Top 10 High-Yield Big-Cap Growth Picks

The growers on this list are cheap and steady, and they pay dividends.
Author:
Publish date:

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

(TAR)

, 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

(TI.A)

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

(PCU)

, 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

and

Pequot Capital Management

. Other top holdings of Pequot include

J.C. Penney

(JCP) - Get Report

and

Foster Wheeler

(FWLT)

.

Finally, there's

United Utilities

(UU)

, 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 Report

and

Danaher

(DHR) - Get 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 Stockpickr.com.

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 TheStreet.com 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

and

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;

click here

to send him an email.

TheStreet.com has a revenue-sharing relationship with Trader's Library under which it receives a portion of the revenue from purchases by customers directed there from TheStreet.com.