Staff Reporter

Are you on the hunt for substantial dividend income in unexpected places? Look no further than these three companies within the Nasdaq-100, which offer impressive yields, albeit with varying levels of risk and reward.

While the Nasdaq-100 index is often associated with high-growth tech stocks, it may not be the first place you think of for high-yield dividend opportunities. Notably, this index avoids financial companies, which typically contribute to income-generating portfolios.

However, 58 out of the 101 Nasdaq-100 stocks currently provide dividends, and some of these yields are particularly generous. Let’s take a closer look at the top three dividend yields as of Good Friday, 2025. Are these solid investments or struggling companies facing financial challenges?

No. 3: Paccar – 4.4% Yield

Kicking things off with an industrial twist, Paccar (PCAR) manufactures heavy-duty trucks under the Peterbilt, DAF, and Kenworth brands. This company has embraced innovation in a traditional sector, focusing on advancements like self-driving vehicles and engine efficiency. It’s a bit surprising to see such an established name within the tech-heavy Nasdaq-100.

Paccar makes a strong case for high-yield dividends. The company generates substantial free cash flow, which it uses to share wealth with shareholders. While Paccar initially emphasized stock buybacks, it has shifted to a more generous dividend growth strategy in recent years.

With a 4.4% yield closely aligned with its long-term averages, this payout is well-supported by free cash flow, making Paccar a solid income investment.

No. 2: Microchip Technology – 4.7% Yield

Can Microchip Technology (MCHP) measure up? Unfortunately, its high yield is largely a result of declining share prices rather than robust dividend increases. Last year, Microchip slowed its annual payout growth to a mere 0.2%, and its dwindling cash flows struggled to cover even that minimal increase.

The Arizona-based manufacturer of analog chips and microcontrollers is currently undergoing a turnaround. In early March, management held a special strategy call to discuss the company’s recovery from recent inflation-related challenges. Following a period of overstocking by clients in 2022, order flows have stalled in recent quarters.

Currently, the stock is trading 62% below its 52-week highs as investors brace for a slowdown in profits. However, the company may benefit from ongoing trade tensions, having shifted much of its manufacturing out of China.

While Microchip offers a tempting yield, it comes with risks. This isn’t the stable income option that Paccar represents; instead, it’s a chance to invest in a potentially recovering business.

No. 1: Kraft Heinz – 5.4% Yield

At the top of our list is a well-known name: Kraft Heinz (KHC), boasting a substantial 5.4% yield. If you’re seeking stability in dividends, Kraft Heinz might be your best bet.

Since spring 2020, the company has maintained its quarterly payout at $0.40 per share, showing resilience despite economic challenges. While cash flows dipped during the 2022 inflation crisis, Kraft Heinz had ample cash reserves to consider a revised dividend strategy. Instead, it opted for a stock buyback program, reflecting confidence in its future.

With the stock currently trading at a 24% discount from its yearly peak, the dividend yield is reaching multi-year highs. While not as consistently growing as Paccar’s dividends, Kraft Heinz offers a more stable alternative compared to the risky turnaround faced by Microchip.

In summary, these three Nasdaq-100 stocks present diverse options for dividend investors, each with its own set of risks and rewards.

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