Below we compiled a list of high dividend stocks with superior long term return potential. All companies have a dividend yield of over 2.5% and an expected growth rate of 10% to 15% annually for the next five years. The market data is sourced from Finviz. The top 20 stocks with the biggest market cap are as follows:
Ticker | Company | EPS growth | Dividend Yield | YTD Return |
Microsoft Corporation | 11.25% | 3.13% | -6.61% | |
General Electric Co. | 13.90% | 3.88% | -13.40% | |
Intel Corporation | 10.65% | 3.77% | 8.88% | |
Philip Morris Intl | 11.68% | 4.86% | 11.74% | |
GlaxoSmithKline | 12.75% | 5.19% | 10.93% | |
McDonald's Corp. | 10.47% | 3.18% | 17.26% | |
Unilever plc | 10.85% | 3.95% | 3.54% | |
British American Tobacco | 10.50% | 4.53% | 16.29% | |
Nippon Telegraph & Telephone | 12.60% | 2.62% | 3.14% | |
STD | Banco Santander, S.A. | 12.40% | 10.83% | -21.06% |
China Life Insurance Co. | 13.00% | 2.63% | -41.59% | |
Royal Bank of Canada | 10.62% | 4.75% | -9.72% | |
United Technologies Corp. | 12.67% | 2.67% | -7.15% | |
The Toronto-Dominion Bank | 10.62% | 3.92% | -2.04% | |
United Parcel Service, Inc. | 11.48% | 3.29% | -11.06% | |
Taiwan Semiconductor | 15.00% | 4.40% | -2.16% | |
The Home Depot, Inc. | 13.18% | 2.98% | -2.07% | |
3M Co. | 12.86% | 2.99% | -13.12% | |
Diageo plc | 10.60% | 3.41% | 7.72% | |
Boeing Co. | 11.66% | 2.71% | -3.42% |
Microsoft Corporation (MSFT): Microsoft Corporation is engaged in developing, licensing and supporting a range of software products and services. MSFT has a dividend yield of 3.13% and returned -6.16% since the beginning of this year. Its EPS is expected to grow at 11.25% per year over the next five years. It has a market cap of $214.32B and a P/E ratio of 9.47. Boykin Curry, Jean-Marie Eveillard, Ken Fisher and David Einhorn all have about $400 million to $500 million of MSFT shares.
General Electric Co. (GE): GE is a diversified technology and financial services corporation. GE has a dividend yield of 3.88% and returned -13.40% since the beginning of this year. Its EPS is expected to grow at 13.90% per year over the next five years. It has a market cap of $163.78B and a P/E ratio of 11.98. Ken Fisher had nearly $600 million invested in GE. Bill Miller, Warren Buffett and D. E. Shaw all invested more than $100 million in GE.
Intel Corporation (INTC): Intel Corporation is a semiconductor chip maker company. INTC has a dividend yield of 3.77% and returned 8.88% since the beginning of this year. Its EPS is expected to grow at 10.65% per year over the next five years. It has a market cap of $117.15B and a P/E ratio of 10.23.
Philip Morris International, Inc. (PM): Philip Morris International is engaged in the manufacture and sale of cigarettes and other tobacco products. PM has a dividend yield of 4.86% and returned 11.74% since the beginning of this year. Its EPS is expected to grow at 11.68% per year over the next five years. It has a market cap of $111.32B and a P/E ratio of 14.5. Tom Russo had $543 million invested in PM. Jim Simons and D. E. Shaw also both had nearly $200 million of PM.
GlaxoSmithKline plc (GSK): GlaxoSmithKline is global healthcare group. GSK has a dividend yield of 5.19% and returned 10.93% since the beginning of this year. Its EPS is expected to grow at 12.75% per year over the next five years. It has a market cap of $105.91B and a P/E ratio of 21.66. Ken Fisher had $500 million of GSK shares.
McDonald's Corp. (MCD): McDonald’s Corporation franchises and operates McDonald’s restaurants in the global restaurant industry. MCD has a dividend yield of 3.18% and returned 17.26% since the beginning of this year. Its EPS is expected to grow at 10.47% per year over the next five years. It has a market cap of $90.82B and a P/E ratio of 17.78. Jim Simons had over $200 million of MCD shares. Ric Dillon also invested $154 million in MCD.
Unilever plc (UL): Unilever is a supplier of fast moving consumer goods. UL has a dividend yield of 3.95% and returned 4.54% since the beginning of this year. Its EPS is expected to grow at 10.85% per year over the next five years. It has a market cap of $88.64B and a P/E ratio of 15.06.
British American Tobacco plc (BTI): British American Tobacco produces and sells cigarettes. BTI has a dividend yield of 4.53% and returned 16.29% since the beginning of this year. Its EPS is expected to grow at 10.50% per year over the next five years. It has a market cap of $85.21B and a P/E ratio of 17.4. Tom Russo had $179 million invested in BTI shares.
Nippon Telegraph & Telephone Corp. (NTT): Nippon Telegraph & Telephone is a Japan-based telecommunications provider. NTT has a dividend yield of 2.62% and returned 3.14% since the beginning of this year. Its EPS is expected to grow at 12.60% per year over the next five years. It has a market cap of $68.55B and a P/E ratio of 11.98. D. E. Shaw and Jim Simons both had $13 million of NTT shares.
Banco Santander, S.A. (STD): Santander is a financial group. STD has a dividend yield of 10.83% and returned -21.06% since the beginning of this year. Its EPS is expected to grow at 12.40% per year over the next five years. It has a market cap of $66.76B and a P/E ratio of 5.95. Ken Fisher invested $334 million in STD.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
