14 High Yield Large Caps with Steady Dividends

by Darwin on August 6, 2009

In an effort to highlight the dearth of available blue chip organizations with high market capitalization providing investors with a high yield dividend payout 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 8/6/09.  The following table is sorted by highest yield stocks first.

Note that in today’s low interest rate environment, beating 2.5% on a CD/Savings Account (see Ally Bank Review as they offer the highest yields around) is unlikely and following a recent market rally exceeding 40% from the March lows, capital appreciation is anything but guaranteed as well.  A sustained 5% yield held over a long period of time (regardless of share price movement, as long as dividend payout is steady or growing) will virtually guarantee that your portfolio outpaces inflation and may very well exceed the major market indices as well if the market moves sideways or downward from here.  This high yield large cap picture used to look different with Financials comprising a larger portion of the best dividend stocks, but with recent TARP requirements and liquidity conservation efforts, most large financial institutions had to cut their dividends substantially (and their market caps have experience “shrinkage”).

High Yield Large Cap Stocks List

Symbol     Company                               Market Cap    Div/Yld

FTE          FRANCE TELECOM                    66.19B                   8.00%
VOD         VODAFONE                                   111.42B                  7.40%
MO            ALTRIA GROUP                         36.27B                   7.30%
BP              BP PLC                                            160.91B                  6.50%
T                AT&T INC.                                    151.81B                 6.20%
DT             DEUTSCHE TELECOM           55.16B                   6.00%
TOT          TOTAL S.A.                                   123.43B               5.80%
VZ            VERIZON COMMUN                 88.83B                  5.80%
BMY        BRISTOL-MYERS SQUIBB    43.09B                  5.70%
LLY         LILLY ELI                                        39.87B                  5.60%
DD            DU PONT                                       28.99B                   5.10%
MRK        MERCK                                           62.44B                   5.10%
PUK         PRUDENTIAL                             40.33B                   5.00%

If you’re going to be buying high yield stocks to hang on to dividends, you might as well reduce your costs as well.  It’s easy to establish a low cost relationship with an online broker.  I recommend Zecco given their incredible pricing: Get 10 free stock trades every month with $25,000 balance or 25 trades each month $4.50 otherwise.

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{ 3 trackbacks }

Weekly Dividend Investing Roundup – August 8, 2009 | The Dividend Guy Blog
August 8, 2009 at 7:03 am
Dividend Tree Potpourri – August 9, 2009 | Dividend Tree
August 9, 2009 at 10:56 pm
August 20, 2009 at 11:32 pm

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