Should You Buy the 3 Highest-Yielding Dividend Stocks in the Nasdaq?

There's much to be said about the pros and cons of buying high-yield dividend stocks, and they come in lots of sizes. But for most investors, it may be better to focus on larger, more established companies that offer a high yield.

This way, one can avoid getting stuck in the weeds with some of the more complex dividend stocks out there, such as closed-end funds (CEFs) and master limited partnerships (MLPs). While these stocks can be profitable in the long term, especially for those seeking steady income from their portfolios, they may not be the best choice for buy-and-hold investors focused on long-term capital growth.

For regular buy-and-hold investors, selecting the highest-yielding stocks from a major stock index, such as the Nasdaq-100, will result in a list consisting mainly of blue chip dividend stocks, each with a solid track record of earnings and dividend growth.

Currently, these are the three highest-yielding stocks from this Nasdaq 100 index: Kraft Heinz (NASDAQ: KHC), Paychex (NASDAQ: PAYX), and Comcast (NASDAQ: CMCSA).

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Kraft Heinz yields 7%, and remains a turnaround contender

Packaged foods giant Kraft Heinz has been floundering for years. Late last year, management proposed a plan that it saw as a viable path toward unlocking shareholder value: a spin-off of the company's faster-growing condiments and shelf-stable meals business from its slower-growing grocery staples business.

However, following pressure from major Kraft Heinz shareholder Berkshire Hathaway, the company has put these plans on pause, pivoting toward a turnaround plan more greatly focused on using the proceeds from cost-cutting measures to finance greater marketing and research investment into its core brands.

Only time will tell whether this plan pans out. However, if you're bullish on the company's "staying as one" turnaround plan, there is an additional incentive to maintain a position. That would be Kraft Heinz's 7% forward dividend yield.

Fade AI disruption fears with high dividend Paychex

Payroll stocks have had a rough go of it lately. Paychex is no exception. Shares in the payroll processor and outsource HR services company have fallen by more than 35% over the past year. Blame this on multiple factors, including sluggish employment numbers and lower-than-expected growth.

To some extent, fears regarding the rise of artificial intelligence (AI), and its future impact on the labor market, has also weighed on Paychex shares. However, these issues could soon clear up. Despite the macro and AI-related worries, Paychex is still guiding for double-digit earnings growth this fiscal year.

Paychex's integration of AI into its platforms is one reason for its optimistic outlook. Other factors, such as its recently approved $1 billion share repurchase program , could also contribute toward EPS growth. Currently trading for just under 16 times forward earnings, improved sentiment could push the stock back up to its historic valuation between 20 and 25 times earnings. In the meantime, investors buying Paychex to fade AI fear can collect the stock's 4.6% dividend yield.

Comcast could continue unlocking its underlying value

Even among media conglomerates, Comcast is very diversified. The company not only provides cable and internet services but also owns NBCUniversal, the streaming service Peacock, and the Universal Studios theme park chain. However, a steady breakup could be underway.

Back in January, the company spun off its cable networks business as a separate, independent company, Versant Media Group. Admittedly, both stocks have experienced choppy performance since the spinoff. However, if the deal does indeed unlock value over time, Comcast may consider further such efforts. After the Warner Bros. Discovery bidding war between Netflix and Paramount Skydance, Netflix may be interested in acquiring Comcast's remaining media and streaming assets.

Comcast shares trade for only 8 times forward earnings. Selling or spinning off its other business, much of which trade at a higher valuations, could serve as a positive catalyst for share. In the meantime, investors can collect Comcast's 4.6% dividend yield. This yield makes it the third highest-paying dividend stock among the Nasdaq-100.

Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Netflix, and Warner Bros. Discovery. The Motley Fool recommends Comcast, Kraft Heinz, and Versant Media Group. The Motley Fool has a disclosure policy.