Income investors looking for large companies paying high yields don't have to look far. Twenty of the stocks in the Dow Jones Industrial Average pay yields of 2% or more, and five of them have yields of 4% and higher.
AT&T Inc. (T), which is at the top of the list, has a yield of 6.4%, and carries a forward price to earnings ratio of 11. The company pays out over $9.9 billion in annual dividends which is extremely well covered by the company's operating cash flow of over $34 billion.
Verizon Communications Inc. (VZ) yields 6.2%, and has a forward P/E ratio of 12. Verizon's dividend payouts of $5.6 billion are also very well covered by the $31.5 billion in operating cash flow.
E.I. du Pont de Nemours (DD) pays a yield of 4.3% and has a forward P/E of 14.5.
Pfizer, Inc. (PFE) has a yield of 4.2% with a forward P/E of 7.6.
Merck & Company, Inc. (MRK) yields 4% and has a forward P/E of 10.
Disclosure: Author owns T and PFE.