Key Points

There are four non-REITs in the S&P 500 with dividend yields of more than 6%.
The four stocks are Verizon, General Mills, Pfizer, and Kraft Heinz.
Verizon stands out as the strongest dividend stock among them. Here is why.

Four stocks on the S&P 500 deliver dividends above 6% when excluding real estate investment trusts (REITs). These trusts must distribute most earnings as dividends to qualify for tax advantages under federal rules.

A dividend yield at 6% appears attractive yet may signal caution. The figure reflects the dividend amount relative to the current share price. A declining stock price can inflate the yield without any dividend reduction, potentially indicating an unsustainable payout level.

Let's review the four S&P 500 stocks with yields above 6%. Among Verizon Communications (NYSE: VZ), General Mills (NYSE: GIS), Pfizer (NYSE: PFE), and Kraft Heinz (NASDAQ: KHC), which offers the strongest buy and most reliable dividend stream?

Image source: Getty Images.

A look at the key metrics

Dividend analysis begins with yield. All four stocks exceed 6%, marking them as high-yielding options. Pfizer leads with the highest yield in this group.

Verizon: 6.74% yield
General Mills: 6.46% yield
Pfizer: 7.20% yield
Kraft Heinz: 6.40% yield

Next consider the payout ratio, or the share of earnings allocated to dividends. Ratios above 60% to 70% may limit funds for expansion or risk future cuts. Pfizer again shows the lowest ratio here.

Verizon: 57.6% payout ratio
General Mills: 68.7% payout ratio
Pfizer: 56.2% payout ratio
Kraft Heinz: 62.7% payout ratio

Dividend growth history also matters as it reflects ongoing financial health and commitment. Verizon leads with the longest streak of annual increases.

Verizon: 21 years in a row
General Mills: 6 years in a row
Pfizer: 15 years in a row
Kraft Heinz: 0 years in a row

Verizon is the best choice

While other factors warrant review, these metrics highlight payout sustainability. Pfizer and Verizon emerge as frontrunners, with Pfizer edging ahead on yield and payout ratio while Verizon demonstrates superior long-term dividend growth consistency.

Stock performance also reveals whether high yields stem from price declines. Year to date, General Mills has fallen about 20%, Pfizer is down 2%, Kraft Heinz has risen 4%, and Verizon is up 2%. Including reinvested dividends, Kraft Heinz and Verizon show 6% total returns year to date.

Over longer periods, only Verizon maintains positive results. Its three-year annualized return stands at 4% and reaches 11% with dividends reinvested. Five-year figures show a negative 6% price return but a modest 0.4% total return. The ten-year annualized total return is 2%. Pfizer posts a positive 1% ten-year annualized total return while the remaining stocks lag.

Considering all data, Verizon emerges as the strongest dividend stock above 6%. Analysts largely concur, with 41% issuing buy ratings and a median target of $50.50 per share, suggesting 22% potential upside.

Should you buy stock in Verizon Communications right now?

Before purchasing shares of Verizon Communications, review this perspective:

The Motley Fool Stock Advisor team recently highlighted the 10 best stocks for investors to consider now, and Verizon Communications did not appear on that list. The selected stocks may deliver substantial gains ahead.

Historical examples include Netflix added on December 17, 2004, where a $1,000 investment grew to $418,761. Nvidia joined on April 15, 2005, turning $1,000 into $1,195,804.

Stock Advisor has achieved an average return of 918% compared to 208% for the S&P 500. Access the current top 10 list through Stock Advisor to join a community focused on individual investor success.

View the 10 stocks.

Stock Advisor returns as of July 6, 2026.

Dave Kovaleski holds no positions in the mentioned stocks. The Motley Fool maintains positions in and recommends Pfizer while recommending Kraft Heinz and Verizon Communications. A disclosure policy applies.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.