High-dividend stocks deliver income and perform much better than the rest of the market, both during market downturns and on the average. Some major market players also have high dividend yields. People can find much more information about large cap stocks, and so therefore, the market valuations for these stocks are more likely to be accurate. If we do not have much intelligence about individual stocks, and we want to invest for dividend payments, choosing high dividend large cap stocks is a good idea.
Below are 18 large cap and high-dividend stocks that have a market cap of over $30 billion and a dividend yield higher than 4%. The market data is sourced from Finviz and hedge fund holdings are obtained from Insider Monkey.
|Stock||Sector*||Market Cap||Dividend Yield||P/E||Return (52- week)|
|Vodafone Group (VOD)||3||141.5||5.5%||12.6||6.0%|
|HSBC Holdings (HBC)||1||137.9||4.7%||8.1||-28.3%|
|Merck & Co. (MRK)||2||116.8||4.4%||26.3||15.7%|
|Verizon Communications (VZ)||3||110.2||5.1%||15.6||14.6%|
|British American Tobacco(BTI)||4||89.9||4.2%||18.2||30.2%|
|Royal Bank of Canada (RY)]||1||73.3||4.2%||11.8||-1.2%|
|Altria Group (MO)||4||59.6||5.7%||17.3||27.3%|
|The Bank Of Nova Scotia (BNS)||1||55.4||4.0%||11.3||-6.6%|
|Eli Lilly (LLY)||2||46.2||4.9%||9.5||20.8%|
|Southern Company (SO)||5||39.0||4.2%||18.6||24.0%|
|Bank of Montreal (BMO)||1||36.4||5.0%||11.0||0.7%|
|BCE, Inc. (BCE)||3||32.2||4.9%||15.6||22.6%|
|Canadian Imperial Bank of Commerce (CM)||1||30.2||4.8%||10.2||-1.5%|
*1- Financial, 2- Healthcare, 3- Technology, 4- Consumer Goods, 5- Utilities
AT&T (T) is one of the leading telecomminication companies operating worldwide. T recently traded at $30.07 and has a 5.9% dividend yield. T gained 13.4% during the past 12 months. The stock has a market cap of $178.2 billion, P/E ratio of 15.3 and Total Debt/Equity ratio of 0.84. T also had an EPS growth rate of 17.8% during the last five years. T sold 16 million smartphones, including more than 9 million iPhones in the first three quarters. According to the company's third quarter financial results, earnings per share was up 13% and EPS was up 3.5% year to date, excluding significant items. T achieved $10.4 billion cash from operating activities. During the third quarter, T passed 100 million subscribers and achieved gains in every customer category. I believe that T will continue to be a major market player with its excellent dividend yield and strong financial structure.
Phill Gross' Adage Capital Management held the largest position in T with its $238 million investment at the end of September. Phill Gross reduced his holdings in this company by 18% during the third quarter of 2011. Louis Bacon initiated a $11 million brand new position in T during the third quarter of 2011. Jim Simons sold out $94 million worth of T shares during the same quarter.
Pfizer (PFE) is one of the leading biopharmaceutical companies operating worldwide. PFE recently traded at $21.84 and has a 4% dividend yield. PFE gained 24.9% during the past 12 months. The stock has a market cap of $167.9 billion, P/E ratio of 17.2 and Total Debt/Equity ratio of 2.25. Pfizer reported 3Q revenues of about $17.2 billion, increased 7% quarter-over-quarter, which reflects operational growth of $247 million. Pfizer generated $19.6 billion cash and $11.5 billion net income during the last 12 months. I think that Pfizer is a stable stock, and is currently trading at a fair price. Ken Fisher's Fisher Asset Management held the largest position in PFE, with its $389 million investment at the end of September. Frank Brosens' Taconic Capital purchased nearly $82 million worth of PFE shares during the third quarter of 2011. He had $274 million invested in PFE at the end of September. David Tepper's Appaloosa Management sold out $299 million worth of PFE shares during the third quarter of 2011.
Vodafone (VOD) provides mobile telecommunication services worldwide.VOD recently traded at $26.88, and has a 5.5% dividend yield. VOD gained 6% during the past 12 months. The stock has a market cap of $141.5 billion, P/E ratio of 12.6 and Total Debt/Equity ratio of 0.99. VOD also had an EPS growth rate of 4.1% during the last five years. Boykin Curry's Eagle Capital Management had $231 million invested in VOD at the end of September.
HSBC (HBC) provides various banking and financial products and services. HBC recently traded at $38.6 and has a 4.7% dividend yield. HBC lost 28.3% during the past 12 months. The stock has a market cap of $137.9 billion, P/E ratio of 8.1 and Total Debt/Equity ratio of 0. HBC also had an EPS growth rate of -11.7% during the last five years.
Merck & Co (MRK) is a major drug manufacturing company. MRK recently traded at $38.32 and has a 4.4% dividend yield. MRK gained 15.7% during the past 12 months. The stock has a market cap of $116.8 billion, P/E ratio of 26.3 and Total Debt/Equity ratio of 2.06. MRK also had an EPS growth rate of -33.4% during the last five years.