It is that time of the year again, time to publish the top dividend stocks on the S&P500, as of April 30th 2010. Frontier Communications Corp (FTR) remains at the top and is currently the only stock in the S&P500 with a dividend yield over 10%. As I’ve said before, I continue to be more careful with communications companies simply because a lot is going on in their environment. For example, FTR currently has a pending deal with Verizon which could have an impact on its future profitability and dividends. The next two companies, Windstream Corp (WIN) and Century Tel (CTL) are also communications companies that face fierce competition. Verizon (VZ) and AT&T (T), two mobile phone carriers are also among the top dividend payers. AT&T is a very dependant on Apple’s Iphone business which could be seen as a good or a bad thing depending on what you think Apple will do in the near future.
So the top non-communications company is Reynolds American (RAI), a holding company that is mainly involved in the tobacco industry and next up AltriaGroup Inc (MO), another tobacco player. They would seem like a safer bet although additional research would be needed on any of these companies.
Of course, tobacco companies would fall out of the investment possibilities for many who do social investing but for the majority, it is a business like any other.
Good luck with your research!
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