10 High Dividend Stocks With Superior, Long-Term Return Potential

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 |  Includes: BLK, ETE, ETP, KMI, MCHP, MXIM, NUE, PLD, SCCO, TWC
by: Insider Monkey

Defensive investors like high dividend yielding stocks and consider them to be viable options especially in inflationary environments. Additionally, they also select companies that can afford to pay consistently high dividends in order to achieve sustainable profits. We are concerned about the Fed’s inflationary monetary policy and therefore we have been recommending investors play defensively by purchasing high quality dividend stocks.

Below we compiled a list of high dividend US stocks with superior long-term return potential. All companies have at least $5 billion market cap, dividend yield higher than 3% and EPS expected growth rate is 15% annually for the next 5 years. The market data is sourced from Finviz.

Ticker

Company

Dividend Yield

Growth

YTD Return

BLK

BlackRock, Inc.

3.49%

18.15%

-15.46%

SCCO

Southern Copper Corp.

7.78%

18.34%

-31.91%

KMI

Kinder Morgan, Inc.

4.24%

21.70%

-6.44%

TWC

Time Warner Cable Inc.

3.13%

15.26%

-5.23%

PLD

Prologis, Inc.

3.83%

16.70%

-5.18%

NUE

Nucor Corporation

3.72%

64.90%

-8.45%

ETP

Energy Transfer Partners

7.80%

15.77%

-6.68%

ETE

Energy Transfer Equity

6.65%

25.07%

2.01%

MXIM

Maxim Integrated Products

3.28%

17.33%

16.67%

MCHP

Microchip Technology Inc.

3.76%

15.65%

10.34%

Click to enlarge

BlackRock, Inc. (NYSE:BLK): BlackRock Inc. is a leading US investment management firm. BLK has a dividend yield of 3.49% and its EPS is expected to grow at 18.15% per year in the next five years. It has a market cap of $28.2B, a P/E ratio of 12.39 and lost 15.46% since the beginning of this year. John Paulson had $360 million of BLK shares.

Southern Copper Corp. (NYSE:SCCO): SCC is an integrated copper producer. SCCO has a dividend yield of 7.78% and its EPS is expected to grow at 18.34% per year in the next five years. It has a market cap of $26.7B, a P/E ratio of 13.46 and lost 31.91% since the beginning of this year. Jim Simons had $56 million invested in SCCO. Ken Fisher also had $25 million of SCCO stocks.

Kinder Morgan, Inc. (NYSE:KMI): Kinder Morgan is one of the largest pipeline transportation and energy storage companies in North America. KMI has a dividend yield of 4.24% and its EPS is expected to grow at 21.70% per year in the next five years. It has a market cap of $20.0B, a P/E ratio of 55.51 and lost 6.44% since the beginning of this year.

Time Warner Cable Inc. (NYSE:TWC): Time Warner Cable is a cable operator in the United States with systems located in New York State, the Carolinas, Ohio, Southern California and Texas. TWC has a dividend yield of 3.13% and its EPS is expected to grow at 15.26% per year in the next five years. It has a market cap of $19.6B, a P/E ratio of 14.22 and lost 5.23% since the beginning of this year. Andreas Halvorsen invested over $700 million in TWC. Lee Ainslie, George Soros, Ken Fisher and many other famous hedge fund managers also had TWC in their portfolio.

Prologis, Inc. (NYSE:PLD): Prologis operates as a real estate investment trust and invests in properties located in the infill submarkets of its targeted markets. PLD has a dividend yield of 3.83% and its EPS is expected to grow at 16.70% per year in the next five years. It has a market cap of $13.4B and lost 5.18% since the beginning of this year. Robert Rodriguez and Steven Romick’s First Pacific Advisors had 120,000 shares of PLD.

Nucor Corporation (NYSE:NUE): Nucor manufacturs steel and steel products. NUE has a dividend yield of 3.72% and its EPS is expected to grow at 64.90% per year in the next five years. It has a market cap of $12.3B, a P/E ratio of 19.7 and lost 8.45% since the beginning of this year. Jeffrey Vinik and Jim Simons both had $26 million of NUE shares.

Energy Transfer Partners LP (NYSE:ETP): Energy Transfer Partners is a limited partnership based in the United States engaged in natural gas operations. ETP has a dividend yield of 7.80% and its EPS is expected to grow at 15.77% per year in the next five years. It has a market cap of $9.6B, a P/E ratio of 33.47 and lost 6.68% since the beginning of this year. Jim Simons had $6.8 million invested in ETP. Jean-Marie Eveillard also had $4.9 million of ETP stocks.

Energy Transfer Equity, L.P. (NYSE:ETE): Energy Transfer Equity is a limited partnership company. It has two segments: Investment in ETP and Investment in Regency. ETP injects and holds natural gas in its Bammel storage facility. Regency is a net seller of NGLs, condensate and natural gas. ETE has a dividend yield of 6.65% and its EPS is expected to grow at 25.07% per year in the next five years. It has a market cap of $8.4B, a P/E ratio of 27.84 and returned 2.01% since the beginning of this year. Chuck Royce had $24 million invested in ETE stocks.

Maxim Integrated Products Inc. (NASDAQ:MXIM): Maxim designs, develops, manufactures and markets a range of linear and mixed-signal integrated circuits. MXIM has a dividend yield of 3.28% and its EPS is expected to grow at 17.33% per year in the next five years. It has a market cap of $7.8B, a P/E ratio of 16.09 and returned 16.67% since the beginning of this year. Ken Griffin had $47 million of MXIM shares. Jim Simons also had $30 million invested in the stock.

Microchip Technology Inc. (NASDAQ:MCHP): Microchip Technology Incorporated develops and manufactures semiconductor products used by its customers for a range of embedded control applications. MCHP has a dividend yield of 3.76% and its EPS is expected to grow at 15.65% per year in the next five years. It has a market cap of $7.1B, a P/E ratio of 16.38 and returned 10.34% since the beginning of this year. Jim Simons had $68 million of MCHP shares. Ray Dalio also invested $32 million in the stock.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.