In an effort to highlight the dearth of available blue chip organizations with high market capitalization providing investors with a high yield as a result of the recent market downturn, I’ve captured the stocks with Market Capitalization of over $25 Billion that yield at least 5%. This data is current as of 1/11/09. The following table is sorted by highest yield first.
Note that of these 37 stocks, it is likely that some of them will have to curtail or halt their dividend payments in order to either preserve cash or to maintain their credit rating. For instance, Bank of America’s dividend has been cut and may be cut again according to some analysts. Additionally, given 1/3 chance that GE will lose its AAA credit rating, it may find itself in a position within the next year where the company needs to choose between sustaining its dividend at its current rate and losing its competitive advantage of the low cost of capital or it may have to cut its dividend and draw the ire of investors assuaged by prior commitments to maintain the payout.
In summary, while this list is a good place to start, it is recommended that you perform some additional analysis on whether projected earnings can cover a sustained dividend and other factors.
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