10 High Dividend Stocks Picked By S&P 10 Strategy

|
Includes: CINF, CTL, FTR, HCN, MO, PBI, POM, RRD, T, WIN
by: Insider Monkey

S&P 10 strategy is an investment strategy recommended by Professor Jeremy Siegel, a Russell E. Palmer Professor of Finance at the Wharton School of the University of Pennsylvania. The strategy is to invest in the 10 highest yielding stocks among S&P 500 companies, which has proven to have superior returns over-time. In Siegel’s book “S&P 10 Investment Strategy”, he showed that this strategy performed even better than the Dow 10 over 1958 to 2003: a thousand dollars invested in these high yielding stocks from the S&P 500 Index at the end of 1957 accumulates to more than $811,000 and beats the Dow 10 by more than 1% per year.

Below we compiled a list of S&P 500 stocks with the highest dividend yields.

Frontier Communications Corporation (NYSE:FTR): Frontier is a communications company providing services predominantly to rural areas and small and medium-sized towns and cities. FTR has a dividend yield of 12.27% and lost 32.49% since the beginning of this year. It has a market cap of $6.1B and a P/E ratio of 38.19. Bernard Horn and D. E. Shaw both had over $30 million invested in FTR shares (check out Shaw’s top stock picks).

CenturyLink, Inc. (NYSE:CTL): CenturyLink is an integrated communications company. CTL has a dividend yield of 8.76% and lost 24.28% since the beginning of this year. It has a market cap of $20.4B and a P/E ratio of 14.03. Phill Gross and Robert Atchinson invested $111 million in CTL. Steven Cohen also had over $100 million invested in the stock (check out Cohen’s top stock picks).

Windstream Corporation (NASDAQ:WIN): Windstream Corporation is a communications and technology solutions provider. WIN has a dividend yield of 8.58% and lost 11.34% since the beginning of this year. It has a market cap of $5.9B and a P/E ratio of 21.18. Jim Simons had $32 million invested in WIN.

Pitney Bowes Inc. (NYSE:PBI): Pitney Bowes Inc. is a provider of mail processing equipment and integrated mail solutions. PBI has a dividend yield of 7.87% and lost 18.37% since the beginning of this year. It has a market cap of $3.8B and a P/E ratio of 10.87. Ray Dalio had $9 million invested in PBI.

R.R. Donnelley & Sons Company (NASDAQ:RRD): RR Donnelley is a global provider of integrated communications. RRD has a dividend yield of 7.37% and lost 15.65% since the beginning of this year. It has a market cap of $2.7B and a P/E ratio of 23.15. Ron Gutfleish invested more than $100 million in RRD.

Altria Group Inc. (NYSE:MO): Altria Group produces and sells cigarettes and smokeless products. MO has a dividend yield of 6.12% and returned 13.89% since the beginning of this year. It has a market cap of $55.5B and a P/E ratio of 16.25. Tom Russo invested $187 million in MO.

Cincinnati Financial Corp. (NASDAQ:CINF): Cincinnati Financial Corporation is engaged in property casualty insurance. CINF has a dividend yield of 6.11% and lost 13.45% since the beginning of this year. It has a market cap of $4.3B and a P/E ratio of 14.55. Jean-Marie Eveillard had $336 million invested in CINF.

Health Care REIT Inc. (NYSE:HCN): Health Care REIT, Inc. is a real estate investment trust engaged in senior housing and health care real estate. HCN has a dividend yield of 6.11% and returned 2.56% since the beginning of this year. It has a market cap of $8.3B and a P/E ratio of 203.48. Jacob Gottlieb had $42 million of HCN stocks.

AT&T, Inc. (NYSE:T): AT&T is a provider of telecommunications services in the United States and worldwide. T has a dividend yield of 6.03% and gained 1.28% since the beginning of this year. It has a market cap of $169B and a P/E ratio of 8.64. Phill Gross and Robert Atchinson had $318 million of T stocks. Jim Simons also invested nearly $100 million in T.

Pepco Holdings, Inc. (NYSE:POM): Pepco Holdings is engaged in the transmission, distribution and default supply of electricity and the distribution and supply of natural gas. POM has a dividend yield of 5.71% and returned 8.18% since the beginning of this year. It has a market cap of $4.3B and a P/E ratio of 22.26. Jim Simons invested $10 million in POM.

Disclosure: I am long CTL, FTR, T.

About this article:

Expand
Author payment: $35 + $0.01/page view. Authors of PRO articles receive a minimum guaranteed payment of $150-500.
Want to share your opinion on this article? Add a comment.
Disagree with this article? .
To report a factual error in this article, click here