The search for yield is more relevant now than ever, with stocks due for a correction anytime now and speculation about the end of the bond bull market, a good place to look for opportunity is in the large cap high dividend yield space. The methodology we used when selecting these companies consisted of screening for large-cap companies, defined as having a capitalization of $10 billion of more. We limited our search to stocks that are available on American exchanges, and have a dividend yield of 7% or more. Our final step was to remove any company whose stock price had dropped by more than 25% in the past 12 months.
The companies we ended up with come from different industries and geographical locations, from financial services to energy, from America to Europe and Asia. The one thing they do have in common are very juicy dividends.
- Banco Santander S.A. (SAN)
- Yield - 9%
- Market cap - $95.92 Billion
Banco Santander is a Spanish bank operating in the sectors of retail banking, global wholesale banking, asset management and insurance. The company operates throughout Europe and parts of Latin America. This company has been in business since 1857.
- Seadrill Ltd. (SDRL)
- Yield - 7.8%
- Market cap - $21.37 Billion
Seadrill provides offshore drilling services, with a specific focus on harsh and benign environments. Its primary operation is the ownership and operation of oil rigs. The company offers drilling and maintenance services to offshore explorations and production wells. The company has significant operations in Southeast Asia and West Africa. Seadrill was founded in 2005, with headquarters in Hamilton, Bermuda.
- Annaly Capital Management, Inc. (NLY)
- Yield 11.9%
- Market cap - $11.54 Billion
Annaly Capital is structured as a real estate investment trust. It provides asset management services internationally to both institutions and individuals. Annaly manages a portfolio of real estate investments, such as: mortgage certificates, collateralized mortgage obligations, callable debentures and other financial instruments either backed by pools of mortgage loans or guaranteed by Freddie Mac, Fannie Mae and Ginnie Mae. The company was founded in 1996, with headquarters in New York, NY. Although this company contains more risks than the others on this list, it also has the highest dividend yield.
- Rwe Ag Ord Sp Adr (OTCPK:RWEOY)
- Yield 7%
- Market cap - $22.38 Billion
Rwe Ag generates, transmits, and trades electricity and natural gas. It is involved in all related operations from energy production, to the construction and operation of power plants, right up to the transmission and sales. It has operations in Germany, the Netherlands, Belgium, the United Kingdom, and Eastern Europe. Founded in 1898, with headquarters in Essen, Germany.
- Eon Ag Ads (OTCQX:EONGY)
- Yield 7.9%
- Market cap - $34.49 Billion
Eon Ag is a German energy solutions provider. Its operations focus on energy generation, renewable technologies, optimization, trading, exploration and production. Its energy generating operations are focused in Europe. The trading division buys and sells diversified types of energy, whereas their exploration and production divisions develop gas resources and acquires stakes in oil fields. Founded in 2000, its headquarters is located in Düsseldorf, Germany.