Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTDave Kovaleski, The Motley FoolMon, July 6, 2026 at 2:57 PM GMT+2 4 min readFour stocks on the S&P 500 pay out dividends of more than 6% -- not including a couple that are real estate investment trusts (REITs), which are required by federal statute to pay out most of their income in dividends in exchange for certain tax breaks.A 6% dividend yield is extremely high, but it is not always as good as it may appear on the surface. It may be a trap, because it's the percentage of the share price that goes to dividends. So when a stock tanks, the yield goes up if the dividend is not cut -- and that can create an unsustainable dividend payout.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Let's examine the four S&P 500 stocks with yields of more than 6%. Of Verizon Communications (NYSE: VZ), General Mills (NYSE: GIS), Pfizer (NYSE: PFE), and Kraft Heinz (NASDAQ: KHC), which of the four is the best buy and has the most sustainable dividend?Image source: Getty Images.A look at the key metricsWhen examining dividend stocks, there are several metrics to consider, starting with yield. All four of these stocks have yields that are over 6%, so they are all high-yielding. Here's a breakdown -- and you'll see, Pfizer has the best yield.Verizon: 6.74% yieldGeneral Mills: 6.46% yieldPfizer: 7.20% yieldKraft Heinz: 6.40% yield Now let's look at the payout ratio, which is the percentage of earnings that goes to dividends. A high payout ratio of 60% to 70% or more can mean the company is paying out too much to support its dividend, diverting funds from growth investments or leading to a dividend cut. Here are the payout ratios -- and Pfizer is again the winner with the lowest payout ratio of the group.Verizon: 57.6% payout ratioGeneral Mills: 68.7% payout ratioPfizer: 56.2% payout ratioKraft Heinz: 62.7% payout ratio Another thing to consider is how long the company has been increasing its dividend. This shows a long-term commitment and the financial strength to sustain the dividend. Here is how many consecutive years each has raised its dividends -- and Verizon ranks first this time.Verizon: 21 years in a rowGeneral Mills: 6 years in a rowPfizer: 15 years in a rowKraft Heinz: 0 years in a row Verizon is the best choiceThese are not the only metrics investors should consider, but they go a long way toward showing how sustainable the high dividend payout is. Based on these numbers, Pfizer and Verizon look like the best two of the bunch, with Pfizer gaining a slight edge in yield and payout ratio and Verizon showing stronger long-term dividend growth.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info