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The average dividend yield in the S&P 500 Index remains low at 1.1%. As a result, income investors largely have to settle for less dividend income when buying stocks.
However, there are still quality high dividend stocks with current yields well above the market average. Investors do not have to sacrifice income when it comes to quality dividend payers with competitive advantages and long-term growth potential.
And, investors can look for cheap high dividend stocks that combine a high dividend yield, with a low valuation multiple.
Amcor plc (AMCR)
Amcor plc is one of the world’s most prominent designers and manufacturers of packaging for food, pharmaceutical, medical, and other consumer products.
The company emphasizes making responsible packaging that is lightweight, recyclable, and reusable.
Amcor reported its second quarter results for Fiscal Year 2026 on February 3rd, 2026. The company reported strong fiscal Q2 2026 results, with net sales of $5.45 billion, up 68% year-over-year, largely driven by the Berry Global acquisition.
Adjusted profitability improved significantly, with adjusted EBITDA rising 83% to $826 million and adjusted EBIT increasing 66% to $603 million, while adjusted EPS grew 7% to $0.86.
GAAP net income was $177 million ($0.38 per share) due to acquisition-related costs, and free cash flow totaled $289 million after approximately $69 million in integration and restructuring expenses.
For the first half of fiscal 2026, net sales reached $11.19 billion, up 70% year-over-year, reflecting $4.5 billion of acquired sales from the Berry combination.
Adjusted EBITDA increased 89% to $1.74 billion, while adjusted EBIT rose 77% to $1.29 billion. Adjusted net income totaled $848 million, with adjusted EPS of $1.83, up 14%, highlighting strong operational performance and early synergy realization from the acquisition.
Best Buy Co. (BBY)
Best Buy Co. Inc. is one of the largest consumer electronics retailers in North America with operations in the U.S. and Canada. Best Buy sells consumer electronics, personal computers, software, mobile devices, and appliances, and provides services.
At the end of Q3 FY2026, Best Buy operated 886 Best Buy stores and 18 Best Buy Outlet Centers in the U.S., 20 Pacific Sales Stores, 2 Yardbird Stores, 129 Best Buy stores in Canada, and 28 Best Buy Mobile Stand-Alone Stores in Canada.
Best Buy reported Q4 FY2026 results on March 3rd, 2026. Enterprise revenue decreased to $13,814M from $13,948M, and non-GAAP diluted earnings per share increased to $2.61 from $2.58 on a year-over-year basis. GAAP diluted EPS climbed to $2.56 from $0.54. Comparable enterprise revenue decreased 0.8%.
Domestic revenue fell 1.1% due to soft home theater and appliance sales. Sales were lower for 3 out of 5 categories: Computing and Mobile Phones (+5.4%), Consumer Electronics (-7.3%), Appliances (-10.5%), Entertainment (-0.3%), and Services (+4.6%).
Comparable domestic online sales decreased -2.3% compared to the prior year. Domestic online sales comprised about 39.0% of total domestic revenue.
For fiscal 2027 Best Buy expects revenue of $41.2 billion to $42.1 billion and adjusted EPS of $6.45 at the midpoint of guidance.
BBY has increased its dividend for 23 consecutive years and the stock yields 6.2%.
Franklin Resources (BEN)
Franklin Resources is a global asset manager that offers investment management (which makes up the bulk of fees the company collects) and related services to its customers, including sales, distribution, and shareholder servicing.
As of December 31st, 2025, assets under management (AUM) totaled $1.684 trillion.
On December 17th, 2025, Franklin Resources announced a $0.33 quarterly dividend, marking a 3% year-over-year increase and the company’s 46th consecutive year of increasing its payment.
The company qualifies as a Dividend Aristocrat due to its history of annual dividend increases.
In the most recently reported quarter, total assets under management equaled $1.684 trillion, up $23 billion sequentially, as a result of $28 billion of long-term net inflows, and $6.1 billion from the Apera Asset Management acquisition. AUM growth was partly offset by $10.1 billion of net market change, distributions, and other, plus $1.2 billion of cash management net outflows.
For the quarter, operating revenue totaled $2.327 billion, up 3% year-over-year. On an adjusted basis, net income equaled $378 million or $0.70 per share, up 19% from $0.59 in Q1 2025.
During Q1, Franklin repurchased 1.8 million shares of stock for $42 million. Franklin ended the quarter with $6.2 billion in cash and investments.
For 2026, we expect BEN to generate EPS of $2.62.
Disclosure: No positions in any stocks mentioned
