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In a recent article we stated that since the beginning of this year, the average return of the 20 high dividend-yielding S&P500 stocks was 6.09%, beating the SPY by 2.33%. The second group of 20 stocks with lower dividend yields returned 3.29% on average, underperforming both the stocks in the first group and the SPY.

We compiled a list of 16 large cap companies with tremendous market capitalization that also regularly pay fat dividend checks. The market data are sourced from Finviz. All companies in this list have a market capitalization above $10 billion and a dividend yield of at least 5.0%. These 16 stocks returned 16.5% (including dividends) during the past 12 months, beating government bonds by a large margin.

1. Annaly Capital Management, Inc. (NLY) is a real estate investment trust. NLY recently traded at $16.78 and has a 15.5% dividend yield. NLY gained 11.4% during the past 12 months. The stock has a market cap of $10.4 billion and P/E ratio of 7.23. Charles Clough’s Clough Capital Partners had $29 million invested in NLY shares.

2. CenturyLink, Inc. (CTL) is an integrated communications company. CTL recently traded at $37.11 and has a 7.8% dividend yield. CTL gained 11.8% during the past 12 months. The stock has a market cap of $22.3 billion and P/E ratio of 12.45.

3. Energy Transfer Partners L.P. (ETP) provides natural gas midstream, and intrastate transportation and storage services in the United States. ETP recently traded at $46.92 and has a 7.6% dividend yield. ETP lost 0.7% during the past 12 months. The stock has a market cap of $10.2 billion and P/E ratio of 40.8. Jim Simons holds the largest ETP position among the funds we are tracking. (Check out Simons’ top stock picks.)

4. Southern Copper Corp. (SCCO) provides mining, smelting, and refining services of mineral properties in South America. SCCO recently traded at $34.16 and has a 6.6% dividend yield. SCCO gained 14.3% during the past 12 months. The stock has a market cap of $30.2 billion and P/E ratio of 17.61.

5. Kinder Morgan Energy Partners LP (KMP) operates energy transportation and storage assets. KMP recently traded at $70.49 and has a 6.5% dividend yield. KMP gained 9.7% during the past 12 months. The stock has a market cap of $23.2 billion and P/E ratio of 34.05. Michael Messner's Seminole Capital holds the largest KMP position among the 300+ funds we are tracking.

6. Reynolds American Inc. (RAI) provides cigarette and other tobacco products in the United States. RAI recently traded at $35.2 and has a 6% dividend yield. RAI gained 29.3% during the past 12 months. The stock has a market cap of $20.5 billion and P/E ratio of 15.3.

7. AT&T, Inc. (T) provides telecommunication services worldwide. T recently traded at $29.26 and has a 5.9% dividend yield. T gained 19.4% during the past 12 months. The stock has a market cap of $173.3 billion and P/E ratio of 8.87.

8. Enterprise Products Partners LP (EPD) provides midstream energy services in North America. EPD recently traded at $41.59 and has a 5.8% dividend yield. EPD gained 16.3% during the past 12 months. The stock has a market cap of $35.3 billion and P/E ratio of 31.51. In the past 5 years, EPD increased its dividend payments by 6.34% annually. John Osterweis holds nearly $70M of EPD.

9. Altria Group Inc. (MO) provides cigarettes, smokeless products, and wine worldwide. MO recently traded at $26.3 and has a 5.8% dividend yield. MO gained 26.1% during the past 12 months. The stock has a market cap of $55.1 billion and P/E ratio of 15.94.

10. Verizon Communications Inc. (VZ) provides communication services. VZ recently traded at $35.29 and has a 5.5% dividend yield. VZ gained 28.1% during the past 12 months. The stock has a market cap of $99.8 billion and P/E ratio of 15.75.

11. Duke Energy Corporation (DUK) is an energy company operating in America. DUK recently traded at $18.6 and has a 5.4% dividend yield. DUK gained 14.7% during the past 12 months. The stock has a market cap of $24.8 billion and P/E ratio of 17.88.

12. Progress Energy Inc. (PGN) is a utility holding company operating in the United States. PGN recently traded at $46.74 and has a 5.3% dividend yield. PGN gained 17.2% during the past 12 months. The stock has a market cap of $13.8 billion and P/E ratio of 16.06.

13. HCP, Inc. (HCP) is an independent hybrid real estate investment trust. The fund invests in real estate markets of the United States. HCP recently traded at $36.73 and has a 5.2% dividend yield. HCP gained 9% during the past 12 months. The stock has a market cap of $14.9 billion and P/E ratio of 42.71.

14. Williams Partners L.P. (WPZ) is an integrated natural gas company in the United States. WPZ recently traded at $55.8 and has a 5.1% dividend yield. WPZ gained 27.5% during the past 12 months. The stock has a market cap of $16.2 billion and P/E ratio of 19.51. Jean-Marie Eveillard's First Eagle holds more than $85 Million of WPZ. Simons' Renaissance Technologies also have WPZ in its portfolio.

15. Eli Lilly & Co. (LLY) provides pharmaceutical products worldwide. LLY recently traded at $38.3 and has a 5.1% dividend yield. LLY gained 13.5% during the past 12 months. The stock has a market cap of $44.3 billion and P/E ratio of 8.99.

16. PPL Corporation (PPL) is an energy and utility holding company. PPL recently traded at $27.9 and has a 5% dividend yield. PPL gained 7.6% during the past 12 months. The stock has a market cap of $16.1 billion and P/E ratio of 11.62.

Disclosure: I am long T, CTL.

Source: 16 High Dividend Large Cap Stocks for Dividend Lovers