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Many investors, such as Warren Buffett, praise defensive investing. As Buffett’s mentor Benjamin Graham recommended, investing with a margin of safety can be highly preferable in especially inflationary environments.

Defensive investors generally pick high dividend yielding stocks as alternatives to 10-year T-Bonds in order to seek protection against inflation. For such investors we prepared a list of 11 large-cap companies with high growth rates that pay fat dividend checks. The market data are sourced from Fidelity. All companies in this list have a market capitalization above $4 billion, five years EPS growth rate higher than 20%, and dividend yield of at least 4%. None of these stocks lost money to their investors during the past 12 months and they returned 37.71% (including dividends) in the same period, beating the government bonds by a large margin.

Eli Lilly Co. (LLY): Eli Lilly and Co. is a global pharmaceutical company. LLY has a 5.20% dividend yield and returned 19.97% during the past 12 months. LLY have a 5-year EPS growth of 20.14% with an EPS of $4.74 in 2010. Current P/E ratio of the stock is 8.56. Jim Simons' Renaissance Technologies had more than $200 million in LLY at the end of March 2011. (Check out Jim Simons’ top stock picks)

Canadian Imperial Bank of Commerce (CM): Canadian Imperial Bank of Commerce is one of the largest banks in Canada. CM recently traded at $79.79 and has a market cap of $31.69B. The stock has a 4.41% dividend yield and returned 34.15% during the past 12 months. CM has a 5-year EPS growth of 66.41% and a current P/E ratio of 12.83. Jim Simons and D.E. Shaw are among CM investors.

Exelon Corporation (EXC): Exelon Corporation is a U.S. energy company delivering electricity in the United States. EXC has a 4.84% dividend yield and returned 19.78% during the past 12 months. EXC had an EPS of $4.06 in 2010 with a EPS growth of 22.55% over the past five years.The stock has a market cap of $28.71B and P/E ratio of 11.59. Michael Messner's Seminole Capital and Bruce Kovner's Caxton Associates are among prominent EXC investors.

Dominion Resources Inc. (D): Dominion Resources Inc. is a U.S. company that provides electricity and natural gas to North Carolina and Virginia in the United States. D traded a $48.99 recently and returned 31.13% during the past 12 months. The stock has a 4.02% current dividend yield and a 27.33% EPS growth over the past five years. Current P/E ratio of the stock is 9.24. Steven Cohen holds the largest D position among the 300-plus funds we are tracking. (See Steven Cohen’s favorite stocks)

SeaDrill Limited (SDRL): SeaDrill Limited is a U.S. company operating in the oil and gas industry. SDRL has a 8.40% dividend yield and P/E Ratio of 9.43. The 5 year EPS growth of the company is 46.11%. The stock recently traded at $35.73 and more than doubled its returns during the past 12 months. SDRL has a market cap of $16.67B. Bain Capital had $50 Million in SDRL at the end of March 2011.

Williams Partners L.P. (WPZ): Williams Partners LP is an MLP being active in natural gas exploration, processing, storage and transportation services. Over the past five years, WPZ had an EPS growth of 40.26%. The stock has a 5.29% current dividend yield and returned 35.65% during the past 12 months. WPZ has a market cap of $15.74B and P/E ratio of 18.99. Jean-Marie Eveillard's First Eagle holds more than $85 million of WPZ. (See Jean-Marie Eveillard's other top holdings.) Jim Simons' Renaissance Technologies also has WPZ in its portfolio.

Annaly Capital Management Inc. (NLY): Annaly Capital Management Inc. is a portfolio management company specializing in mortgage-backed securities. NLY has a high dividend yield of 14.23% and returned 21.74% during the past 12 months. NLY have a 5-year EPS growth of 60.76% with an EPS of $2.33 in 2010. The stock has a market cap of $14.80B and P/E ratio of 7.91. James Melcher’s Balestra and Andy Redleaf’s Whitebox Advisors are among prominent NLY investors.

Shaw Communications Inc. (SJR): Shaw Communications Inc. is a telecommunications company that provides TV, internet and telephone services in the United States and Canada. Over the past five years, SJR had an EPS growth of 30.90%. The stock has a 4.37% dividend yield and returned 17.14% during the past 12 months. Current P/E ratio of SJR is 20.15. Ray Dalio has the largest SJR holding among the funds we are tracking.

El Paso Pipeline Partners L.P. (EPB): El Paso Pipeline Partners LP is an MLP that runs pipelines that distribute natural gas in the United States. EPB recently traded a $34.97 and returned 29.47% during the past 12 months. The stock has a 4.89% current dividend yield and a 20.18% EPS growth over the past five years. EPB has a market cap of $7.32B.

CMS Energy Corporation (CMS): CMS Energy Corp. is a U.S. company that generates and distributes electric power and natural gas in Detroit and Michigan. CMS has a 4.18% dividend yield and P/E Ratio of 13.06. Over the past five years, CMS had an EPS growth of 21.67%. The stock recently traded at $20.11 and gained 42.83% during the past 12 months. Phill Gross, D.E.Shaw, Clint Carlson and Cliff Asness are among prominent CMS investors.

Alliant Energy Corporation (LNT): Alliant Energy Corporation is a U.S. utilities company that provides electricity and natural gas services in the United States. LNT has 4.10% dividend yield and returned 38.02% during the past 12 months. LNT have a 5-year EPS growth of 40.41% with an EPS of $2.75 in 2010. Current P/E ratio of the stock is 14.38. Phill Gross’ Adage Capital holds the two largest LNT positions among 300-plus funds we are tracking.

Source: 11 Solid Dividend Stocks With Excellent Growth Rates