Best dividend stocks in the S&P 500
1 of the 390 dividend payers we score pass four checks: a dividend score of at least 55, a yield between 2% and 8%, a dividend covered by free cash flow, and financial health of at least 45. The list is ranked, not recommended: high-ranking stocks can still fall, and dividends can be cut. Scores as of 16 Oct 2026.
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Information Technology: Dividend stocks ranked by dividend score
| # | Stock | Yield | Payout of FCF | 3y dividend growth | Dividend score | Health |
|---|---|---|---|---|---|---|
| 1 | ACN Accenture plc | 2.87% | 34% | +12.1% | 67 | 54 |
Yield is the trailing 12 months of dividends over the latest price. Payout of FCF is dividends as a share of free cash flow (under 100% means covered). 3-year dividend growth is the compound annual change in cash dividends paid. Gap to fair value is the distance between the price and our fair value estimate (positive = price below fair value). All from SEC filings and exchange data; see the methodology. One-off special dividends can inflate a trailing yield or growth figure for a few names.
How to read a dividend stock
A dividend is cash a company pays to its shareholders, usually every quarter. The yield is that cash as a percentage of the share price, so it rises when the price falls, which is why a very high yield can be a warning rather than a bargain. The payout shows how much of the company's free cash flow the dividend uses: a stock paying out most of what it earns has little cushion if business slows.
Look at growth as well as yield. A 2.5% yield that grows 8% a year can overtake a 5% yield that never moves. And check the balance sheet: debt that must be refinanced competes with the dividend for cash, which is what our financial health score looks at. Learn more in dividend yield explained, dividend payout ratio and sustainability, dividend growth investing and ex-dividend and record dates. Upcoming payments are on the dividend calendar.
Frequently asked questions
What are the best dividend stocks in the S&P 500?
There is no single best list, because the right stock depends on whether you want income today or growth in income. This page ranks S&P 500 dividend payers on our dividend score, which weighs the yield, how much of free cash flow the dividend uses, the 3-year growth of dividends paid and the length of the payment record. It then keeps only stocks with a yield between 2% and 8%, a dividend covered by free cash flow and financial health of at least 45. It is a ranking, not a recommendation.
Is a higher dividend yield better?
Not necessarily. A very high yield is often a sign that the share price has fallen because investors doubt the dividend will be kept. That is why this list stops at 8% and drops stocks whose dividend is larger than their free cash flow.
What is a dividend payout ratio?
It is the share of earnings, or here of free cash flow, that a company pays out as dividends. A payout well below 100% leaves room to keep paying if profits dip; a payout above 100% means the dividend is being paid from cash reserves or debt.
How often is this list updated?
Every night after prices, filings and dividend history are refreshed. The scores were last computed on 16 Oct 2026.
Educational information, not financial advice. Rankings use past data and stated rules; they are not buy or sell recommendations.