We like high dividend stocks because they tend to outperform the market when everything is going down. In addition, we consider high dividend stocks as alternatives to 10-year Treasury bonds in this current low interest environment. We believe the recent downturn in the stock market has given defensive investors a great opportunity to add such high yielding stocks in their portfolios.
Below, we provided a list of 15 mega-cap US stocks with high dividend yields and low price-to-book ratios. The market data are sourced from Fidelity. All companies in this list have market capitalizations above $10 billion, annualized dividend yield of at least 3%, current P/E ratio lower than 15 and a price-to-book ratio of less than 1.5. Since the beginning of this year, these stocks returned -5.16 % vs. -3.52 % for the SPY.
Annaly Capital Management Inc. (NLY) owns, manages and finances a portfolio of real estate related investments. NLY has a 15.02% dividend yield and returned -1.74% since the beginning of this year. The stock has a price-to-book ratio of 1.01 and a P/E Ratio of 5.63. Bill Miller holds the largest NLY position among the 300-plus funds we are tracking.
CenturyLink Inc. (CTL) is a leading integrated communications company providing Internet services in the United States. CTL has an 8.65% dividend yield and lost -23.37% since the beginning of this year. The stock has a price-to-book ratio of 1.01 and a P/E Ratio of 14.21. Adage Capital holds more than $100 Million of CTL.
Entergy Corp. (ETR) is an integrated energy company engaged primarily in electric power production and retail electric distribution operations. ETR has a 4.98% dividend yield and lost -3.68% since the beginning of this year. The stock has a price-to-book ratio of 1.39 and a P/E Ratio of 9.50. Jean-Marie Eveillard had more than $150 Million in ETR at the end of June 2011.
Duke Energy Corp. (DUK) is a large energy company operating in the United States. DUK has a 4.94% dividend yield and gained 16.48% since the beginning of this year. The stock has a price-to-book ratio of 1.20 and a P/E Ratio of 13.16. Michael Messner and Israel Englander are the most prominent DUK investors.
American Electric Power Corp. (AEP) is an electric utility company that generates and distributes electric power to retail clients in the United States. AEP has a 4.77% dividend yield and gained 10.60% since the beginning of this year. The stock has a price-to-book ratio of 1.35 and a P/E Ratio of 12.90. John Levin has the largest AEP holding among the funds we track.
Xcel Energy (XEL) is a public utility company that provides electricity and natural gas delivery services in the United States. XEL has a 4.17% dividend yield and gained 7.98% since the beginning of this year. The stock has a price-to-book ratio of 1.48 and a P/E Ratio of 14.58. John A. Levin, Israel Englander and D.E. Shaw are among XEL investors.
ConocoPhillips (COP) is an energy company delivering various energy products worldwide. COP has a 3.94% dividend yield and returned 1.09% since the beginning of this year. The stock has a price-to-book ratio of 1.37 and a P/E Ratio of 8.43. Warren Buffett has a massive $2.7 billion worth holding in COP.
General Electric Co. (GE) is a large conglomerate providing technology, media and financial services worldwide. GE has a 3.72% dividend yield and lost -9.53% since the beginning of this year. The stock has a price-to-book ratio of 1.41 and a P/E Ratio of 12.61. Ken Fisher had nearly $600 Million in GE at the end of June.
Sempra Energy (SRE) is a US energy company supplying energy products and services worldwide. SRE has a 3.69% dividend yield and returned 1.45% since the beginning of this year. The stock has a price-to-book ratio of 1.37 and a P/E Ratio of 10.68. Phill Gross is the most prominent SRE investor.
Northrop Grumman Corp. (NOC) is a global company operating in aerospace, defense technology and electronics industries worldwide. NOC has a 3.66% dividend yield and lost -4.58% since the beginning of this year. The stock has a price-to-book ratio of 1.22 and a P/E Ratio of 8.56. Jean-Marie Eveillard holds more than $200 Million of NOC.
Blackrock Inc. (BLK) is a leading US investment management firm. BLK has a 3.54% dividend yield and lost -17.89% since the beginning of this year. The stock has a price-to-book ratio of 1.14 and a P/E Ratio of 12.64. John Paulson and Jonathon Jacobson are among BLK investors.
Edison International (EIX) is a US utilities company that generates and distributes electricity mainly in California. EIX has a 3.30% dividend yield and returned 2.58% since the beginning of this year. The stock has a price-to-book ratio of 1.18 and a P/E Ratio of 11.96. Steven Cohen holds the largest EIX position among the 300-plus funds we are tracking.
The Travelers Company (TRV) is a US company providing insurance services. TRV has a 3.21% dividend yield and lost -7.54% since the beginning of this year. The stock has a price-to-book ratio of 0.86 and a P/E Ratio of 10.02. Mason Hawkins had nearly $900 Million in TRV at the end of June 2011.
JP Morgan Chase & Co. (JPM) is a leading financial services firm operating worldwide. JPM has a 3.10% dividend yield and lost -22.21% since the beginning of this year. The stock has a price-to-book ratio of 0.74 and a P/E Ratio of 6.90. Jonathon Jacobson, Lee Ainslie and Andreas Halvorsen are the most prominent JPM investors.
Carnival Corporation (CCL) is a global company that operates cruise ships and provides vacation services to its clients. CCL has a 3.04% dividend yield and lost -27.23% since the beginning of this year. The stock has a price-to-book ratio of 1.09 and a P/E Ratio of 13.44. Jonathon Jacobson holds more than $100 Million of CCL.
