There Are Only a Handful of S&P 500 Stocks That Yield Over 5%. Here's My Top Pick to Buy in September.
Income investors now have another compelling option as the number of high-yielding blue chips gets smaller.
Interest rates for U.S. Treasuries have reached multiyear highs, prompting income investors to consider alternative options. Traditionally, dividend stocks provided yields that are now being matched or surpassed by longer-term bonds. For instance, 30-year Treasuries are yielding 5.25%. To justify their risk, income-generating stocks must offer unique advantages over safer bonds with similar yields.
Among S&P 500 constituents, Verizon Communications (NYSE: VZ) stands out as a top pick for September. With a forward yield of 5.7%, Verizon is currently the top cellphone service provider in the United States, serving nearly 147 million mobile devices and nearly 350,000 broadband internet customers.
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