If there’s a bright side to the market’s recent stumbles, it’s that the aggregate yield on dividend stocks rose for the first time in months.
As anyone who’s been hunting for dividend stocks in this bull market knows, decent yields have been harder to find than ever. Sure, companies are shelling out record levels of cash on dividends and share buybacks, but record-high stock prices are tamping down dividend yields for new money. (Yields and prices move in opposite directions for dividend stocks.)
Now, for the first time since the market swooned in the spring, dividend yields are actually higher than they were a month ago. Indeed, the yield on the S&P 500 stands at 1.95%, according to Yardeni Research. A month ago it was 1.91%.
True, that’s still a pathetically slim dividend yield — something investors in dividend stocks have had to deal with throughout this period of rising prices and ultra-low interest rates. At this time last year, the dividend yield on the S&P 500 was 2.04%.
Fortunately for investors in dividend stocks, the stocks in S&P 500 with the highest dividend yields still offer plenty of income for new money.
To get a sense of the best dividend yields to be found, here are the top 10 S&P 500 dividend stocks for August. (Note: Dividend yields are as of Aug. 11.)