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Defensive investors like stocks with high dividends, as such stocks can protect them from potential inflation. During the recent market turmoil, many stocks suffered losses and S&P 500 ETF (NYSEARCA:SPY) lost 15.51% over the third quarter. However, most stocks with high dividend yields outperformed the market and a certain number of these stocks received positive returns. Considering the fact that the recent disinflation period won't last forever, we believe investors should play more defensively and pick high dividend yielding stocks in near future.

Below, we compiled a list of top 10 large-cap S&P 500 stocks with high dividend yields. The market data are sourced from Finviz. These stocks have market capitalizations above $10 billion, annualized dividend yield of at least 4%, and declined the least during the third quarter.

Ticker

Company

Dividend Yield

Q3 Return

PGN

Progress Energy Inc.

4.65%

7.85%

BMY

Bristol-Myers Squibb Company

4.21%

7.62%

ED

Consolidated Edison Inc.

4.06%

6.66%

DUK

Duke Energy Corporation

4.80%

6.33%

SO

Southern Company

4.33%

5.30%

PPL

PPL Corporation

4.69%

3.11%

MO

Altria Group Inc.

5.96%

2.64%

PEG

Public Service Enterprise Group Inc.

4.01%

2.39%

FE

FirstEnergy Corp.

4.82%

1.91%

LO

Lorillard, Inc.

4.71%

1.46%

Progress Energy is a utility holding company engaged in the regulated electric utility business. PGN has a dividend yield of 4.65% and returned 7.85% during the third quarter. It has a market cap of $15.7B and a P/E ratio of 20.11. Cliff Asness had $66 million invested in PGN.

Bristol-Myers Squibb is engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of pharmaceutical products on a global basis. BMY has a dividend yield of 4.21% and returned 7.62% during the third quarter. It has a market cap of $53.2B and a P/E ratio of 16.18. Jim Simons had more than $200 million invested in BMY shares.

Consolidated Edison provides electric and natural gas services. ED has a dividend yield of 4.06% and returned 6.66% during the third quarter. It has a market cap of $17.3B and a P/E ratio of 15.88. Michael Messner had $35 million of ED stocks.

Duke Energy is an energy company primarily located in the Americas.DUK has a dividend yield of 4.80% and returned 6.33% during the third quarter. It has a market cap of $27.8B and a P/E ratio of 15.11. Israel Englander had $28 million invested in DUK.

Southern Company is one of America's largest generators of electricity. SO has a dividend yield of 4.33% and returned 5.30% during the third quarter. It has a market cap of $37.4B and a P/E ratio of 17.89. Phill Gross and Robert Atchinson invested over $100 million in SO stocks.

PPL Corporation owns or controls about 19,000 megawatts of generating capacity in the United State. PPL has a dividend yield of 4.69% and returned 3.11% during the third quarter. It has a market cap of $17.2B and a P/E ratio of 11.26. Phill Gross and Robert Atchinson had $83 million PPL stocks. Steven Cohen also had $67 million PPL shares.

Altria Group is the biggest cigarettes manufacturer in the world. MO has a dividend yield of 5.96% and returned 2.64% during the third quarter. It has a market cap of $56.6B and a P/E ratio of 16.48. Tom Russo had $187 million invested in MO shares.

Public Service Enterprise Group is an integrated generation and energy services company. PEG has a dividend yield of 4.01% and returned 2.39% during the third quarter. It has a market cap of $17.3B and a P/E ratio of 12.94. Jim Simons had $27 million invested in PEG stocks.

FirstEnergy holds eight principal electric utility operating subsidiaries. FE has a dividend yield of 4.82% and returned 1.91% during the third quarter. It has a market cap of $19.1B and a P/E ratio of 19.03. Jean-Marie Eveillard invested nearly $500 million in FE shares.

Lorillard is the manufacturer of cigarettes in the United States. LO has a dividend yield of 4.71% and returned 1.46% during the third quarter. It has a market cap of $14.9B and a P/E ratio of 14.85. Jean-Marie Eveillard had $250 million invested in LO.

Source: 10 Rock-Solid, High-Yielding Stocks