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

There's significant diversity in the S&P 500 (SNPINDEX: ^GSPC). The stocks are differentiated by huge gaps in market cap, varied industry focuses, and more. However, at least one common denominator for more than four-fifths of the stocks in the widely followed index: They pay dividends.

Even on the dividend front, though, there are still significant differences in the dividend yields that S&P 500 stocks offer. Some pay paltry yields, while others pay exceptionally juicy yields. Should you buy the three highest-paying dividend stocks in the S&P 500?

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1. LyondellBasell Industries

LyondellBasell Industries (NYSE: LYB) is a global chemical company headquartered in Houston, Texas, and London, England. It's one of the largest producers of polymers used in automotive components, food packaging, home furnishings, paints, and more. The company also operates a refinery and markets polyolefin process technologies and catalysts.

No other S&P 500 member comes close to matching LyondellBasell's forward dividend yield of 12.8%. In addition to this ultra-high yield, the company also has a solid track record of dividend increases, having raised its dividend for 15 consecutive years.

LyondellBasell's dividend yield is so high because its stock has declined sharply in recent years. The company continues to face multiple challenges, including a polyolefin supply glut, uncertainty related to tariffs, and soft demand in several markets.

Is the S&P 500's highest-paying dividend stock a good pick right now? I don't think so. Although management continues to make the dividend program a top priority, LyondellBasell has limited financial flexibility. There's also no way to know how long it will be before the challenging market dynamics improve.

2. ConAgra Brands

ConAgra Brands (NYSE: CAG) is a leading food company based in Chicago, Illinois. Its brands include Birds Eye frozen foods, Duncan Hines baking mixes and frostings, Healthy Choice frozen foods, Marie Callender's frozen meals, Slim Jim meat snacks, and more. ConAgra was founded in 1919.

The company's forward dividend yield is roughly 7.9%, ranking ConAgra as the second-highest-paying dividend in the S&P 500. Although ConAgra has only increased its dividend for six consecutive years, it has paid a dividend every quarter since January 1976.

There's a not-so-great reason behind ConAgra's high dividend yield. The food stock has plunged more than 55% below its peak set in early 2023. High inflation has provided a double whammy, pushing the company's input costs higher while driving customers to lower-cost alternatives.

ConAgra is scheduled to report its fiscal 2026 second-quarter results on Friday, Dec. 19, 2025. Unless the company delivers surprisingly good news in its quarterly update, I view this stock as one to watch from the sidelines for now.

3. Healthpeak Properties

Healthpeak Properties (NYSE: DOC) is a real estate investment trust (REIT) that focuses on the healthcare sector. It owns 703 properties, including outpatient medical facilities, labs, and senior housing campuses. Healthpeak's top tenant is health systems giant HCA Healthcare (NYSE: HCA), which accounts for 9% of the REIT's total annualized base rent.

As a REIT, Healthpeak Properties must return at least 90% of its income as dividends to shareholders to be exempt from federal income taxes. The company has generated a substantial amount of income to return, as evidenced by its forward dividend yield of 7.5%. This yield ranks Healthpeak as the S&P 500's third-highest dividend-paying stock.

In addition to paying a juicy dividend, Healthpeak shares something else in common with LyondellBasell and ConAgra Brands. The REIT's share price has plummeted in recent years. One major problem for the company is a weak lab market, with vacancy rates of around 30%.

Healthpeak's dividend appears to be relatively safe for now, with a 71% adjusted funds from operations payout ratio. There are also some positive signs for the company. Outpatient medical demand is growing robustly. Interest rates have declined. Some signs indicate a turnaround in the biopharmaceutical sector. However, I'd prefer to see the stock display more strength before buying.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends HCA Healthcare and Healthpeak Properties. The Motley Fool has a disclosure policy.