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High-Yield S&P 500 Focus: MSN Money's March 2024 Investment Blueprint

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  Published in Stocks and Investing on Sunday, November 16th 2025 at 11:41 GMT by 24/7 Wall St.

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A Quick Take on “My November Investment Plan: Buy the Highest‑Yielding S&P 500 Stocks”

The March 2024 feature on MSN Money offers a concise, data‑driven guide for investors who want to add dividend‑heavy positions to their portfolios in the coming month. Written by a seasoned portfolio manager, the article explains why a focus on high‑yield S&P 500 constituents can be a smart move in today’s low‑interest‑rate, inflation‑conscious market. It then lists the top ten U.S. equities by dividend yield, provides a snapshot of each company’s fundamentals, and gives readers a practical framework for adding these stocks to their own holdings.

Why the “High‑Yield” Focus Makes Sense Right Now

The article begins by laying out the macro backdrop. After the Federal Reserve’s aggressive rate hikes, short‑term bond yields have peaked and are starting to decline again, squeezing the return on cash and fixed‑income holdings. For investors who need income—whether for living expenses, funding a portfolio strategy, or simply as a buffer against market volatility—dividend‑paying stocks can be an attractive alternative.

It stresses, however, that “yield” alone is not enough. A high dividend yield can simply be a sign that a company’s stock price has fallen dramatically, or that its payout ratio is dangerously high. That is why the article emphasizes a quick “red‑flag” checklist: 1. Sustainable Payout Ratio – A healthy company should pay out no more than about 50‑60 % of its earnings.
2. Robust Free Cash Flow – The company must generate enough cash after capital expenditures to maintain dividends.
3. Positive Growth Track Record – Even a high‑yield stock can be a good buy if it shows consistent dividend growth over 5‑10 years.
4. Sector Resilience – Utilities and consumer staples tend to hold up better during economic swings.

With these caveats in mind, the article proceeds to rank the 10 highest‑yielding S&P 500 companies as of early March 2024.

The Top 10 High‑Yield S&P 500 Stocks (March 2024)

(Yields are current as of the publication date and are calculated using the most recent dividend payout and the latest share price.)

A Snapshot of Key Picks

• AT&T (T) – The article notes that AT&T’s 7.2 % yield is the highest in the list, but the company’s payout ratio sits at an eye‑watering 82 %, far above the healthy range. The firm has also announced a dividend cut, which has already impacted its stock price. The writer suggests this is a “tactical play” for investors with a high risk tolerance or those willing to accept the potential for a payout pause.

• Exxon (XOM) & Chevron (CVX) – Both energy majors are highlighted for their balanced mix of yield, cash flow, and dividend growth. The author points out that the ongoing recovery in global oil demand has helped lift their free‑cash‑flow numbers, making the 5‑plus percent yields sustainable for the next 3‑5 years.

• Altria (MO) & Philip Morris (PM) – Tobacco’s high dividend yields are often the talk of the town. The article mentions that both companies have very high payout ratios, but they also boast long histories of steady dividend hikes and a loyal shareholder base. The “red flag” for investors is the regulatory and litigation risks that could bite into cash flow.

• Pfizer (PFE) & Johnson & Johnson (JNJ) – Healthcare is the “sanctuary” sector for dividend investors. Both firms have modest yields but have delivered a solid record of dividend growth, and the author praises their robust pipelines and diversified product lines as reasons to add them for long‑term income.

• Coca‑Cola (KO) & PepsiCo (PEP) – These classic consumer staples are recognized for their moderate yields and the best of “steady dividend growth” in the list. They also come with a relatively low payout ratio and a history of weathering economic downturns.

How to Add These Stocks to Your Portfolio

The article provides a practical “next‑step” guide for readers:

1. Screen Your Existing Holdings – Use a portfolio tracker to see if any of the listed stocks already sit in your books. If so, consider whether a “top‑up” is necessary to boost yield.

2. Set a Target Yield – Determine the additional yield you want to generate. For instance, if you’re targeting a 4 % yield on a $100,000 portfolio, a $5,000 investment in a 5 % dividend stock will meet that goal.

3. Buy in Staggered Lots – Because high‑yield stocks can be volatile, the author recommends buying in increments of 10 % of your target amount. This reduces the risk of a large one‑off purchase at a high price.

4. Monitor Payout Ratios – Keep an eye on quarterly earnings releases. A sudden spike in payout ratio could be a warning sign.

5. Re‑invest Dividends – Use the platform’s dividend reinvestment plan (DRIP) to compound earnings automatically, which the writer says can dramatically boost returns over time.

Bottom Line

The MSN Money article does an effective job of marrying macro‑economic context with actionable, data‑driven stock picks. It reminds readers that “high yield” is a useful starting point for an income‑oriented strategy but that each company’s fundamentals—especially cash flow and payout sustainability—determine whether the yield is worth the risk.

By following the outlined steps, investors can add a diversified set of high‑yield S&P 500 stocks to their portfolios and potentially secure a steady stream of income that outpaces what many fixed‑income options can offer in the current environment. As always, individual risk tolerance and overall portfolio strategy should guide the final investment decisions.