Meet the 4 S&P 500 Dividend Stocks That Yield at Least 6%. Here's My Strongest Buy of the Bunch in July.

Four stocks connected the S&P 500 pay retired dividends of much than 6% -- not including a mates that are existent property concern trusts (REITs), which are required by national statute to wage retired astir of their income successful dividends successful speech for definite taxation breaks.

A 6% dividend output is highly high, but it is not ever arsenic bully arsenic it whitethorn look connected the surface. It whitethorn beryllium a trap, due to the fact that it's the percent of the stock terms that goes to dividends. So erstwhile a banal tanks, the output goes up if the dividend is not chopped -- and that tin make an unsustainable dividend payout.

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Let's analyse the 4 S&P 500 stocks with yields of much than 6%. Of Verizon Communications (NYSE: VZ), General Mills (NYSE: GIS), Pfizer (NYSE: PFE), and Kraft Heinz (NASDAQ: KHC), which of the 4 is the champion bargain and has the astir sustainable dividend?

A look astatine the cardinal metrics

When examining dividend stocks, determination are respective metrics to consider, starting with yield. All 4 of these stocks person yields that are implicit 6%, truthful they are each high-yielding. Here's a breakdown -- and you'll see, Pfizer has the champion yield.

• Verizon: 6.74% output

• General Mills: 6.46% output

• Pfizer: 7.20% output

• Kraft Heinz: 6.40% yield 

Now let's look astatine the payout ratio, which is the percent of net that goes to dividends. A precocious payout ratio of 60% to 70% oregon much tin mean the institution is paying retired excessively overmuch to enactment its dividend, diverting funds from maturation investments oregon starring to a dividend cut. Here are the payout ratios -- and Pfizer is again the victor with the lowest payout ratio of the group.

• Verizon: 57.6% payout ratio

• General Mills: 68.7% payout ratio

• Pfizer: 56.2% payout ratio

• Kraft Heinz: 62.7% payout ratio 

Another happening to see is however agelong the institution has been expanding its dividend. This shows a semipermanent committedness and the fiscal spot to prolong the dividend. Here is however galore consecutive years each has raised its dividends -- and Verizon ranks archetypal this time.

• Verizon: 21 years successful a enactment

• General Mills: 6 years successful a enactment

• Pfizer: 15 years successful a enactment

• Kraft Heinz: 0 years successful a row 

Verizon is the champion prime

These are not the lone metrics investors should consider, but they spell a agelong mode toward showing however sustainable the precocious dividend payout is. Based connected these numbers, Pfizer and Verizon look similar the champion 2 of the bunch, with Pfizer gaining a flimsy borderline successful output and payout ratio and Verizon showing stronger semipermanent dividend growth.