 who've done just that. So thanks go out to Mark Edgar, Carpatica Publishing, Thumper Jr. Zas, Jorge Del Rio, We Are DIY, Austin, and then multiple from Puerto Rican Space Milk, multiple from Walter Ramirez, and multiple from the Gordy Pig. Thanks, folks. I really appreciate it. Next, I'd like to pitch my Seeking Alpha affiliate link, which often has benefits when new people sign up. I'd also like to pitch my FastCrafts affiliate link along with my coupon code in the description of this video as using both will allow new subscribers to get 25% off their first payment even if they sign up for a full year. Also, check out my Patreon page and or consider joining my channel membership as both have some cool perks you might like. Finally, I'll close this off by recommending that everyone join my free divisor chat server which has over 11,000 dividend investors on it from 88 countries around the world. Thanks for watching. Stay positive and I'll talk to you again real soon. Remember, I'm not a financial adviser and my videos are for entertainment and inspirational purposes only. Investing of any kind involves risk. I'm only sharing my opinions with no guarantee of gains or loss on investments.
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