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Interested in finding high yield large caps to add to your portfolio for the new year?

We ran a screen on large-cap companies (market caps above $10 billion) for those yielding more than 3%. Large cap companies are considered more stable than their smaller counterparts.

We then screened for those stocks that are undervalued by levered free cash flow/enterprise value. This will provide a starting point for your analysis. This ratio gives us the money that the business can use to grow and pay dividends to shareholders.

Interactive Chart: Press Play to compare changes in market cap over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks are a bargain? Use this list as a starting point for your own analysis.

1. Applied Materials Inc. (NASDAQ:AMAT): Provides manufacturing equipment, services, and software to the semiconductor, flat panel display, solar photovoltaic (PV), and related industries worldwide. Market cap at $13.31B, most recent closing price at $11.11. Levered free cash flow at $1.48B vs. enterprise value at $13.28B (implies a LFCF/EV ratio at 11.14%). Dividend yield at 3.22%.

2. CA Technologies (NASDAQ:CA): Designs, develops, markets, delivers, licenses, and supports information technology (NYSE:IT) management software products that operate on a range of hardware platforms and operating systems. Market cap at $10.11B, most recent closing price at $22.01. Levered free cash flow at $1.09B vs. enterprise value at $9.24B (implies a LFCF/EV ratio at 11.8%). Dividend yield at 4.46%.

3. Dell Inc. (NASDAQ:DELL): Provides integrated technology solutions in the information technology industry worldwide. Market cap at $17.82B, most recent closing price at $10.26. Levered free cash flow at $2.61B vs. enterprise value at $15.89B (implies a LFCF/EV ratio at 16.43%). Dividend yield at 3%.

4. Eni SpA (NYSE:E): Engages in the exploration, production, transportation, transformation, and marketing of oil and natural gas. Market cap at $87.67B, most recent closing price at $48.25. Levered free cash flow at $23.97B vs. enterprise value at $111.80B (implies a LFCF/EV ratio at 21.44%). Dividend yield at 5.52%.

5. Hewlett-Packard Company (NYSE:HPQ): Offers various products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. Market cap at $27.94B, most recent closing price at $14.21. Levered free cash flow at $8.55B vs. enterprise value at $46.10B (implies a LFCF/EV ratio at 18.55%). Dividend yield at 3.6%.

6. Microsoft Corporation (NASDAQ:MSFT): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $228.09B, most recent closing price at $27.10. Levered free cash flow at $24.45B vs. enterprise value at $171.95B (implies a LFCF/EV ratio at 14.22%). Dividend yield at 3.34%.

7. Northrop Grumman Corporation (NYSE:NOC): Provides products, services, and solutions in aerospace, electronics, information systems, shipbuilding, and technical service sectors. Market cap at $16.48B, most recent closing price at $67.13. Levered free cash flow at $2.50B vs. enterprise value at $16.80B (implies a LFCF/EV ratio at 14.88%). Dividend yield at 3.2%.

8. Koninklijke Philips Electronics NV (NYSE:PHG): Engages in the healthcare, consumer lifestyle, and lighting product businesses worldwide. Market cap at $25.19B, most recent closing price at $26.32. Levered free cash flow at $2.94B vs. enterprise value at $26.21B (implies a LFCF/EV ratio at 11.22%). Dividend yield at 3.6%.

*FCF data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 8 Large Caps Yielding More Than 3% Undervalued By LFCF/EV