The S&P 500 index offers a paltry 1.1% dividend yield. By that standard, even consumer products giant Procter & Gamble's (PG 1.09%) 2.8% yield looks lofty. Here's why dividend lovers may want to consider P&G, and the even higher yields on offer from real estate-focused Realty Income (O +1.00%) and pharmaceutical giant Pfizer (PFE 0.93%), as January comes to an end.
Realty Income is high yield and highly boring
Realty Income's dividend yield is 5.3%. The monthly pay dividend has been increased annually for 30 years. The dividend is backed by the real estate investment trust's (REIT's) investment-grade-rated balance sheet and a generally conservative management approach.
NYSE: O
Key Data Points
If you're a conservative dividend investor, Realty Income could be a cornerstone investment. There's just one problem. It is so large, with a portfolio of over 15,500 properties, that it is a slow-moving industry giant. To put a figure on that, the dividend has grown at a compound annual rate of 4.2% over the past three decades. That keeps pace with, or slightly exceeds, inflation, but slow and steady is the name of the game with Realty Income.
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Belt-tightening makes Procter & Gamble a Dividend King opportunity
Procter & Gamble is one of the world's largest consumer staples companies. It's largely focused on the higher end of the markets it serves. That's a problem today because economic concerns are prompting consumers to tighten their belts. Notably, the second quarter of its fiscal 2026 was a tough one for the company, with a 1% volume decline offset by 1% of price increases. That led to flat organic sales, which isn't a great result.
However, it's better than the company's consumer staples peers that are experiencing organic sales declines. Still, P&G's stock has fallen around 15% from its 52-week high. That could be setting up a buying opportunity for long-term investors in what is a highly reliable dividend stock. In fact, P&G is a member of the elite group of companies known as Dividend Kings. It has increased its dividend annually for over six decades.
That stock isn't cheap, per se, but the price-to-earnings ratio has dipped below its five-year average, suggesting at least a fair price for this reliable 2.8% yielding dividend payer.
NYSE: PG
Key Data Points
Pfizer is a turnaround story
Pharmaceutical giant Pfizer's dividend yield is 6.7%, the highest of this trio. That's because investors are worried about the company's upcoming patent expirations and its lack of success in finding new blockbuster drugs. Making matters worse, the company had a high-profile failure in the GLP-1 weight loss drug space. Investors are very downbeat on Pfizer today.
That said, nothing the company is dealing with is particularly unusual in the highly technical and competitive drug industry. Historically speaking, Pfizer has proven it can handle the industry's ebbs and flows and still remain a long-term winner. And it is taking action to ensure it can deal with its current setbacks, noting that, following its GLP-1 letdown, it has already acquired a company with a promising GLP-1 drug pipeline.
NYSE: PFE
Key Data Points
The stock's dividend payout ratio is slightly above 100%, so there is some risk of a dividend cut to consider. However, even a 50% cut would leave the yield at over 3%. For a turnaround investor, the risk/reward balance is probably tilted toward a long-term investment in Pfizer today.
Three very different high-yield options
Realty Income, P&G, and Pfizer are very different companies and very different investment opportunities. However, each offers a yield well above the broader market and long-term investment appeal. You just need to make sure your investment goals align with the investment opportunity.
