Traders love blue-chip shares that pay fats dividends, however excessive yield alone doesn’t assure a protected earnings stream.
Under are the highest large-cap U.S. shares with the best yields, adopted by why some could also be worth traps quite than treasure chests.
Based on Benzinga Professional, the highest high-yield massive 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.
Additionally Learn: Elon Musk’s xAI Reportedly Lays Off 500 Employees From Knowledge Annotation Crew As Startup Pivots To Specialist AI Tutors For Grok Enlargement
The yield (dividend ÷ value) appears massive when the inventory value drops sharply.
LyondellBasell’s (down 40% over the previous 12 months) double-digit dividend yield appears dangerous as earnings missed expectations in second-quarter 2025 monetary outcomes, free money move turned damaging, and cyclical headwinds weigh on oxyfuels and European operations.
But administration’s $1.1 billion money enchancment plan, asset gross sales, and disciplined capex cuts recommend the corporate is positioning itself to protect dividends and profit if demand and margins get better.
For Pfizer, which is down 18% over the previous 12 months, particularly after COVID-vaccine/antiviral income dropped.
Its present yield appears engaging—nevertheless it’s pushed partially by main declines in key earnings strains. Pfizer pays out practically all its free money move. In a single latest evaluation by the Rich Retirement, payout was about 97% of free money move. That leaves little margin if earnings or money move falter.
Per market information, Altria additionally pays a big chunk of earnings, which works whereas enterprise is steady—however any regulation, litigation, or decline in cigarette quantity can threaten that.
A few of these firms face structural decline. Infrastructure, chemical substances, and telecom corporations might even see margin stress, vitality value points, or regulatory threat.
Backside Line
These blue-chips with the best dividend yields can seem like earnings gems — notably for these looking for present money returns.
However many carry actual dangers: falling earnings, payout ratios close to or above protected thresholds, sector declines, or dependence on money move that will not be sustainable.
They will not be traps per se, however a number of warrant warning.
Money move statements, the historical past of dividend development, and whether or not a excessive yield stems from underlying weak spot are widespread elements in evaluating these shares.
Learn Subsequent:
Picture: Shutterstock/zimmytws
