Harvey Neiman manages the 5 star rated Neiman Large Cap Value Fund that trades under the symbol NEIMX. Mr. Neiman was on CNBC last week explaining the benefits of investing in large cap stocks that pay dividends. His value fund invests at least 80% of their total assets in companies with a market cap of $5B or more.
Mr. Neiman’s thesis is one that we agree with and talk about on our dividend blog. Large cap dividend paying stocks help you weather the storms of the stock market, and provide stability in a time of increased volatility. If your portfolio needs to be more predictable, consider his top 5 dividend paying large cap picks:
Public Service Enterprise Group (PEG)
Public Service Enterprise Group owns and operates three energy-related subsidiaries which include PSEG Power, PS Electric and Gas and PSEG Energy Holdings. These companies are mostly located in the Northeastern and Mid Atlantic United States.
PEG has a market cap of 16.5B and pays annual dividend of $1.37, which gives it a yield of 4.2%. PEG has a 3 year dividend growth rate of 2.8% and has increased their dividend for the last 7 years. They have been paying dividends since 1907.
Proctor & Gamble (PG)
Proctor & Gamble develops and sells consumer good products in over 180 countries. They offer a wide range of personal health and care products which are sold in grocery stores, membership clubs, drug stores and neighborhood stores.
Proctor and Gamble has a market cap of 173B and has a 3.3% dividend yield. Their 3 year dividend growth rate is 9.8%. They have increased their dividend for 57 consecutive years and has been paying dividends since 1891. PG is one of the top rated stocks on our safe dividend list.
Chubb (CB)
The Chubb Corporation is a holding company for a group of insurance companies that operate in three segments. Those segments are personal, commercial and specialty insurance. These three business units operate in all 50 US states, Canada, Europe and Asia.
Chubb has a market cap of 18B and pays an annual dividend of $1.56 per share giving it a 2.4% dividend yield. CB has a 3 year dividend growth rate of 6.3% and has increased it’s dividend for each of the last 46 years.
Intel (INTC)
Intel operates in the semiconductor chip making company. Their chips are used in computers and communication devices. We believe that Intel stands to gain the more market share in the mobile chip space in 2012 than any other semiconductor. Intel’s CEO Paul Otellini recently explained their new mobile processor develops and their plans to increase their market share going forward.
INTC has a market cap of 123B and has a dividend yield of 3.5%. Their 3 year dividend growth rate is 13% and they have increased their dividend for 7 consecutive years. Intel has a low payout ratio of 33% and is one of our favorite tech dividend stocks.
Chevron (CVX)
Chevron Corporation manages its US and International subsidiaries that operate in energy services, power generation, mining and petroleum operations. Chevron explores for crude oil and natural gas, transport oil through international pipelines and refine oil into petroleum products.
Chevron has a market cap of 194B and pays an annual dividend of $3.24 which gives them a 3.3% dividend yield. CVX has a 3 year dividend growth rate of 6.9% and has raised their dividend for 19 consecutive years. They have a payout ratio of 22% and have been paying dividends since 1912.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
