Investors love blue-chip stocks that pay fat dividends, but high yield alone doesn’t guarantee a safe income stream.

Below are the top large-cap U.S. stocks with the highest yields, followed by why some may be value traps rather than treasure chests.

According to Benzinga Pro, the top high-yield large caps are:

• LyondellBasell Industries (NYSE:LYB): 9.88% yield.
• United Parcel Service, Inc. (NYSE:UPS): 7.75% yield.
• Pfizer, Inc. (NYSE:PFE): 6.92% yield.
• Altria Group, Inc. (NYSE:MO): 6.39% yield.
• Verizon Communications Inc. (NYSE:VZ): 6.25% yield.

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The yield (dividend ÷ price) looks big when the stock price drops sharply.

LyondellBasell’s (down 40% over the past year) double-digit dividend yield looks risky as earnings missed expectations in second-quarter 2025 financial results, free cash flow turned negative, and cyclical headwinds weigh on oxyfuels and European operations.

Yet management’s $1.1 billion cash improvement plan, asset sales, and disciplined capex cuts suggest the company is positioning itself to preserve dividends and benefit if demand and margins recover.

For Pfizer, which is down 18% over the past year, especially after COVID-vaccine/antiviral revenue dropped.

Its current yield seems attractive--but it’s driven in part by major declines in key income lines. Pfizer pays out nearly all its free cash flow. In one recent assessment by the Wealthy Retirement, payout was about 97% of free cash flow. That leaves little margin if earnings or cash flow falter.

Per market data, Altria also pays a large chunk of earnings, which works while business is stable--but any regulation, litigation, or decline in cigarette volume can threaten that.

Some of these companies face structural decline. Infrastructure, chemicals, and telecom firms may see margin pressure, energy cost issues, or regulatory risk.

Bottom Line

These blue-chips with the highest dividend yields can look like income gems -- particularly for those seeking current cash returns.

But many carry real risks: falling earnings, payout ratios near or above safe thresholds, sector declines, or dependence on cash flow that may not be sustainable.

They may not be traps per se, but several warrant caution.

Cash flow statements, the history of dividend growth, and whether a high yield stems from underlying weakness are common factors in evaluating these stocks.

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