Should You Buy the 3 Highest-Paying Dividend Stocks in the S&P 500?

It's smart to seek dividend income from your stock portfolio, but of course not all dividends are alike. Some stocks sport high dividend yields because their share prices have sunk. (As a stock's price falls, its dividend yield goes up, and vice versa.) And some of those shares have fallen for good reason.

So should you buy into three of the highest-yielding stocks in the S&P 500 index? Let's see.

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1. The Campbell's Co.

The Campbell's Co. (NASDAQ: CPB) is home to brands such as Campbell's, Prego, Rao's Homemade, Pace, and V8, as well as Goldfish, Lance, Snyder's of Hanover, Pepperidge Farm, Cape Cod, and Kettle.

This stock has indeed fallen in price -- by 41% over the past year, as of March 19. That has pushed up its dividend yield to a tasty 7.4%. Is it in trouble? Should you buy into it?

Well, in this case, the stock does look attractive, with a recent forward-looking price-to-earnings (P/E) ratio of 9 -- well below its five-year average of 14.

Shares are down partly because Campbell's overpaid for its 2018 acquisition of Snyder's-Lance. In addition, costs are going up due to inflation, while management is tempering growth expectations. But the company boasts industry-leading market share across many of its key brands. And recently it's been focusing more on healthier offerings and leaning into its meals and beverages segment, which is doing better than its snack brands.

2. Healthpeak Properties

Healthpeak Properties (NYSE: DOC) is a real estate investment trust (REIT) -- a company that buys up real estate (in this case, healthcare buildings) and then leases them out. Its price has dropped by 7% over the past year, pushing its dividend yield up to a fetching 6.9%.

Healthcare REITs have a lot going for them, such as an aging population that's likely to need lots of care. Healthpeak Properties is a particularly interesting one, as it's spinning off Janus Living, which will specialize in senior living facilities. (Healthpeak will retain majority ownership of Janus.) Healthpeak's remaining portfolio of about 700 properties nationwide is focused mainly on medical outpatient buildings (like the ones where many doctors practice) and laboratories.

This company, too, may be a good fit for your portfolio. Dig a little deeper into it to see what you think.

3. Kraft Heinz

Kraft Heinz (NASDAQ: KHC) needs little introduction, as your home probably houses some of its offerings, with brands such as Oscar Mayer, Ore-Ida, Velveeta, Jell-O, Grey Poupon, Lunchables, Kool-Aid, Capri Sun, and Smart Ones. The stock has sunk by around 22% over the past year, pushing up its dividend yield to a recent 7.4%.

Should you buy into this blue chip stock? Well, maybe. Warren Buffett invested in it and lost money. But lately shares have been more attractively priced, with a recent forward P/E ratio of 10.6 -- a bit below their five-year average of 12.2.

The company is investing about $600 million in freshening its brands and commercial capabilities. Its new CEO, Steve Cahillane, said in a press release: "My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan." Anyone investing now can collect a generous dividend while waiting for a turnaround.

Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool recommends Campbell's, Healthpeak Properties, and Kraft Heinz. The Motley Fool has a disclosure policy.