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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. (NYSE: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. (NYSE: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. (NYSE: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. (NYSE: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 (NYSE: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. (NYSE: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. (NYSE: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 (NYSE: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. (NYSE: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. (NYSE: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 (NYSE: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. (NYSE: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. (NYSE: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. (NYSE: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. (NYSE: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 (NYSE: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