#1: Windstream Holdings (WIN)
Windstream (WIN) once again leads the pack of top S&P 500 dividend stocks, throwing off a whopping yield of 12.4%.
But even with the fat dividend, WIN stock is still a money loser. It’s off 19% on a price basis over the last 12 months, which makes the total return -7%. Furthermore, there are justifiable worries that taking Windstream’s famously high yield is not worth the risk. After all, Windstream is highly leveraged and pays out more in dividends than it makes in earnings.
It’s also harder to be bullish on Windstream’s operations than the other high-yield regional telecoms on this list, as WIN continues to suffer the loss of digital TV and voice services customers. Hey, you’re never going to get dividend stocks yielding more than 12% without at least a little heartburn.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.