Defensive investors like high dividend yielding stocks and consider them as viable options especially in inflationary environments. We are concerned about the Fed’s inflationary monetary policy and therefore we recommend the investors to play defensively by purchasing high quality dividend stocks.
Below we compiled a list of 20 high dividend stocks with upside. All companies have dividend yield higher than 4% and average analyst recommendation is lower than 2.5, which means buy or better. The market data is sourced from Finviz. We picked the top 20 stocks with the largest market cap.
AT&T, Inc. (T): AT & T is a large telecommunications company providing telephone, internet and TV services. T has a dividend yield of 5.98% and returned 3.71% since the beginning of this year. The mean recommendation score of the analysts is 2.2. It has a market cap of $170B and a P/E ratio of 8.72. Jim Simons had nearly $100 million invested in T shares.
Pfizer Inc. (PFE): Pfizer is a research-based, global biopharmaceutical company. PFE has a dividend yield of 4.24% and returned 11.08% since the beginning of this year. The mean recommendation score of the analysts is 1.8. It has a market cap of $147B and a P/E ratio of 17.62. David Einhorn and Ken Fisher both had over $400 million invested in PFE stocks.
Philip Morris International, Inc. (PM): Philip Morris International is engaged in the manufacture and sale of cigarettes and other tobacco products. PM has a dividend yield of 4.72% and returned 15.13% since the beginning of this year. The mean recommendation score of the analysts is 2.1 this week. It has a market cap of $115B and a P/E ratio of 14.94. Jim Simons and D. E. Shaw also both had nearly $200 million of PM.
Merck & Co. Inc. (MRK): Merck is a global health care company. MRK has a dividend yield of 4.76% and lost 8.30% since the beginning of this year. The mean recommendation score of the analysts is 2.0 this week. It has a market cap of $98.4B and a P/E ratio of 23.14. Ric Dillon had $173 million invested in MRK.
Bristol-Myers Squibb Company (BMY): Bristol-Myers Squibb Company is engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of pharmaceutical products on a global basis. BMY has a dividend yield of 4.00% and returned 30.43% since the beginning of this year. The mean recommendation score of the analysts is 2.1 this week. It has a market cap of $56.2B and a P/E ratio of 17.17. Jim Simons had over $200 million invested in BMY shares.
Enterprise Products Partners LP (EPD): Enterprise is a North American midstream energy company. EPD has a dividend yield of 5.71% and returned 6.14% since the beginning of this year. The mean recommendation score of the analysts is 1.7. It has a market cap of $37.1B and a P/E ratio of 26.99. John Osterweis had $69 million invested in EPD.
Exelon Corp. (EXC): Exelon is a utility services holding company. EXC has a dividend yield of 4.99 % and returned 5.01% since the beginning of this year. The mean recommendation score of the analysts is 2.2. It has a market cap of $27.9B and a P/E ratio of 10.52. Steven Cohen invested $60 million in EXC shares (Steven Cohen’s top stock picks).
NextEra Energy, Inc. (NEE): NextEra Energy is an electric power company in North America and the United States. NEE has a dividend yield of 4.02% and returned 8.54% since the beginning of this year. The mean recommendation score of the analysts is 2.2 this week. It has a market cap of $23.1B and a P/E ratio of 12.48. Adage Capital invested $67 million in NEE stocks.
Reynolds American Inc. (RAI): Reynolds American produces cigarettes and smokeless tobacco products. RAI has a dividend yield of 5.40% and returned 25.81% since the beginning of this year. The mean recommendation score of the analysts is 2.3. It has a market cap of $22.9B and a P/E ratio of 17.08. David Winters and Jim Simons both had over $40 million invested in RAI.
Southern Copper Corp. (SCCO): SCC is an integrated copper producer. SCCO has a dividend yield of 8.13% and lost 42.01% since the beginning of this year. The mean recommendation score of the analysts is 2.4. It has a market cap of $22.8B and a P/E ratio of 11.46. Jim Simons had $56 million invested in SCCO.
