With the current volatile market condition and low interest rate environment, investors are looking for safe assets to invest their money in. In addition, those investment assets should pay out good dividend to its shareholders, so that they can receive the constant cash flow on their investments. Here are the top 5 stocks with market capitalization of $10 billion or more which have the highest yields.
Annaly Capital Management (NLY) is the real estate investment trust (REIT) which owns, manages and finances a portfolio of real estate-related investments, including mortgage pass-through certificates, collateralized mortgage obligations and other securities representing interests in the obligations backed by pools of mortgage loans. The company also invests in Federal Home Loan Bank, Freddie Mac and Fannie Mae debentures. Currently, NLY's market capitalization is $16.63 Billion, with the share price of $17.14. In 2011, it paid out $2.44 in dividends per share, putting the yield at nearly 14.24%. Over the last 52 weeks, the share price has not experienced the wide fluctuation; it only moved in the range of $14 - $18.80 per share.
France Telecom (FTE) is the European mobile operator and ADSL internet access provider in Europe, and telecommunications services provider for multinational businesses under the Orange Business Services brand. Globally, it is serving 209 million customers, of which 150 million are mobile phone customers and 13.7 million are broadband internet customers. The current share price is $15.28 per share, and the market capitalization reaches $40.45 billion. With the $1.94 dividend per share in 2011, the dividend yield is as high as 12.7%. Europe is experiencing the financial mess relating to its euro currency, as investors tend to move away from any stocks which involves the European region. However, France Telecom should be viewed from different aspects, as it still remains a good European telecom stock. I personally expect the European economy will stay weak in the next few years, but the company's international assets, especially in Africa and Middle East, continue to have solid growth.
Telefonia SA (TEF) is the provider of public and private telecommunication services, including ancillary or complementary telecommunication and related services. At the current price of $17.70, the market capitalization is $26.64 billion. Last year, it paid out as much as $2.12 dividend per share; thus the dividend yield stays at nearly 12%. TEF got three business segments: Telefonica Spain, Telefonica Europe and Telefonica Latin America. The Latin America segment would remain the company's growth driver. This segment accounts for 46% of the company's revenue and EBITDA, and it is the firm's fastest-growing region. In 2010, TEF expanded its business via several acquisitions, including gaining full control of Vivo from Portugal Telecom (PT). Because of the huge premium paid for Vivo's acquisition, TEF's got much more debt burden on itself, pushing the net debt ratio up to 2.5 times EBITDA.
YPF SA (YPF) is an Argentinean integrated oil and gas company, operating in 6 activities. First is Exploration and Production which involves hydrocarbons exploration and production sites in Neuquina, Cuyana, San Jorge Gulf, Austral and Nordeste basins. Second is Refining and Logistics, which controls the refineries of La Plata, Lujan de Cuyo and Plaza Huincul in the province of Buenos Aires. The third segment is the marketing and selling of automotive, aeronautics, naval, farming and industrial fuels. Fourth is Chemicals, manufacturing a variety of industrial products, including a large group of raw materials for chemical, industrial and agricultural activities. Fifth is the Lubricants segment, which engages in the development, production and distribution of lubricants, asphalts and derivatives. Last but not least, the YPG gas segment does the retail distribution of liquefied petroleum gas. The company's total market capitalization is $12.66 billion, with the share price of $32.2. In 2011, YPF paid out total $3.4 dividend per share. Thus, the current dividend yield is 10.56%.
Telefonia Brasil (VIV) is the subsidiary of TEF, focusing on fixed-line telecommunications services and international as well as interregional long-distance services, especially in Sao Paulo. Besides, it also supplies multimedia communication services, such as audio, data and voice information. Its telephone network includes 11.3 million fixed lines in service, 3.3 million broadband clients and 0.5 million Pay television clients. In terms of access lines in services, the largest segment belongs to residential, accounting for 70%, next is commercial segment, accounting for 24%. Only 2% is for public telephone lines and the rest 3% is for its own use and testing. VIV's share price is $27.24. With 1.13 billion shares outstanding, the total market capitalization of VIV is $30.85 Billion. Last year, VIV paid out dividends in three tranches, including special dividend of $1.64 per share. The total dividend paid out in 2011 was $2.65. So the dividend yield of VIV stays at 9.66%.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.