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Defensive investors like stocks with high dividend yields. They protect themselves from potential inflation by investing in these stocks. Additionally, stocks with PEG ratios less than one are considered undervalued by the market and have greater potential to grow in the future. We are concerned about the Fed’s inflationary monetary policy and we encourage investors to play defensively by purchasing high dividend stocks with low PEG ratios.

Below we compiled a list of 12 high dividend yield stocks with low PEG ratios. All of the companies have at least $10 billion market cap, dividend yield of over 5%, and a PEG ratio less than 1. The market data is sourced from Finviz.

Ticker

Company

Dividend Yield

PEG

YTD Return

BBVA

Banco Bilbao Vizcaya

7.33%

0.84

-15.56%

CRH

CRH plc

5.86%

0.67

-23.39%

E

Eni SpA

8.06%

0.96

-14.72%

MBT

Mobile Telesystems OJSC

8.06%

0.71

-37.81%

SCCO

Southern Copper Corp.

8.24%

0.45

-42.79%

SDRL

SeaDrill Limited

10.04%

0.62

-5.68%

SID

Companhia Siderurgica

7.52%

0.9

-46.42%

SLF

Sun Life Financial Inc.

6.16%

0.81

-18.24%

STD

Banco Santander, S.A.

10.56%

0.49

-19.06%

STO

Statoil ASA

5.42%

0.78

-6.76%

VIP

VimpelCom Ltd.

7.96%

0.62

-32.36%

YPF

YPF S.A.

8.90%

0.71

-26.16%

Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA): Banco Bilbao Vizcaya Argentaria SA is a Spain-based international financial group. BBVA has a dividend yield of 7.33% and a PEG ratio of 0.84. It has a market cap of $39.8B and lost 15.56% since the beginning of this year.

CRH plc (NYSE:CRH): CRH plc is a diversified building materials company. CRH has a dividend yield of 5.86% and a PEG ratio of 0.67. It has a market cap of $10.9B and lost 23.39% since the beginning of this year.

Eni SpA (NYSE:E): Eni is engaged in oil and gas exploration and production, gas marketing operations, management of gas infrastructures, power generation, petrochemicals, oil field services and engineering industries. E has a dividend yield of 8.06% and a PEG ratio of 0.96. It has a market cap of $69.7B and lost 14.72% since the beginning of this year. Jim Simons had $10 million invested in E shares (check out Simons’ top stock picks).

Mobile Telesystems OJSC (NYSE:MBT): Mobile Telesystems OJSC is a Russia-based telecommunications provider. MBT has a dividend yield of 8.06% and a PEG ratio of 0.96. It has a market cap of $13.4B and lost 37.81% since the beginning of this year. Hugh Sloane had $47 million invested in MBT shares in Q2.

Southern Copper Corp. (NYSE:SCCO): Southern Copper Corporation is an integrated copper producer. SCCO has a dividend yield of 8.24% and a PEG ratio of 0.45. It has a market cap of $22.5B and lost 42.79% since the beginning of this year. Jim Simons had $56 million of SCCO shares. Ken Fisher also invested $25 million in SCCO (check out Fisher’s top stock picks).

SeaDrill Limited (NYSE:SDRL): SeaDrill Limited is a Bermuda-based company active in the oil and gas industry. SDRL has a dividend yield of 10.04% and a PEG ratio of 0.62. It has a market cap of $13.9B and lost 5.68% since the beginning of this year. Jeffrey Vinik and Bain Capital both invested over $50 million in SDRL (check out Vinik’s top stock picks).

Companhia Siderurgica Nacional (NYSE:SID): Companhia Siderurgica Nacional is an integrated steel producer in Brazil and Latin America. SID has a dividend yield of 7.52% and a PEG ratio of 0.9. It has a market cap of $12.3B and lost 46.42% since the beginning of this year. Jim Simons and Ken Fisher both invested nearly $20 million in SID.

Sun Life Financial Inc. (NYSE:SLF): Sun Life Financial is an international financial services organization. SLF has a dividend yield of 6.16% and a PEG ratio of 0.81. It has a market cap of $13.8B and lost 18.24% since the beginning of this year.

Banco Santander, S.A. (STD): Santander is a financial group offering a range of financial products. STD has a dividend yield of 10.56% and a PEG ratio of 0.49. It has a market cap of $68.5B and lost 19.06% since the beginning of this year. Ken Fisher had $334 million of STD shares.

Statoil ASA (NYSE:STO): Statoil ASA is an integrated energy company. STO has a dividend yield of 5.42% and a PEG ratio of 0.78. It has a market cap of $67.7B and lost 6.76% since the beginning of this year.

VimpelCom Ltd. (NASDAQ:VIP): VimpelCom is a group of integrated telecommunications services operators. VIP has a dividend yield of 7.96% and a PEG ratio of 0.62. It has a market cap of $12.9B and lost 32.36% since the beginning of this year.

YPF S.A. (NYSE:YPF): YPF SA is an Argentinean integrated oil and gas company. YPF has a dividend yield of 8.90% and a PEG ratio of 0.71. It has a market cap of $14.1B and lost 26.16% since the beginning of this year. Eric Mindich had $440 million of YPF shares. Rob Citrone, Philippe Jabre, and Jeffery Altman also all invested about $50 million in YPF.

Source: 12 High Yield Stocks With Low PEG Ratios