High Dividend Stocks With Institutional Buying

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Includes: DUK, FE, HCN, HCP, PPL, RAI, SO, VZ
by: Dividendinvestr

Financial institutions, like pension funds and hedge funds, tend to be risk-adverse. They may take some risks but those risks are carefully hedged and well-researched. As such, keeping an eye on what institutional investors are buying can be a great strategy for do-it-yourself investors looking for stable returns. The higher the percentage of available shares owned by institutional investors, the better the investment tends to be.

The stocks on this list have market caps over $10B, dividend yields over 4% and institutional ownership over 44%. Each stock also carried the unique distinction of returning over 17% last year.


Ticker

Company

Market Cap

Forward P/E

Dividend Yield

Payout Ratio

Institutional Ownership

HCP

HCP, Inc.

$16.93B

22.76

4.63%

125.82%

96.08%

HCN

Health Care REIT, Inc.

$10.44B

48.26

5.24%

508.47%

81.57%

PPL

PPL Corporation

$17.01B

12.01

4.76%

54.40%

72.69%

FE

FirstEnergy Corp.

$18.53B

13.42

4.97%

92.33%

71.87%

PGN

Progress Energy Inc.

$16.53B

17.45

4.43%

93.73%

56.08%

VZ

Verizon Communications

$113.58B

15.73

4.99%

78.58%

54.16%

DUK

Duke Energy Corporation

$29.28B

15.38

4.55%

71.75%

49.24%

RAI

Reynolds American Inc.

$24.14B

13.95

5.41%

90.96%

46.31%

SO

Southern Company

$39.90B

17.14

4.08%

75.53%

44.08%

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HCP, Inc. (NYSE:HCP) is a healthcare facility real-estate investment trust (REIT). It has a $17.11B market cap and is priced at 23.01 times its forward earnings. HCP offers a 4.58% dividend yield with a 125.82% payout ratio. It has 96.08% institutional ownership and has returned 17.97% over the last 12 months. D.E. Shaw had $33.65 million in HCP at the end of the third quarter.

Health Care REIT, Inc. (NYSE:HCN) is a healthcare facility real-estate investment trust (REIT). It has a $10.55B market cap and is priced at 48.76 times its forward earnings. HCN offers a 5.19% dividend yield with a 508.47% payout ratio. It has 81.57% institutional ownership and has returned 20.38% over the last 12 months. Jason Gottlieb's Visium Asset Management had $41.94 million invested in HCN at the end of the third quarter.

PPL Corporation (NYSE:PPL) is an electric utilities company. It has a $16.67B market cap and is priced at 11.76 times its forward earnings. PPL offers a 4.86% dividend yield with a 54.40% payout ratio. It has 72.69% institutional ownership and has returned 14.05% over the last 12 months. Steve Cohen's SAC Capital Advisors is a fan of PPL. The fund had more than $75.98 million invested in PPL at the end of September after increasing its position in the company by +11% during the third quarter.

FirstEnergy Corp. (NYSE:FE) is an electric utilities company. It has a $17.90B market cap and is priced at 12.97 times its forward earnings. FE offers a 5.14% dividend yield with a 92.33% payout ratio. It has 71.87% institutional ownership and has returned 19.68% over the last 12 months. Jean-Marie Eveillard's First Eagle Investment Management had a large $552.60 million stake in the company at the end of the third quarter. The position accounts for roughly 2.75% of First Eagle's portfolio.

Progress Energy, Inc. (PGN) is an electric utilities company. It has a $16.22B market cap and is priced at 17.12 times its forward earnings. PGN offers a 4.51% dividend yield with a 93.73% payout ratio. It has 56.08% institutional ownership and has returned 32.87% over the last 12 months. Cliff Asness' AQR Capital Management had $108.16 million in PGN at the end of September after increasing its holding in the company by +52% during the third quarter.

Verizon Communications, Inc. (NYSE:VZ) is a large domestic telecom company. It has a $112.48B market cap and is priced at 15.58 times its forward earnings. VZ offers a 5.03% dividend yield with a 78.58% payout ratio. It has 54.16% institutional ownership and has returned 14.96% over the last 12 months. Phill Gross and Robert Atchinson's Adage Capital Management is a big fan of VZ. The fund had roughly $153.22 million invested in the company at the end of the third quarter.

Duke Energy Corporation (NYSE:DUK) is an electric utilities company. It has a $28.78B market cap and is priced at 15.12 times its forward earnings. DUK offers a 4.63% dividend yield with a 71.75% payout ratio. It has 49.24% institutional ownership and has returned 27.55% over the last 12 months. Michael Messner's Seminole Capital Management had $54.25 million invested in DUK at the end of September after increasing its holding in the company by +48% during the third quarter.

Reynolds American, Inc. (NYSE:RAI) is a cigarettes company. It has a $24.03B market cap and is priced at 13.88 times its forward earnings. RAI offers a 5.43% dividend yield with a 90.96% payout ratio. It has 46.31% institutional ownership and has returned 33.39% over the last 12 months. David Winters' Wintergreen Advisors, Jim Simons' Renaissance Technologies and Cliff Asness' AQR Capital Management are fans of RAI.

Southern Company (NYSE:SO) is an electric utilities company. It has a $38.81B market cap and is priced at 16.68 times its forward earnings. SO offers a 4.20% dividend yield with a 75.53% payout ratio. It has 44.08% institutional ownership and has returned 22.86% over the last 12 months. Jim Simons' Renaissance Technologies had $88.65 million invested in SO at the end of September after increasing its stake in the company by +288% during the third quarter.

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