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We like high dividend yielding stocks and consider them as viable options especially in inflationary environments. We are concerned about the Fed’s inflationary monetary policy and therefore we recommend investors play defensively by purchasing high dividend stocks, especially those with low risk.

Below we compiled a list of 15 high-dividend, low-risk, large cap stocks. All companies have at least $10 billion market cap and dividend yields higher than 4%. We picked the top 15 stocks with the lowest beta.

High dividend low beta stocks usually experience only a fraction of the declines in the market. When the declines in the stock market coincide with declines in interest rates, high dividend low beta stocks might even have positive returns. This year is a great example for this. Only two out of 15 stocks in our list actually had negative returns. These stocks as a group have outperformed the market by double digits. Investors should invest in a diversified list of these stocks to minimize idiosyncratic stock risks.

Ticker

Company

Dividend Yield

Beta

YTD Return

ED

Consolidated Edison

4.35%

0.28

15.16%

PCG

PG & E Corp.

4.40%

0.31

-10.64%

NLY

Annaly Capital

15.31%

0.31

-2.73%

SO

Southern Company

4.57%

0.32

12.10%

KMP

Kinder Morgan Energy Partners

6.75%

0.34

1.58%

PGN

Progress Energy Inc.

4.95%

0.34

20.09%

XEL

Xcel Energy Inc.

4.31%

0.4

5.83%

DUK

Duke Energy Corporation

5.13%

0.42

13.91%

PPL

PPL Corporation

5.10%

0.45

8.41%

MO

Altria Group Inc.

6.19%

0.47

12.57%

PEG

Public Service Enterprise Group

4.29%

0.51

3.77%

FE

FirstEnergy Corp.

5.07%

0.52

21.94%

EPD

Enterprise Products Partners

5.95%

0.55

1.90%

BMY

Bristol-Myers Squibb

4.03%

0.56

28.20%

AEP

American Electric Power

4.97%

0.56

6.96%

Consolidated Edison Inc. (ED): Consolidated Edison provides electric and natural gas services. ED has a dividend yield of 4.35% and a beta of 0.28. It returned 15.16% since the beginning of this year, and has a market cap of $16.2B and a P/E ratio of 15.11. Michael Messner had $35 million of ED stocks.

PG & E Corp. (PCG): PG&E Corporation is a holding company whose primary purpose is to hold interests in energy-based businesses. PCG has a dividend yield of 4.40% and a beta of 0.31. It lost 10.64% since the beginning of this year, and has a market cap of $16.6B and a P/E ratio of 15.5. Jim Simons had over $50 million invested in PCG shares (see billionaire Simons’ top stock picks).

Annaly Capital Management, Inc. (NLY): Annaly Capital Management owns, manages and finances a portfolio of real estate related investments. NLY has a dividend yield of 15.31% and a beta of 0.31. It lost 2.73% since the beginning of this year, and has a market cap of $15.2B and a P/E ratio of 5.48. Bill Miller invested $66 million in NLY shares.

Southern Company (SO): Southern Company is one of America's largest generators of electricity. SO has a dividend yield of 4.57% and a beta of 0.32. It returned 12.10% since the beginning of this year, and has a market cap of $35.4B and a P/E ratio of 17.59. Phill Gross and Robert Atchinson invested over $100 million in SO stocks.

Kinder Morgan Energy Partners LP (KMP): KMP is a pipeline transportation and energy storage company in North America. KMP has a dividend yield of 6.75% and a beta of 0.34. It returned 1.58% since the beginning of this year, and has a market cap of $22.5B and a P/E ratio of 117.45. Michael Messner had $22 million invested in KMP.

Progress Energy Inc. (PGN): Progress Energy is a utility holding company engaged in the regulated electric utility business. PGN has a dividend yield of 4.95% and a beta of 0.34. It returned 20.09% since the beginning of this year, and has a market cap of $14.8B and a P/E ratio of 17.35. Cliff Asness had $66 million invested in PGN.

Xcel Energy Inc. (XEL): Xcel Energy is engaged in the utility business. XEL has a dividend yield of 4.31% and a beta of 0.4. It returned 5.83% since the beginning of this year, and has a market cap of $11.7B and a P/E ratio of 14.2. John A. Levin had $17 million invested in XEL stocks.

Duke Energy Corporation (DUK): Duke Energy is an energy company primarily located in the Americas. DUK has a dividend yield of 5.13% and a beta of 0.42. It returned 13.91% since the beginning of this year, and has a market cap of $25.9B and a P/E ratio of 12.66. Israel Englander had $28 million invested in DUK (check out Englander’s top stock picks).

PPL Corporation (PPL): PPL is an energy and utility holding company. PPL has a dividend yield of 5.10% and a beta of 0.45. It returned 8.41% since the beginning of this year, and has a market cap of $15.9B and a P/E ratio of 10.98. Phill Gross and Robert Atchinson had $83 million PPL stocks. Steven Cohen also had $67 million PPL shares.

Altria Group Inc. (MO): Altria Group is the biggest cigarettes manufacturer in the world. MO has a dividend yield of 6.19% and a beta of 0.47. It returned 12.57% since the beginning of this year, and has a market cap of $54.9B and a P/E ratio of 16.06. Tom Russo had $187 million invested in MO shares.

Source: 15 High-Dividend, Low-Risk, Large Cap Stocks