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We prefer high dividend stocks over long-term treasuries. The 10-year Treasury bond has an extremely low yield to maturity at this moment. The bonds are performing spectacularly in this down market, but over the next 10 years they aren’t good investments. An investor who bets $100 on a high dividend stock that yields more than 5% will perform better than the 10-year treasury holders if the high dividend stock doesn’t go down more than 25% over the next 10 years. We don’t think that’s very likely for a diversified portfolio of high dividend yielding stocks. That’s why we like high dividend stocks.

We compiled a list of 30 large scale companies with tremendous market capitalization that also pay fat dividend checks regularly. All companies in this list have a market capitalization above $30 billion, P/E ratio of below 12 and dividend yield of at least 2.9%.

Stock

Market Cap

P/E

Dividend Yield

Return (52- week)

France Telecom (FTE)

46.5

10.7

10.8%

-7.0%

AstraZeneca PLC (NYSE:AZN)

55.8

7.2

6.6%

-15.4%

National Grid plc (NYSE:NGG)

32.3

8.9

6.4%

16.5%

AT&T, Inc. (NYSE:T)

165.1

8.5

6.2%

11.1%

Vodafone Group plc (NASDAQ:VOD)

132.2

10.2

5.8%

11.6%

Eli Lilly & Co. (NYSE:LLY)

39.9

8.1

5.7%

-2.2%

Statoil ASA (NYSE:STO)

65.3

5.4

5.6%

7.0%

Royal Dutch Shell plc (RDS-B)

191.8

6.9

5.5%

19.3%

Total SA (NYSE:TOT)

105.7

6.1

5.4%

-6.2%

Bank of Montreal (NYSE:BMO)

32.4

11.2

5.2%

3.5%

Credit Suisse Group (NYSE:CS)

34.1

9.0

5.1%

-33.6%

BP plc (NYSE:BP)

120.9

6.1

4.4%

1.5%

PetroChina Co. Ltd. (NYSE:PTR)

218.9

9.8

4.3%

11.9%

HSBC Holdings plc (HBC)

148.2

9.8

4.3%

-17.4%

China Mobile Limited (NYSE:CHL)

182.0

9.9

4.3%

-9.5%

ConocoPhillips (NYSE:COP)

86.1

7.9

4.2%

17.1%

Intel Corporation (NASDAQ:INTC)

105.7

9.1

4.2%

6.1%

The Bank Of Nova Scotia (NYSE:BNS)

56.5

11.6

4.1%

13.1%

General Electric Co. (NYSE:GE)

160.0

11.7

4.0%

-0.9%

China Petroleum & Chem (NYSE:SNP)

72.1

6.5

3.8%

9.6%

Siemens AG (SI)

90.9

11.7

3.7%

5.7%

Arcelor Mittal (NYSE:MT)

33.3

10.5

3.5%

-29.1%

Chevron Corp. (NYSE:CVX)

181.4

7.9

3.4%

21.4%

Barclays PLC (NYSE:BCS)

32.3

5.7

3.3%

-44.5%

Medtronic, Inc. (NYSE:MDT)

32.3

10.6

3.2%

-14.1%

CNOOC Ltd. (NYSE:CEO)

81.6

9.7

3.1%

13.7%

BHP Billiton plc (NYSE:BBL)

159.0

9.8

3.1%

2.0%

Wal-Mart Stores Inc. (NYSE:WMT)

168.1

11.3

3.0%

-3.3%

The Coca-Cola Company (NYSE:KO)

146.9

12.0

2.9%

17.5%

JPMorgan Chase & Co. (NYSE:JPM)

136.6

7.3

2.9%

-7.7%

Market data is obtained from Finviz.

AT&T is one of the leading multinational telecom companies. AT&T, Inc. recently traded at $28.16 and has a 6.2% dividend yield. T gained 11.12% during the past 12 months. The stock has a market cap of $165.1 billion and P/E ratio of 8.45. Billionaire investor George Soros had $49 million invested in T shares. During the fourth quarter of 2010, Bruce Berkowitz's $14 billion Fairholme Fund bought $276 million T shares (see Berkowitz’s top stock picks here).

Vodafone provides mobile communication services worldwide. Vodafone has 370.9 million mobile customers at the end of fiscal 2011, up 14.5% from the end of prior year. Vodafone Group recently traded at $26.25 and has a 5.8% dividend yield. VOD gained 11.6% during the past 12 months. The stock has a market cap of $132.2 billion and P/E ratio of 10.17. In the 2011 financial year (the year ended 31 March 2011), Vodafone reported revenues of £45.9 billion (3.2% growth), adjusted operating profit of £11.8 billion (3.1% growth) and free cash flow of £7.0 billion.

France Telecom is one of the leading multinational telecom companies. France Telecom recently traded at $17.9 and has a 10.8% dividend yield. FTE lost 6.99% during the past 12 months. The stock has a market cap of $46.5 billion and P/E ratio of 10.65. Jim Simons’ Renaissance Technologies had $4 million invested in FTE shares at the end of March. (Check out Simons’ top holdings.)

AstraZeneca is a leading healthcare company operating worldwide. AstraZeneca recently traded at $43.31 and has a 6.6% dividend yield. AZN lost 15.36% during the past 12 months. The stock has a market cap of $55.8 billion and P/E ratio of 7.15.

National Grid provides electricity and gas infrastructure networks in the United Kingdom and United States. National Grid plc recently traded at $47 and has a 6.4% dividend yield. NGG gained 16.5% during the past 12 months. The stock has a market cap of $32.3 billion and P/E ratio of 8.91.

Eli Lilly and Company provides pharmaceutical products worldwide. Eli Lilly & Co. recently traded at $34.48 and has a 5.7% dividend yield. LLY lost 2.18% during the past 12 months. The stock has a market cap of $39.9 billion and P/E ratio of 8.1.

Statoil ASA provides petroleum and petroleum-derived products. Statoil ASA recently traded at $21.34 and has a 5.6% dividend yield. STO gained 6.95% during the past 12 months. The stock has a market cap of $65.3 billion and P/E ratio of 5.38.

Royal Dutch Shell is one of the leading oil and gas companies operating worldwide. Royal Dutch Shell recently traded at $63.36 and has a 5.5% dividend yield. RDS.B gained 19.31% during the past 12 months. The stock has a market cap of $191.8 billion and P/E ratio of 6.85.

TOTAL is an integrated oil and gas company operating worldwide. Total SA recently traded at $45.77 and has a 5.4% dividend yield. TOT lost 6.24% during the past 12 months. The stock has a market cap of $105.7 billion and P/E ratio of 6.12.

Bank of Montreal provides various retail banking, wealth management, and investment banking services worldwide. Bank of Montreal recently traded at $58.68 and has a 5.2% dividend yield. BMO gained 3.45% during the past 12 months. The stock has a market cap of $32.4 billion and P/E ratio of 11.22.

The Coca-Cola Company recently traded at $65.69 and has a 2.9% dividend yield. KO gained 17.47% during the past 12 months. The stock has a market cap of $146.9 billion and P/E ratio of 11.96. Warren Buffett's stake in the company is 8.7%. Buffett made more than $7 billion with his Coca-Cola investment. On July 19, 2011, Coca-Cola reported second quarter financial results. Second quarter reported EPS was $1.20, up 18%, with comparable EPS at $1.17. On July 21, The Coca-Cola Company announced a regular quarterly dividend of 47 cents per common share.

We like dividend stocks because they perform better than the rest of the market on the average. They also beat the market by a large margin in bear markets.

Source: 30 Dividend Stocks for Strong Income