Top 4 Large Cap Companies With High Yields

Includes: PBR, RDS.A, T, VOD
by: Anh Hoang

Normally investors would feel more comfortable to stay with the popular companies with long operating history and large market capitalization. Those companies' information will be spread very quickly across the market, and it will be reflected in the changes in their stock prices right away. Investors feel even more satisfied if those companies have long history of paying good dividends. Here are the top 4 Largest Cap Companies with the highest dividend yields:

Vodafone Group (NASDAQ:VOD): It is the global mobile communication company which provides a variety of communication services. It has the equity interests in more than 30 countries and has 40 partners worldwide. The company has been the constant dividend payer for several decades. Its share price is $26, with nearly $5 billion shares outstanding; the total market capitalization is nearly $130 billion. The dividend yield is 5.45%. Currently, it is trading at around 12 P/E, and at its book value.

Royal Dutch Shell (NYSE:RDS.A): The Netherlands independent oil/gas company is incorporated in 2002. It is operating in three segments: Upstream, Downstream and Corporate. Currently, its ADR is trading at $62.5 per share, with total market capitalization of $198.6 billion. Following the information in Google Finance, its current dividend yield is 5.4%. The market is valuing the company at 6.3x earnings multiple and its price-to-book value is 1.17x.

AT&T (NYSE:T): It is one of the biggest corporations with more than 252,000 employees in the telecommunication industry in the US and worldwide. It is currently operating in four main business segments: Wireless, Wireline, Advertising Solutions and Others, such as customer information service and corporate operation. AT&T has a long history of paying increasing dividends. Currently, the share price is $33.3, with around 5.86 billion shares; the total market capitalization is more than $195 billion. The dividend is $1.73. So the dividend yield stays at 5.3% per annum. It is trading at 48.1x P/E and 1.86 P/B.

Petrobras (NYSE:PBR): It is the Brazilian integrated oil/gas company. The operation engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. At the time of writing, its ADR is trading at $19.25/share, with 6.5 billion shares outstanding; the total market capitalization is $125.5 billion. Its dividend yield is 5.15%. The market is valuing Petrobras at only 6.2x P/E and 0.74x P/B.

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

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