6 dividend stocks for investors who want to cut their exposure to the S&P 500

Investors looking to reduce their reliance on the S&P 500 may find dividend-paying companies in other developed markets worth a closer look. A screen for high dividend yields combined with low volatility in both share prices and earnings highlights names such as Novartis, Mitsubishi and Canadian Natural — all based outside the U.S.

The appeal of such a screen is twofold. A high yield suggests a meaningful income component, while low volatility in prices and earnings points to steadier operating profiles and potentially smaller drawdowns during market stress. For investors whose portfolios are heavily weighted toward large U.S. companies, these names offer geographic diversification without abandoning a dividend-focused approach.

What to watch: dividend yields can rise simply because a share price has fallen, so sustainability matters as much as the headline figure. Payout ratios, earnings trends and sector exposure — including sensitivity to commodity cycles — are worth monitoring. Investors should also weigh currency movements and regional economic conditions, since returns from non-U.S. holdings are affected by exchange rates as well as local market performance.