The past few weeks have been a nightmare for small investors as they watch the markets tumble on fears of a Greek default and government shutdown. Anyone looking for safety in these trying times should take a look at the 5 following large cap stocks that sport attractive dividend yields.
Nokia (NOK) – I will admit that I trashed Nokia earlier this year as it appeared as though they were having more difficulties than expected with the transition to Windows for their phones. But now the first generation Windows phones are right around the corner and all of the bad press has beaten down the stock to attractive value levels.
The stock sells for a dividend yield approximating 11% and the installed worldwide sales base will be hungry to push the new phone out to consumers. The stock may be riskier than most but if the phones begin to take a solid market share the stock will recover quickly.
Penn West Petroleum (PWE) – At the beginning of the year Penn West completed the transition from a trust to a corporation in Canada. Production for 2011 was hit by wildfires in Alberta and floods in Saskatchewan causing it to cut production forecasts.
The company’s operations are in the US and Canada, safe jurisdictions for investors worried about overseas turmoil, and the stock is currently yielding almost 7%. Not bad for an oil stock with little political risk.
AT&T (T) – The stalwart of the telecommunications industry currently sells for just 8.5 times earnings with a 6.1% dividend yield. The wireless industry is undergoing some growth pains as the enormous bandwidth constraints from content providers are taxing capacity leading to the bid for T-Mobile.
While AT&T may not be the sexy growth name for investors in these uncertain times the stability of earnings and solid dividend yield should be respected by investors.
Exelon Corp. (EXC) – Exelon Corp. has ownership interested in 11 nuclear power plants along with energy delivery businesses in the areas surrounding and including Chicago and Philadelphia.
The nuclear industry has been beaten down following the disaster at Fukushima but despite the problems this may be the right time to consider investing in nuclear. We need energy alternatives and sentiment towards nuclear is negative enough that as a contrarian I would consider allocating some funds here.
Exelon sells for a PE of 10.6 with a dividend yield of almost 5% giving investors a nice way to play nuclear power and utilities.
Thomson Reuters Corp. (TRI) – Thomson Reuters provides information for businesses and individuals through a number of sources worldwide. The Reuters news service is the brand well known to consumers. Lesser known but just as important or even more is the data provided to stock market and corporate professionals.
The stock may be expensive on a PE basis of 18 but the services are strong cash generators giving the stock a dividend yield of 4.47%.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
