A lot sure has changed since the last time we looked at the Top 10 S&P 500 dividend stocks, and almost all of those changes are good. About a month ago, the S&P 500 was down nearly 6% for the year-to-date, and everyone was getting nervous about what it would take for stocks to arrest that slide.
Cut to today, and anxious chatter about a full-blown correction has quieted down. That’s what happens when the broader market rises more than 4% in a month to once again hit record highs. Stocks are positive for the year-to-date, and we’re celebrating a gain of 177% for the S&P 500 on the bull market’s fifth anniversary.
There’s not much downside to any of this, but it does make investing in dividend stocks a little trickier. After all, yields on dividend stocks decline as share-price rises. The yield on the S&P 500 currently stands at 1.92%. A year ago, it was at 2.14%
At the same time, bond have sold off, meaning yields on fixed income are higher now than they were a year ago. As a result, dividend stocks have more competition for buyers these days. (Bond prices and yields move in opposite directions.) The yield on the benchmark 10-year Treasury note is up to 2.79% from 2% around this time last year.
So yield is getting a bit harder to come by among dividend stocks, and they could see some rotational selling as investors look elsewhere for income. And yet, some dividend stocks in the S&P 500 still throw off gushers yields. Indeed, some of the yields on these dividend stocks would make junk bonds blush.
To get a sense of what’s out there among high-yield dividend stocks, here are the top 10 S&P 500 dividend stocks for March. (Note: All dividend yields are as of 10 a.m., Mar. 11.)