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By Darnell Brown

Crafting the world's best dividend portfolio is no easy task. This article will examine five large-cap dividend paying stocks to see if one belongs in your stock portfolio. Each stock on this list has a market cap of over $20 billion, possesses a durable competitive advantage that can be used to protect dividend payment and is now trading at a discount based on a number of valuation multiples. As always, use the list below as a starting point for your own research.

Vodafone Group PLC (NASDAQ:VOD): Vodafone has a market cap of $133.84 billion with a price to earnings ratio of 10.81. The stock has traded in a 52-week range of between $24.59 and $29.75. The current stock price is around $26.00. In 2010, the company had revenues of $67.5 billion, compared to revenues of $51 billion in 2009. Year 2010 net income was $13.1 billion compared to net income of $14.4 billion in 2009.

One of Vodafone’s biggest competitors is Deutsche Telekom (OTCQX:DTEGY). Deutsche Telekom is trading at around $72.00 with a market cap of $50.50 billion and a negative price to earnings ratio.

Vodafone is based in the United Kingdom, and over the last three years, it has had relatively steady net income. The company has been paying bi-annual dividends for decades, and last paid a dividend on November 17, 2010. The current dividend yield is 7.6%. On July 28th, Verizon Wireless announced that it would pay a $4.5 billion dividend to Vodafone, which owns 45% of the company. On September 12th Verizon announced that it would no longer be paying the dividend. This change of directions is bad news for Vodafone investors. However, Vodafone, which has the highest revenues of any mobile communications company, will still be profitable, and with $10.99 billion of cash on its balance sheet it should have no problem maintaining its dividend. Investors that like steady earnings and high yield dividends should like Vodafone. I rate Vodafone Group PLC as a buy.

Exxon Mobil Corporation (NYSE:XOM): Exxon has a market cap of $355.42 billion with a price to earnings ratio of 9.63. The stock has traded in a 52-week range of between $60.36 and $88.23. The current stock price is around $73.00. On July 26th, the company reported second quarter revenues of $125 billion, compared to revenues of $92.5 billion in the second quarter of 2010. Second quarter net income was $10.7 billion compared to net income of $7.56 billion in the second quarter of 2010. Net income for 2010 was $30.5 billion compared to net income of $19.3 billion in 2009.

Exxon’s biggest competitor is BP PLC (NYSE:BP). BP PLC is currently trading around $38.00 with a market cap of $121.31 billion and a price to earnings ratio of 6.12. BP PLC pays a dividend which yields 4.6%, versus Exxon whose dividend yield is 2.6%.

Exxon is the largest energy company in the world. The company has been highly profitable for many years and increased net income by 58% in the last year. The stock price has also done well and is up by 19.14% over the last 52 weeks. Exxon has also been an excellent dividend paying company. The company has been paying quarterly dividends for decades and has increased its dividend by 46% over the last five years. Exxon offers investors capital appreciation along with a steadily increasing dividend. Exxon should be a core investment in any value investor's portfolio. I rate Exxon Mobil Corporation as a buy.

Altria Group Inc. (NYSE:MO): Altria Group has a market cap of $53.2 billion with a price to earnings ratio of 16.23. The stock has traded in a 52-week range of between $23.20 and $28.13. The current stock price is around $25.50. On July 20th, the company reported revenues of $5.92 billion, compared to revenues of $4.34 billion in the second quarter of 2010. Second quarter net income was $444 million compared to net income of $1.04 billion in the second quarter of 2010. In 2010, net income was up by 21% to $3.9 billion from $3.2 billion in 2009.

One of Altria Group’s competitors is Reynolds American Inc. (NYSE:RAI). Reynolds American is currently trading at around $38.00 with a market cap of $21.94 billion and a price to earnings ratio of 16.37. Reynolds American pays a dividend which yields 5.7% versus Altria Group, whose dividend yields 6.2%.

Altria Group is a company that investors can count on to turn a profit and pay a strong dividend. The company has paid quarterly dividends for decades, and currently pays a dividend of $1.64. The stock price has increased by 12.12% over the last 52 weeks and by 65.17% over the last three years. Investors in Altria may feel as if they have hit the daily double. The stock has provided strong capital appreciation with a dividend that yields over 6%. I rate Altria Group as a buy.

The Coca Cola Company (NYSE:KO): Coca Cola has a market cap of $160.63 billion with a price to earnings ratio of 13.03. The stock has traded in a 52-week range of between $57.22 and $71.77. The current stock price is around $70.00. On July 19th, the company reported revenues of $12.7 billion compared to revenues of $8.67 billion in the second quarter of 2010. Second quarter net income was $2.8 billion compared to $2.37 billion in the second quarter of 2010. Year-over-year net income increased to $11.8 billion in 2010 from $6.82 billion in 2009.

Coca Cola’s biggest competitor is Pepsico Inc. (NYSE:PEP). Pepsico is currently trading at around $62.00 with a market cap of $98.12 billion and a price to earnings ratio of 15.77. Pepsico pays a dividend which yields 3.4% versus Coca Cola whose dividend yields 2.7%.

Coca Cola is a terrific company that has done a very good job of growing revenues and net income. In the second quarter, Coca Cola grew revenues by 46% and net income by 18%. Over the last 52 weeks, the stock price has increased by 21.32%. In addition to the strong earnings and stock performance, the company dividend has been increased by 51.6% over the last five years. I think that The Coca Cola should be a core investment in any investor’s portfolio. I rate The Coca Cola Company as a buy.

Kinder Morgan Energy Partners (NYSE:KMP): Kinder Morgan has a market cap of $22.88 billion with a price to earnings ratio of 120.56. The stock has traded in a 52-week range of between $63.42 and $78.00. The current stock price is around $69.00. On July 20th, the company reported revenues of $2.02 billion compared to revenues of $1.96 billion in the second quarter of 2010. Second quarter net income was -$61.7 million compared to net income of $269 million in the second quarter of 2010. In 2010 net income was $431 million compared to net income of $332 million in 2009.

One of Kinder Morgan’s competitors is Enterprise Products Partners (NYSE:EPD). Enterprise currently trades at around $41.00 with a market cap of $34.18 billion and a price to earnings ratio of 23.53. Enterprise Products pays a dividend which yields 6% versus Kinder Morgan whose dividend yields 6.8%.

Kinder Morgan has made a profit in each of the last 10 years. In 2010, the company increased its net income by 29.8% over the prior year. In addition to being consistently profitable, the company has been a great dividend paying company. The company has paid quarterly dividends for decades and now pays a whopping dividend of $4.60. Over the last five years, the company has raised the dividend by 143%. Investors seem to appreciate the company’s ability to turn a profit and pay high yielding dividends. That is why the stock price has increased by 60% over the last three years. Kinder Morgan has been a favorite of CNBC stock analyst Jim Cramer for quite some time. I agree with Jim Cramer and rate Kinder Morgan Energy Partners as a buy.

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

Source: 5 Stocks For The World's Best Dividend Portfolio