While the average dividend yield on the global market hovers near historical lows, a select group of large-cap companies stands out with payouts above 6 %, offering income that rivals many bonds and income strategies. These aren’t speculative “yield traps” — they are established players with robust cash flow, long histories of dividend policy and the balance sheet strength to sustain payouts. In this article, we break down the key drivers behind these outsized yields and what investors should watch for sustainability in the years ahead.

A dividend yield above 6% is tempting at first glance, but the market doesn't usually reward it for free. Very often, it is not a matter of some kind of company generosity, but a combination of two things: a high dividend and a fall in the share price (i.e. a rise in the yield optically).

That is why it is crucial with high dividends not only to ask how much the company pays out, but more importantly what it pays out and how long it can sustain it. This…