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Domestic equity companies with dividends competitive with junk bond interest rates (8% or higher) were found among many sectors and types of securities. Two sectors with many top dividend stocks are found among oil and gas production/exploration/gas utilities and the telecom/wireless communications sector.

Below is a list of top dividend energy stocks:

Extreme Dividend Energy Companies: Oil and Gas Production, Exploration, Utilities

Ticker

Dividend Yield

Return on Equity

Country

Performance (Year to Date)

Beta

P/E (ttm)

P/B

WHX

16.65%

60.58%

USA

-14.77%

0.79

6.19

4.31

VOC

15.56%

N/A

USA

9.13%

N/A

14.17

2.6

NKA

11.15%

6.77%

USA

-33.44%

N/A

6.9

0.48

NRGY

10.05%

-0.32%

USA

-24.24%

0.59

34.4

2.87

CLMT

9.65%

7.18%

USA

2.45%

0.33

26.64

2.28

ENP

9.45%

-1.39%

USA

-5.69%

0.84

N/A

2.94

BBEP

9.10%

-8.90%

USA

-1.75%

0.92

N/A

0.89

FGP

8.93%

-19.24%

USA

-9.24%

0.51

N/A

9.95

MMLP

8.53%

2152%

USA

-3.71%

0.39

30.57

2.36

BWP

8.49%

6.68%

USA

-16.05%

0.2

21.89

1.49

BPT

8.48%

18950%

USA

-6.24%

0.63

12.5

5576

EXLP

8.46%

-8.01%

USA

-10.02%

0.67

N/A

1.91

YPF

8.14%

29.25%

Argentina

-19.24%

0.84

10.65

3.09

Alternatively, high dividend yields are found among telecom and wireless communications stocks:

Extreme Dividends in Telecom and Wireless Communications

Ticker

Div Yield

ROE

Country

Performance (Year to Date)

Beta

P/E (ttm)

P/B

PTNR

17.9%

181.9%

Israel

-42.5%

0.82

5.8

10.56

CEL

15.7%

338.8%

Israel

-28.2%

0.75

6.6

26.76

VIV

11.5%

21.6%

Brazil

39.6%

0.56

10.7

2.42

PT

11.1%

5.2%

Portugal

-13.6%

0.7

36.7

1.19

FTE

10.4%

10.8%

France

-5.0%

0.81

11.4

1.24

FTR

10.0%

6.1%

USA

-19.5%

0.75

46.8

1.51

TEF

9.6%

48.1%

Spain

-6.4%

1.01

6.7

3.17

TI.A

9.4%

1.9%

Italy

5.2%

0.96

N/A

0.56

NOK

8.9%

9.7%

Finland

-33.7%

1.51

13.1

1.35

CTL

8.2%

4.9%

USA

-20.8%

0.74

15.0

0.98

CNSL

8.2%

48.7%

USA

4.5%

1.04

18.2

9.3

Would either sector be appropriate for a risk adverse fixed-income investor? Yes. Which is better? The top dividend energy stocks listed here have dropped slightly less year-to-date: -10.2% versus the -10.9% drop in the highest dividend communication companies. In addition, these energy stocks are more resistant to market swings, with an average beta of 0.64, lower than the 0.73 average beta of these high dividend communication stocks. On the other hand, the average dividend yield of these communication stocks is higher, 11.7% versus the 10.2% dividend yield of the listed energy stocks. It seems that high dividend stocks from both sector lists are worthy of consideration by fixed-income investors.

This article is a good jumping off point for further research. Investors should consider whether each company will be able to maintain dividend payouts. Moreover, investors should consider their current portfolios. Investments in U.S. tax-advantaged retirement accounts should favor companies domiciled in the United States since the other nations listed here will withhold a portion of dividends, and these withholdings will not be deducted from your taxes. Alternatively, investors who are investing in a fully-taxable portfolio should be more likely to embrace foreign, dividend-paying companies since their withholding will be deducted from your tax bill, essentially giving the withheld dividends back. Consult your tax advisor and judge whether you believe you will have taxes to offset in the future.

Source: 8% Or Higher Dividends: Energy Vs. Telecom And Wireless