This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

15 Cheap High-Dividend Stocks for Defensive Investors

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( Insider Monkey) -- We like high-dividend stocks because they tend to outperform the market when everything else 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 provide a list of 15 mega-cap U.S 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, an annualized dividend yield of at least 3%, a 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 (NLY - Get Report) 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. Among the 300+ hedge funds we track, Bill Miller had the largest NLY position at the end of the second quarter.

CenturyLink (CTL - Get Report) 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 held more than $100 Million of CTL in Q2 2011.

Entergy (ETR - Get Report) 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 (DUK - Get Report) 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 were the most prominent DUK investors in Q2.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AEP $65.39 0.00%
COP $43.41 0.00%
CTL $30.96 0.00%
ETR $76.99 0.00%
DUK $80.02 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs