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Top 10 High-Yield Big-Cap Growth Picks

The growers on this list are cheap and steady, and they pay dividends.

Nobody wants volatility. But everyone wants capital appreciation, and if there's cash thrown in, all the better.

Large-cap and growth have been two ugly beasts over the past five years. But people need stability right now -- hence large-cap -- and growth has gotten so cheap that all the indices that track growth stocks have lower price-to-earnings ratios than the value indices. That's why I feel strongly that the winds are changing toward growth and large-cap.

However, let's play it safe and find the large-cap growth stocks that are most likely to succeed and then cement the deal with a nice steady dividend check every quarter. That way, if the market ever slips, it won't bring our friends with it. On Stockpickr, we've set up a portfolio of the

Highest-Yielding Large-Cap Growth Stocks


First on the list is

Telefonica of Argentina


, a Buenos Aires-based company that provides both business and residential telecommunications services throughout Argentina. The stock has an extremely high P/E ratio of 247; however, it yields 10% based on its latest annual dividend. Telefonica of Argentina has been paying dividends for 12 years. This is one of the stocks on the Stockpickr list of high-yield

Argentina Stocks


Telecom Italia


is another telecommunications company, this one based in Rome but with operations in both Europe and South America. Its P/E is a reasonable 10.7, and its P/E-to-growth ratio is 3.6. The stock carries an annual dividend rate of 7.4%.

To watch Gregg Greenberg's video take of this column, click here


We now move on to

Southern Copper


, a Phoenix-based mining company with operations in Peru, Mexico and Chile. Its P/E is 12, and it pays a yield of 6.9%. The stock has paid dividends quarterly for the past 10 years.

Another attractive feature of this stock is that it is a holding of both

Zweig Dimenna Partners


Pequot Capital Management

. Other top holdings of Pequot include

J.C. Penney

(JCP) - Get Free Report


Foster Wheeler



Finally, there's

United Utilities


, a company that provides electricity, water and wastewater services in the Northwestern part of England. It has a P/E of 32, but its yield is 6%. Dividends have been paid twice a year for the last eight years.

United Utilities has been added to the portfolio of

PowerShares Water Resources

(PHO), an exchange-traded fund that tracks the Palisades Water index, which invests in the common stocks of companies in the water industry. PHO has returned 17% over the last year. Among its other components are

Tetra Tech

(TTEK) - Get Free Report



(DHR) - Get Free Report


United Utilities also makes the Stockpickr list of

More High Yield Stocks You've Never Heard Of

. All this makes it not a bad play to consider.

For the rest of the top 10 large-cap growers that pay, check out the

Highest-Yielding Large-Cap Growth Stocks

portfolio on

At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.

James Altucher is president of Stockpickr LLC, a wholly owned subsidiary of and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs several quantitative-based hedge funds as well as a fund of hedge funds. He is also the author of

Trade Like a Hedge Fund


Trade Like Warren Buffett

. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;

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