Dividend stocks compared by yield and payout ratio

As of May 2026, Dow has cut its dividend, while several major US stocks have updated yields and payout ratios. Here’s how they compare.

Learn what dividend stocks are, how dividend yield is calculated, which factors may affect dividend sustainability, and how prominent US dividend stocks compare by key metrics.

What are dividend stocks?

Dividend stocks are shares of publicly traded companies that regularly distribute part of their earnings or cash flow to shareholders. These payments can supplement any potential capital gains from rising share prices, although dividends and share price gains are never guaranteed.

Dividends are usually paid quarterly, monthly, semi-annually or annually, depending on the company and region. They’re often used by established companies to return capital to shareholders and can form part of a wider assessment of a stock’s income profile.

You may have heard the term ‘dividend aristocrats’. These are companies in the US 500 that have increased their dividend payouts annually for at least 25 consecutive years and meet specific inclusion criteria. Examples include Coca-Cola (KO), McDonald’s (MCD), Johnson & Johnson (JNJ), Procter & Gamble (PG), ExxonMobil (XOM), and Chevron (CVX).

How to find the ‘best’ dividends in the stock market

The ‘best’ dividend stocks aren’t always those with the highest yields. A high yield can reflect a rising dividend, but it can also result from a falling share price. Traders often compare several measures to understand whether a dividend appears consistent with a company’s earnings, cash flow and wider financial position.

Dividend yield is the annualised dividend payout divided by the stock price, expressed as a percentage. It can help compare dividend shares, but it should be viewed alongside the share price trend, earnings and any recent dividend changes.

Payout ratio shows the proportion of earnings paid out as dividends. A ratio of 30.00%-60.00% is often viewed as moderate, but the appropriate level varies by sector. Some companies can sustain higher ratios because of their business model, while others may face pressure if earnings fall.

Dividend growth indicates whether a company has increased its dividend over time. A long record of increases may point to consistent shareholder distributions, but it doesn’t guarantee future payments.
Industry and stability can also be relevant. Consumer staples, healthcare, telecoms and utilities often include established companies with recurring revenue streams. However, each stock should still be assessed on its own fundamentals, including earnings, debt, cash flow and dividend history.
Ex-dividend date determines eligibility for the next dividend payment. Shareholders must own the underlying shares before this date to receive the upcoming dividend. For CFD traders, this matters because a dividend adjustment may apply when a qualifying position is held over the ex-dividend date, but this isn’t the same as receiving a traditional shareholder dividend.

The value and financial stability of dividend stocks can change over time. Traders should use recent, reliable and qualified sources, including company results, regulatory filings and independent technical analysis.

Learn more about dividends and how they work in our trader’s guide to dividends.

Top 10 overall dividend stocks

Here are 10 prominent US dividend stocks, as of 27 May 2026, assessed using yield, payout ratio, dividend history, sector, ex-dividend dates and stability. These examples are for information only and don’t constitute investment advice.

Rank	Stock	Industry	Trailing dividend yield*	Payout ratio
1	ExxonMobil (XOM)	Energy	2.70%	68.07%
2	Johnson & Johnson (JNJ)	Healthcare	2.32%	60.68%
3	Verizon Communications (VZ)	Telecommunications	5.82%	67.32%
4	Procter & Gamble (PG)	Consumer staples	2.98%	61.24%
5	Medtronic (MDT)	Healthcare	3.61%	78.65%
6	Comcast (CMCSA)	Telecommunications	5.28%	25.76%
7	PepsiCo (PEP)	Non-alcoholic beverages	3.62%	72%
8	Altria (MO)	Tobacco	5.86%	88.61%
9	Kimberly-Clark (KMB)	Consumer staples	5.26%	78.95%
10	Chevron (CVX)	Energy	3.78%	120.75%

*Trailing dividend yield represents the total dividend paid per share over the past 12 months, expressed as a percentage of the share price. Current data should be checked before publication against company filings and financial data providers. Recent dividend data shows ExxonMobil’s annual dividend at $4.12 per share, Verizon’s at $2.83, Altria’s yield above 5%, and Chevron’s annual dividend at $7.12, though yields move with share prices.

ExxonMobil is an integrated energy company with operations across exploration, production, refining and chemicals. As of May 2026, it has a trailing dividend yield of 2.70% and a payout ratio of 68.07% (Koyfin, May 2026). Its annual dividend is around $4.12 per share, paid quarterly at $1.03 (Simply Wall St, May 2026). The company has a long record of shareholder distributions, but its dividend remains closely linked to energy prices, capital expenditure, earnings and cash flow. The higher payout ratio compared with late 2024 suggests earnings coverage is less wide than before, so traders may want to assess the dividend alongside oil and gas market conditions.

Johnson & Johnson is a healthcare company with operations across pharmaceuticals and medical technology. In April 2026, it raised its quarterly dividend by 3.10% to $1.34 per share, marking its 64th consecutive year of dividend increases (Johnson & Johnson Investor Relations, 13 April 2026). Its trailing dividend yield is 2.32%, while its payout ratio has improved to 60.68%. That puts the earnings-based payout ratio closer to a moderate range than the previous figure near 80.00%. For traders, Johnson & Johnson's long dividend record may be relevant, but it should be considered alongside healthcare regulation, product pipeline performance, litigation risks and earnings growth.

Verizon is a major US telecommunications company with operations across wireless, broadband and enterprise connectivity. As of May 2026, its annual dividend is around $2.83 per share, with a trailing yield of 5.82% and a payout ratio of 67.32% (Koyfin, May 2026). Recent dividend data shows a quarterly payment of $0.71 per share (DividendMax, May 2026). This is a material change from the previous payout ratio above 100% (Fidelity UK, 2026). The lower ratio suggests earnings coverage has improved relative to the dividend commitment. Even so, telecoms companies can carry high capital expenditure and debt requirements, so cash flow, 5G investment costs, subscriber trends and refinancing conditions remain relevant.

