With 30-year Treasury bonds yielding just 3 percent despite widespread predictions of a Federal Reserve rate hike, high-dividend stocks continue to present an appetizing option for many investors.
Of course, not every name falls into that bucket. Eighty-three of the megacap stocks in the S&P 500 pay no dividend whatsoever. But at the other end of that spectrum sit three stocks: Frontier Communications, Kinder Morgan and Oneok.
With dividend yields of more than 8 percent each, those three names are the S&P's highest-yielding stocks.
To a certain extent, that is a function of those stocks' steep drops. Frontier Communications shares are down 30 percent in the past year, Kinder Morgan is down 41 percent and Oneok is down 47 percent. As a share price falls, its dividend yield will naturally rise.
This is where things get a bit tricky. So long as the dividend payout remains stable or rises, these super-dividend names could present great values for their yield alone, no matter what the shares do. But if the company loses its ability or will to pay out the high dividend, investors could be stuck holding a broken stock for all the wrong reasons.
Among the three names, analysts appear the most confident about Frontier's dividend, the single highest in the S&P.
The dividend is "an attractive aspect of the story, and I think it is a comfortable payout ratio, so I would say that it is a fairly secure dividend," RBC Capital Markets analyst Jonathan Atkin told CNBC.
Frontier runs a somewhat interesting business, providing communications services in 28 states, largely in rural areas. In 2015, losses of both residential and business customers have created investor angst. But the bottom line for most investors remains the yield.
"FTR's 42 cent annual dividend is safe and we view the stock as attractive at its current 8.7 percent yield, the highest amongst the rural carriers we cover," D.A. Davidson analyst James Moorman wrote in a recent note in which he maintains his "buy" rating.