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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