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Defensive investors like stocks with high dividends. At this moment, the 10-year Treasury bond has an extremely low yield to maturity. Although bonds often perform well in down markets, they are not good investments over the next ten years. A high dividend stock that yields over 5% will outperform the 10-year Treasury unless the stock goes down over 25% over the next 10 years, which is very unlikely for a diversified portfolio of high dividend yielding stocks.

We compiled a list of 34 large scale companies with tremendous market capitalization that also pay fat dividend checks regularly. Market data is obtained from Finviz. All companies in this list have a market capitalization over $10 billion, P/E ratio of below 10 and dividend yield of at least 4%.

Ticker

Company

Dividend Yield

YTD Return

AZN

AstraZeneca PLC

6.01%

2.89%

BBVA

Banco Bilbao Vizcaya Argentaria

7.16%

-15.86%

BP

BP plc

4.23%

-7.59%

BT

BT Group plc

4.25%

0.40%

CS

Credit Suisse Group

5.66%

-33.32%

E

Eni SpA

7.64%

-11.02%

ETR

Entergy Corporation

5.06%

-3.85%

HBC

HSBC Holdings plc

4.32%

-15.87%

LLY

Eli Lilly & Co.

5.18%

12.40%

MT

Arcelor Mittal

4.05%

-50.51%

NGG

National Grid plc

5.89%

16.07%

NLY

Annaly Capital

14.50%

7.37%

PUK

Prudential plc

4.29%

-4.62%

RDS.B

Royal Dutch Shell plc

5.01%

4.24%

RTN

Raytheon Co.

4.08%

-6.77%

SDRL

SeaDrill Limited

9.22%

2.68%

SKM

SK Telecom Co. Ltd.

5.07%

-17.28%

SLF

Sun Life Financial Inc.

5.63%

-10.55%

STD

Banco Santander, S.A.

10.47%

-18.36%

STO

Statoil ASA

5.00%

0.97%

T

AT&T, Inc.

5.94%

2.77%

TEF

Telefonica, S.A.

10.10%

-10.78%

TOT

Total SA

7.23%

-11.34%

VIP

VimpelCom Ltd.

7.58%

-29.02%

WBK

Westpac Banking Corp

7.47%

-6.46%

National Grid Plc (NYSE:NGG): National Grid is an international electricity and gas company. NGG has a 5.89% dividend yield and gained 16.07% since the beginning of this year. The stock has a market cap of $35.33 billion and P/E ratio of 9.97. Charles Clough held over $60 million in NGG.

Eli Lilly & Co (NYSE:LLY): Eli Lilly and Company discovers, develops, manufactures and sells pharmaceutical products. LLY has a 5.18% dividend yield and gained 12.40% since the beginning of this year. The stock has a market cap of $43.77 billion and P/E ratio of 8.88. Jim Simons had over $300 invested in LLY (check out Simons’ top stock picks).

Annaly Capital Management (NYSE:NLY): Annaly Capital Management, Inc. owns, manages and finances a portfolio of real estate related investments. NLY has a 14.50% dividend yield and gained 7.37% since the beginning of this year. The stock has a market cap of $17.38 billion and P/E ratio of 6.27. Bill Miller had over $60 million in NLY (check out Miller’s top stock picks).

Royal Dutch Shell Plc (RDS-B): Shell) is an independent oil and gas company. RDS-B has a 5.01% dividend yield and gained 4.24% since the beginning of this year. The stock has a market cap of $209.4 billion and P/E ratio of 7.48. Clint Carlson invested over $80 million in the stock.

AstraZeneca Plc (NYSE:AZN): AstraZeneca is a global biopharmaceutical company. AZN has a 6.01% dividend yield and gained 2.89% since the beginning of this year. The stock has a market cap of $60.05 billion and P/E ratio of 7.84. Jim Simons had $28 million in AZN at the end of June.

AT&T (NYSE:T): AT&T is one of the leading multinational telecom companies. T has a 5.94% dividend yield and gained 2.77% since the beginning of this year. The stock has a market cap of $171.5 billion and P/E ratio of 8.77. Phill Gross and Robert Atchinson had $318 million invested in T shares. Jim Simons also had nearly $100 million in T.

SeaDrill Limited (NYSE:SDRL): SeaDrill Limited is a Bermuda-based company active in the oil and gas industry. SDRL has a 9.22% dividend yield and gained 2.68% since the beginning of this year. The stock has a market cap of $15.18 billion and P/E ratio of 6.92. Jeffrey Vinik invested over $50 million in SDRL.

Statoil ASA (NYSE:STO): Statoil is an integrated energy company based in Norway. STO has a 5.00% dividend yield and gained 0.97% since the beginning of this year. The stock has a market cap of $73.31 billion and P/E ratio of 6.15. Israel Englander held the largest position in STO.

BT Group Plc (NYSE:BT): BT Group plc is a communications services company. BT has a 4.25% dividend yield and gained 0.40% since the beginning of this year. The stock has a market cap of $21.63 billion and P/E ratio of 8.95. Jim Simons had $24 million invested in BT.

Disclosure: I am long T.