Procter & Gamble operates in the consumer staples sector, with brands across household, personal care and hygiene products. In April 2026, P&G raised its quarterly dividend by 3.00% to $1.09 per share and recorded its 70th consecutive year of dividend increases (Yahoo Finance / Business Wire, 14 April 2026). Its trailing dividend yield is 2.98%, with a payout ratio of 61.24%. P&G's dividend history reflects the scale and consistency of its consumer goods business, but traders should still consider input costs, currency effects, consumer demand and margin pressure.

Medtronic is a global medical technology company with products across cardiovascular care, neuroscience, surgery and diabetes management. Its annual dividend is around $2.84 per share, with a trailing dividend yield of 3.61% and a payout ratio of 78.65% (Koyfin, March 2026). The payout ratio remains higher than some stocks in this list, although it has improved from the previous level. For traders, Medtronic's dividend profile should be assessed alongside medical device demand, regulatory approvals, product cycles and earnings growth.

Comcast operates across broadband, media, streaming, film production and theme parks. As of May 2026, its annual dividend is around $1.32 per share, with a trailing dividend yield of 5.28% and a payout ratio of 25.76% (Koyfin, May 2026). The yield has risen notably since late 2024, largely reflecting share price weakness rather than dividend growth. A lower payout ratio can indicate more earnings coverage, but it doesn't remove wider business risks. Broadband subscriber trends, streaming costs, advertising demand and debt levels all remain relevant.

PepsiCo is a global food and beverage company with brands across soft drinks, snacks and packaged foods. Its trailing dividend yield is 3.62%, and its payout ratio is approximately 72%, depending on the calculation period used. The company announced a 4% increase in its annualised dividend, expected to begin with the June 2026 payment (Investing.com, 4 February 2026). PepsiCo also said 2026 marked its 54th consecutive annual dividend increase (PepsiCo Newsroom, 6 May 2026). Its diversified product base can support recurring revenue, but dividend sustainability still depends on earnings, pricing power, input costs, consumer demand and currency movements.

Altria is a tobacco company with a long dividend history and a high yield relative to many large-cap US stocks. As of May 2026, its trailing dividend yield is 5.86%, with a payout ratio of 88.61% (Koyfin, May 2026). MarketBeat data also shows Altria's yield above 5.00%, though the exact figure can move with the share price. The payout ratio is elevated, so it should be treated as a risk factor rather than a standalone strength (Altria Investor Relations, May 2026). Altria's dividend profile should be viewed in the context of tobacco regulation, declining cigarette volumes, pricing power, alternative nicotine products and capital allocation priorities.

Kimberly-Clark is a consumer staples company with household and personal care brands across categories such as tissues, nappies and hygiene products. As of May 2026, it has a trailing dividend yield of 5.26% and a payout ratio of 78.95% (Koyfin, May 2026). The company's annual dividend is $5.12 per share, and it has increased its dividend for 54 consecutive years (Yahoo Finance, January 2026). That places Kimberly-Clark among the dividend aristocrats, with a long record of shareholder distributions. Its yield sits within the range of other higher-yielding stocks on this list, while its metrics are more straightforward than Dow's following the latter's dividend cut and recent net loss. Traders should still assess Kimberly-Clark's dividend profile alongside earnings, margins, input costs, consumer demand and debt levels.

Chevron is an integrated energy company operating across oil, gas, refining and related activities. As of May 2026, its annual dividend is around $7.12 per share, or $1.78 quarterly, with a trailing dividend yield of 3.78% (Wall Street Zen, May 2026). Its earnings-based payout ratio has risen to 120.75%, which is above 100% and should be treated with caution (Koyfin, May 2026). Some dividend data providers show a similar earnings-based payout ratio above 120% (Wall Street Zen, May 2026). That said, earnings-based payout ratios can be affected by commodity cycles, impairments and other accounting factors. Cash flow coverage may provide a fuller picture for energy companies, so traders should compare earnings, free cash flow, capital expenditure and debt before assessing dividend sustainability.

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FAQ

What is a dividend aristocrat?

A dividend aristocrat is a company in the US 500 that has increased its dividend payout every year for at least 25 consecutive years and meets the index’s other inclusion criteria. These companies are often large, established businesses, but dividend aristocrat status doesn’t guarantee future dividend payments or share price performance.

How can traders compare dividend stocks?

The best dividend stocks to trade depend on a trader’s objective, timeframe and risk tolerance. Some traders focus on higher yields, while others look at dividend growth, payout ratios, cash flow or sector stability. As of 27 May 2026, examples of prominent dividend stocks include Verizon (VZ), Altria (MO), Chevron (CVX), ExxonMobil (XOM), Johnson & Johnson (JNJ), Procter & Gamble (PG) and PepsiCo (PEP). However, figures and risk profiles can change, so traders should check the latest company data before trading. Past performance doesn’t guarantee future results.

How do I start trading dividend stocks via CFDs?

To trade dividend stocks via contracts for difference (CFDs), you’ll need to open an account with a CFD trading provider. CFDs allow you to speculate on share price movements without owning the underlying shares. If you hold a long share CFD position over the ex-dividend date, a dividend adjustment may be credited to your account. If you hold a short position, a dividend adjustment may be debited. This isn’t the same as receiving a traditional dividend as a shareholder. CFDs are traded on margin. Leverage amplifies both profits and losses.