Key takeaways:

• Although the US share market is typically known as the home for growth stocks, it also boasts a long list of companies trading with high dividend yields

• Investors should weigh up the overall performance of these stocks by taking into account dividends, share price depreciation over the years, and their future outlook

While the ASX may have established a reputation for dividends, and many Australian investors can probably cite some of the largest names trading on a high yield, there are also a number of companies in the US that pay big dividends.

Value traps or lucrative dividend opportunities? We'll let you decide as we take a look at five of the most well-known dividend paying stocks currently trading with a yield above 6%.

British American Tobacco (NYSE: BTI)

Founded in 1902, British American Tobacco is a holding company that owns a number of tobacco brands, manufacturing and distributing said products into global markets. Some of these brands include Lucky Strike, Dunhill, and Kent. The business operates throughout the United States, Asia-Pacific and Middle East (APME), Americas and Sub-Saharan Africa (AMSSA), as well as Europe and North Africa (ENA). 

The business has struggled over recent years as smoking rates decrease, while ESG concerns have also played a role as investors cite ethical reasons for avoiding investing in the industry. Nonetheless, the company has pivoted to include vape products in its portfolio, where it is now a leader in noncombustible tobacco, eyeing 50 million users by 2030 and profitability across this sector by 2024.

BTI is currently trading on a dividend yield around 8.3%, with market forecasts suggesting the business' dividend payout ratio will be just 55% across the coming year.

Verizon Communications (NYSE: VZ)

Verizon Communications is a telecom giant that offers communications, information, and entertainment products and services. Its product portfolio spans across consumer and business divisions, with both covering wire line communications services, while the latter extends to Internet of Things (IoT) services, corporate networking solutions, security and managed network services, and more. Based in New York, the company has grown to a value of approximately US$150 billion since its formation in 1983.

Earlier this year shares in Verizon were trading at their lowest levels in more than a decade, and much of the concerns driving that decrease have focused on the company declining cash flow. This has been fuelled by heavy capital spending requirements, not to mention slowing growth within the wireless industry amid heightened competition. 

Verizon has lifted its dividend annually since 2007, which is the longest streak in the US telecom sector. After paying quarterly amounts of $0.6525 across the last four quarters, VZ is currently trading on a trailing dividend yield of approximately 7.4%.

Enbridge (NYSE: ENB)

Canadian midstream energy company Enbridge operates a network of pipelines and storage facilities that distribute oil and gas between Canada oil sands region to the Great Lakes and Gulf of Mexico. It is also involved in the development of renewable energy projects, as well as the largest natural gas utility in North America. The company mainly generates revenue by charging users for distributing oil and gas via its infrastructure network.

The company is in the midst of growing its operations, with as much as CAD$17 billion worth of commercially secured capital projects currently under construction, and more to follow. These investments are being funded from the free cash flow the company generates after paying dividends to shareholders, which have steadily grown over the years. Enbridge expects key projects to be fully online by 2028, with cash flow forecast to increase thereafter.

The midstream energy business is trading on a trailing dividend yield of 7.3%, but the Canadian infrastructure operator boasts 28 consecutive years of dividend growth.

Walgreens Boots Alliance (NASDAQ: WBA)

The result of a merger between two major pharmacy operators in Walgreens and Alliance Boots, today Walgreens Boots Alliance is the largest retail health, pharmacy, and daily living destination across the US and Europe. 

In the US it not only operates pharmacy outlets, but also runs health and wellness services, speciality and home delivery pharmacy services, plus a healthcare segment that is designed to improve health outcomes and lower costs for payors and providers through owned and partnered assets. Within Europe the company runs pharmacy and beauty retail businesses, in addition to pharmaceutical wholesale and distribution operations. 

Walgreens Boots Alliance benefitted through the pandemic as demand for COVID vaccines, testing, and therapeutics soared, but the pharmacy operator has long foreshadowed growth concerns and competition has weighed on its share price for some time. The company has increased its annual dividend 47 years straight, with recent payments placing WBA on a trailing dividend yield of 6.5%. 

3M (NYSE: MMM)

Multinational conglomerate 3M is a household name known throughout the world for its range of industrial, safety, and consumer products. The company operates across a number of segments including but not limited to safety and industrial, transportation and electronics, healthcare, and consumer. 

3M range of well-known products span from adhesives and tapes, to roofing products, automotive aftermarket parts, aerospace goods, commercial solutions, medical and surgical supplies, infection prevention products, oral care solutions, stationery and office products, respirators, cleaning products, and more.

After a number of challenges like litigation and supply chain issues, and sluggish organic sales, shares in MMM are trading near a 10-year low, and 60% below their peak. However, with a dividend-paying history of 100 years behind it, and 65 consecutive years of dividend increases, 3M is known for being a dividend stock. Its 12-month trailing yield at the time of writing is 6.2%.