17 Mid-Cap Stocks for Dividend Lovers

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Includes: ARCC, CINF, EPB, HE, MCY, MMP, NRP, NS, PBI, RRD, SEP, SXL, TCP, TEG, TNH, VLY, VVC
by: Insider Monkey

In our recent study we have shown that the average return of high dividend yielding stocks was 13.04% between 1927 and 2009. The dividend stocks beat the overall market by an average of 1.36% per year during this period.

We prepared a list of 17 mid-cap companies that pay fat dividend checks. All companies on this list have a market capitalization between $2 and $10 billion, P/E ratio lower than 20 and dividend yield of at least 5%. These 17 stocks returned 16% (including dividends) during the past 12 months, beating government bonds by a large margin. (The market data is sourced from Finviz)

1. Sunoco Logistics Partners L.P. (NYSE:SXL): Sunoco Logistics Partners is transporting and storing refined products and crude oil. SXL recently traded at $85.77 and has a 5.6% dividend yield. SXL gained 18.57% during the past 12 months. The stock has a market cap of $2.8 billion and P/E ratio of 9.17. Chuck Royce’s Royce & Associates had $20 million invested in SXL at the end of March (Check out Royce’s favorite stocks).

2. El Paso Pipeline Partners, L.P. (NYSE:EPB): El Paso Pipeline Partners LP is an MLP that runs pipelines that distribute natural gas in the United States. EPB recently traded at $35.18 and has a 5.5% dividend yield. EPB gained 17.54% during the past 12 months. The stock has a market cap of $7.4 billion and P/E ratio of 18.23.

3. Terra Nitrogen Company, L.P. (NYSE:TNH): Terra Nitrogen Company, L.P. produces and distributes nitrogen fertilizer products. TNH recently traded at $154.01 and has a 6.5% dividend yield. TNH gained 103.66% during the past 12 months. The stock has a market cap of $2.8 billion and P/E ratio of 15.67.

4. R.R. Donnelley & Sons Company (NASDAQ:RRD): RR Donnelley provides print and related solutions. RRD recently traded at $18.81 and has a 5.5% dividend yield. RRD gained 18.08% during the past 12 months. The stock has a market cap of $3.9 billion and P/E ratio of 19.39.

5. Ares Capital Corporation (NASDAQ:ARCC): Ares Capital Corporation is a specialty finance company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing and leveraged buyout transactions of middle market companies. ARCC recently traded at $16.14 and has an 8.7% dividend yield. ARCC gained 27.09% during the past 12 months. The stock has a market cap of $3.3 billion and a P/E ratio of 4.01. Charles Clough’s Clough Capital Partners and John Griffin’s Blue Ridge Capital had ARES in their portfolios at the end of March (See Griffin’s top holdings here).

6. Magellan Midstream Partners LP (NYSE:MMP): Magellan Midstream Partners provides transportation, storage and distribution of refined petroleum products and crude oil in the United States. MMP recently traded at $59.02 and has a 5.3% dividend yield. MMP gained 27.67% during the past 12 months. The stock has a market cap of $6.7 billion and P/E ratio of 19.35. Capital Management had $66 million invested in MMP at the end of March. (Check out John Osterwies’ favorite stocks)

7. Spectra Energy Partners, LP (NYSE:SEP): Spectra Energy Partners provides transportation of natural gas. SEP recently traded at $29.74 and has a 6.3% dividend yield. SEP lost 11.36% during the past 12 months. The stock has a market cap of $2.9 billion and P/E ratio of 17.09.

8. NuStar Energy L.P. (NYSE:NS): NuStar Energy provides terminalling, storage and transportation of petroleum products worldwide. NS recently traded at $63.01 and has a 6.8% dividend yield. NS gained 10.47% during the past 12 months. The stock has a market cap of $4.1 billion and P/E ratio of 19.21.

9. TC Pipelines LP (TCLP): TC PipeLines provides transportation of natural gas in the United States and Canada. TCLP recently traded at $44.46 and has a 6.9% dividend yield. TCLP gained 11.6% during the past 12 months. The stock has a market cap of $2.1 billion and P/E ratio of 14.39.

10. Vectren Corporation (NYSE:VVC): Vectren Corporation provides energy delivery services. VVC recently traded at $26.41 and has a 5.2% dividend yield. VVC gained 12.29% during the past 12 months. The stock has a market cap of $2.2 billion and P/E ratio of 18.73.

11. Natural Resource Partners LP (NYSE:NRP): Natural Resource Partners provides ownership and management of coal properties in the United States. NRP recently traded at $31.29 and has a 6.9% dividend yield. NRP gained 30.59% during the past 12 months. The stock has a market cap of $3.3 billion and P/E ratio of 18.41.

12. Hawaiian Electric Industries Inc. (NYSE:HE): Hawaiian Electric Industries supplies power to 95% of Hawaii's population and provides banking services primarily in the state of Hawaii. HE recently traded at $23.4 and has a 5.3% dividend yield. HE gained 4.51% during the past 12 months. The stock has a market cap of $2.2 billion and P/E ratio of 19.18.

13. Integrys Energy Group, Inc. (NYSE:TEG): Integrys Energy Group is a regulated electric and natural gas utility company in the United States and Canada. TEG recently traded at $50.21 and has a 5.4% dividend yield. TEG gained 12% during the past 12 months. The stock has a market cap of $3.9 billion and P/E ratio of 13.43.

14. Pitney Bowes Inc. (NYSE:PBI): Pitney Bowes provides mail processing equipment and integrated mail solutions worldwide. PBI recently traded at $21.55 and has a 6.9% dividend yield. PBI lost 5.98% during the past 12 months. The stock has a market cap of $4.4 billion and P/E ratio of 13.99.

15. Valley National Bancorp (NYSE:VLY): Valley National Bancorp provides a range of commercial, retail, trust and investment services. VLY recently traded at $13.15 and has a 5.3% dividend yield. VLY gained 0.38% during the past 12 months. The stock has a market cap of $2.2 billion and P/E ratio of 15.84.

16. Cincinnati Financial Corp. (NASDAQ:CINF): Cincinnati Financial provides property casualty insurance services in the United States. CINF recently traded at $27.33 and has a 5.9% dividend yield. CINF gained 4.59% during the past 12 months. The stock has a market cap of $4.5 billion and P/E ratio of 11.99.

17. Mercury General Corporation (NYSE:MCY): Mercury General Corporation provides private passenger and commercial automobile insurance services in the United States. MCY recently traded at $37.14 and has a 6.5% dividend yield. MCY lost 8.63% during the past 12 months. The stock has a market cap of $2 billion and P/E ratio of 13.65. Jim Simons had a small position in MCY at the end of March.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.