Should You Buy the 3 Highest-Paying Dividend Stocks in the Nasdaq-100?

So, you're looking for high-yield dividend stocks. The Nasdaq-100 market index may not be the first list that springs to mind since most of its components are high-growth tech stocks. The index explicitly avoids financial companies, thereby removing one popular income-generating category from the mix.

But 58 of the 101 Nasdaq-100 stocks offer a dividend payout today -- and some really generous yields are available here. Let's take a look at the top three Nasdaq-100 yields as of Good Friday, 2025. Are they solid income stocks or distressed giants in financial trouble?

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

No. 3: Paccar, 4.4% yield

The tech-heavy index gets started on an industrial foot here. Paccar (NASDAQ: PCAR) makes heavy-duty trucks under the Peterbilt, DAF, and Kenworth brands. It's a surprisingly innovative company in a traditional sector, pursuing research in areas such as self-driving vehicles, engine efficiency, and performance data analytics. But it's still a surprise to see this old-school name in the context of high-tech Nasdaq-100 stocks.

Paccar does make sense on a high-yield dividend list, though. The company generates copious amounts of free cash flow, and dividends are an effective way to share the wealth with stockholders. Paccar used to lean its cash-sharing policy more toward stock buybacks, but the policy has shifted to a generous dividend-growth strategy in recent years.

So, the 4.4% yield is close to Paccar's long-term averages, fully backed by free cash flows. This high-yield payout is the real deal, and Paccar is a robust income investment with a solid dividend policy.

No. 2: Microchip Technology, 4.7% yield

Can Microchip Technology (NASDAQ: MCHP) stand up to the same analysis?

Unfortunately, this high yield is more closely related to plunging share prices than long-term dividend boosts. Microchip slowed its annual payout increase down to a symbolic 0.2% last year. Even so, the company's plunging cash flows barely covered the cost of those barely boosted payouts.

The Arizona-based maker of analog chips and microcontrollers is in full turnaround mode. Management held a special strategy call in early March to highlight the company's recovery from an inflation-based downturn. Many clients overstuffed their warehouses with Microchip components in 2022, leading up to stalled order flows in recent quarters.

The stock is trading 62% below its 52-week highs as investors anticipate a slowdown in Microchip's cash profits. However, this company might actually benefit from the tariff drama, as it has moved most of its manufacturing out of China. It maintains a smaller presence in the Middle Kingdom, but chips made in China will be shipped to customers in China, Europe, and Asia.

So, Microchip has an effective tariff mitigation strategy ready to go and may gain market share as the Chinese-American trade tension intensifies. Turnarounds are never easy, but you can lock in fantastic dividend yields and starting prices by grabbing a few shares on the cheap.

All that said, Microchip's yield is about triple its long-term average, and you should know that you're taking a chance on its recovery process. This isn't a rock-solid income play like Paccar. Instead, Microchip stock lets you take a chance on a promising but risky business turnaround attempt.

No. 1: Kraft Heinz, 5.4% yield

The top of the heap is a familiar name, but another nontraditional Nasdaq-100 idea. Food giant Kraft Heinz (NASDAQ: KHC) currently offers a massive 5.4% yield.

If you want a stable dividend, Kraft Heinz could be at the top of your list. The company has neither cut nor increased its quarterly payouts since the spring of 2020. The quarterly check has been worth $0.40 per share throughout the pandemic era and its aftermath.

That's not for a lack of cash flows. Kraft Heinz absorbed a downtick in its cash generation during the 2022 inflation crisis, but it always had more than enough cash on hand to consider a refreshed dividend-boost strategy. The company chose another path, kicking off a generous stock buyback program instead.

That move makes sense in light of a stalled stock chart trading sideways since 2021. Buying back shares at a low price can be an effective use of spare capital, and it also serves as a vote of confidence in the company's future prospects. Kraft Heinz stock is currently available at a 24% discount to its yearly peak, and the dividend yield is soaring to multiyear highs.

This dividend strategy isn't quite as promising as Paccar's long streak of annual payout boosts, but Kraft Heinz is also far from the risky turnaround effort you saw in Microchip Technology. This could be the best of both worlds for some investors, pairing a thoughtful cash management policy with the potential for a moderate stock price bounce.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool recommends Kraft Heinz. The Motley Fool has a disclosure policy.