Why These 3 S&P 500 Stocks Offer Sky-High Dividend Yields—Despite Falling Prices
Dividend payments remain common among major US companies, with over four-fifths of S&P 500 stocks offering yields. Yet some of the highest yields stem not from generous payouts but from sharp declines in share prices. Three firms currently stand out with exceptionally high forward dividend yields: LyondellBasell, ConAgra Brands, and Healthpeak Properties.
LyondellBasell Industries now leads the S&P 500 with a forward dividend yield of 12.8%. The chemical manufacturer has increased its dividend annually for 15 straight years. However, its elevated yield largely reflects a steep drop in its stock price over recent years.
ConAgra Brands follows closely with a 7.9% yield, the second-highest in the index. The food producer has maintained an unbroken streak of quarterly dividends since January 1976. Yet its share price has fallen by 55% from its early 2023 peak, pushing the yield higher.
Healthpeak Properties ranks third with a 7.5% yield, though its dividend appears relatively secure. The real estate investment trust (REIT) maintains a 71% payout ratio based on adjusted funds from operations. Its high yield is tied to a prolonged stock decline, driven by a weak lab market and broader challenges in life-science and medical-office sectors.
The REIT’s struggles include falling funds from operations, leasing difficulties, and lower rent growth in key markets. Asset sales and portfolio adjustments have signalled reduced growth expectations, while rising interest rates have increased borrowing costs and compressed valuations. Investor concerns have also grown over exposure to specialty sectors like suburban medical offices, which face cyclical demand shifts. Management changes and broader market volatility during rate hikes have added to the pressure.
While these companies offer some of the highest yields in the S&P 500, their elevated payouts reflect stock declines rather than rising profitability. LyondellBasell’s long dividend growth streak contrasts with its falling share price, while ConAgra Brands’ consistent payments coincide with a steep market drop. Healthpeak Properties’ yield, though covered by cash flow, remains tied to sector-specific challenges and broader economic pressures.
