Analysts Pick 5 Dividend Stocks Yielding Over 5% After Earnings Beats
Updated
Updated · Barron's · May 11
Analysts Pick 5 Dividend Stocks Yielding Over 5% After Earnings Beats
4 articles · Updated · Barron's · May 11
Five stocks met a screen for dividend yields above 5% while also beating Wall Street earnings estimates last quarter: Verizon, Paychex, Kimberly-Clark, VICI Properties and Best Buy.
24 S&P 500 names yield more than 5%, but the list shrank after analysts also required expected 2026 earnings growth and a payout ratio below 90% to filter out unsustainable dividends.
Campbell illustrates the yield-trap risk: its dividend yield swelled to 7.5% from 4.2% as the stock fell 40% over 12 months, while sales dropped 5% and guidance was cut.
Verizon and Kimberly-Clark show the trade-off behind the screen—Verizon yields 6% after adding 55,000 postpaid phone customers in Q1, while Kimberly-Clark yields 5.2% despite shares falling about 28% in a year.
The appeal of the list reflects a scarce income market: the S&P 500 dividend yield is hovering near 1%, a historic low.
Only five S&P 500 stocks passed this screen. What does this scarcity signal about the health of the broader US market?
With a risky merger and CEO change, are Kimberly-Clark and Best Buy truly safe havens or just the next high-yield traps?