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With the way the economy is going, saving is a thing of the past. Consumers are lucky to find banks that are willing to pay more than 2% interest on a savings account and T-bills are even less. Given that inflation is higher than that, it essentially pays consumers to spend their money now – in other words, using traditional, conservative investments, a dollar today is worth more than a dollar tomorrow.

This situation leaves investors with two options: Start buying everything in bulk to get the most “bang for the buck” or turn to dividend-yielding stocks. Well chosen equities can have better risk/return characteristics than saving money in a bank or investing in a bond. While of course there is always some risk, there is also the promise of a much better return. Not only is the dividend yield of many stocks higher than what banks are offering for bonds and savings accounts, but the market price of dividend-yielding stocks usually go up over the long-term.

In this article we compiled a list of high dividend U.S. stocks that have superior long-term return potential. All companies have at least a 3% dividend yield, with an expected growth rate of at least 15% annually for the next 5 years.

BlackRock, Inc. (NYSE:BLK) is an asset management company with a 32.43B market cap. It has a dividend yield of 3.03% and a payout ratio of 28.64%. Over the last five years, BlackRock’s EPS has grown by 24.71% per annum and is expected to grow by 16.96% per annum over the next five years. It is currently trading at $180.01 a share. Bill Miller’s Legg Mason Capital Management had over $160.25 million invested in BlackRock at the end of September after increasing its position in the company by +5% during the third quarter. John Paulson’s Paulson & Co is also a fan of BlackRock.

Williams Companies, Inc. (NYSE:WMB) is an oil and gas pipeline company with a $15.81B market cap. It has a dividend yield of 3.73% and a payout ratio of 37.77%. Over the last five years, Williams’ EPS has shrunk by -3.21% per annum but it is expected to grow by 19.50% per annum over the next five years. It is currently trading at $26.87 a share. James Crichton and Adam Weiss’ Scout Capital Management had $355.07 million invested in Williams at the end of September after upping its stake in the company by +145% during the third quarter. Jeffrey Tannenbaum’s Fir Tree also likes Williams. The fund had $317.42 million invested in the company at the end of the third quarter.

Maxim Integrated Products, Inc. (NASDAQ:MXIM) is a broad line semiconductor company with a 7.68B market cap. It has a dividend yield of 3.34% and a payout ratio of 49.63%. Over the last five years, Maxim’s EPS has grown by 7.08% per annum and is expected to grow by 17.33% per annum over the next five years. It is currently trading at $26.03 a share. Jim Simons’ Renaissance Technologies, Robert Rodriguez and Steven Romick’s First Pacific Advisors and D.E. Shaw’s D E Shaw are fans of Maxim.

Cablevision Systems Corporation (NYSE:CVC) is a CATV systems company with a $4.13B market cap. It has a dividend yield of 4.06% and a payout ratio of 54.14%. Over the last five years, Cablevision’s EPS has grown by 44.71% per annum and is expected to grow by 16.38% per annum over the next five years. It is currently trading at $14.95 a share. Chase Coleman’s Tiger Global Management had $107.80 million in Cablevision at the end of September after increasing its holding in the company by +17% during the third quarter.

Lincare Holdings, Inc. (NASDAQ:LNCR) is a home healthcare company with a $2.20B market cap. It has a dividend yield of 3.22% and a payout ratio of 41.71%. Over the last five years, Lincare’s EPS has grown by 6.38% per annum and is expected to grow by 15.67% per annum over the next five years. It is currently trading at $24.64 a share. Larry Robbins’ Glenview Capital increased its position in Lincare by +82% during the third quarter, bringing its total position in the company to $126.71 million at the end of September, or roughy 2.31% of its portfolio. Robert Rodriguez and Steven Romick’s First Pacific Advisors is also a fan of Lincare.

Kronos Worldwide, Inc. (NYSE:KRO) is a speciality chemicals company with a $2.18B market cap. It has a dividend yield of 3.20% and has a payout ratio of 44.81%. Over the last five years, Kronos’ EPS has grown by 12.17% per annum and is expected to grow by 20.50% per annum over the next five years. It is currently trading at $20.50 a share. Kronos is a favorite pick for Donald Chiboucis’ Columbus Circle Investors, Jim Simons’ Renaissance Technologies and Israel Englander’s Millennium Management, each of which upped their stakes in the company 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.

Source: High Dividend Stocks With Superior Long-Term Return Potential