2024-02-23 05:41:00 ET
With the S&P 500 hovering around an all-time high, some investors might be looking for safer investments that generate passive income without the stock market needing to go higher. The S&P 500 has long been a source of passive income. But investing in an S&P 500 index fund yields just 1.5% right now, far lower than the risk-free 10-year Treasury rate at 4.2%.
The S&P 500's yield is down because the index's growth has outpaced the growth rate of many top dividend stocks, and the fact that the index is now made up of a higher percentage of companies that don't pay dividends at all (or very low dividends).
Chevron (NYSE: CVX) , United Parcel Service (NYSE: UPS) , and Coca-Cola (NYSE: KO) all yield more than double the S&P 500. Here's why each dividend stock is worth buying now.
For further details see:
3 Dividend Stocks to Buy That Yield More Than Double the S&P 500