NEW YORK ( TheStreet) -- We have picked companies from diversified sectors like energy, financials, telecommunications and materials with high dividend yields of 5% to 22% and potential upside of 3% to 31% over the next 12 months. These companies posted strong results in the latest quarter and maximize returns to investors in the form of dividends and stock value. On average, these stocks have 52% buy rating and 46% hold rating.

Cascading negative news during the past couple of weeks has alerted investors to exercise great caution with their equity investments. Subsequent to the S&P's downgrade of U.S. credit rating, investors sought safe-haven investments and seem to favor high-yielding Real Estate Investment Trusts (REITs), which are considered reliable income sources. Essentially, these REITs are not taxed on their income but are required to pay 90% of their taxable income in the form of dividends.

Investors can look at these high-growth dividend stocks to navigate their portfolios though the current market volatility. As per data from Bloomberg, these stocks have recorded superior five-year dividend growth rates.

We have arranged these stocks in ascending order of dividend yields.

8. HCP ( HCP) is a real estate investment trust that invests in real estate serving the health care industry in the U.S. The company's portfolio consists of investments in five segments: senior housing, life science, medical office, post-acute/skilled nursing and hospital.

HCP paid a quarterly dividend of 48 cents per share on its common stock on Aug. 23, 2011 and declared cash dividends of 45.31 cents per share on its Series E cumulative redeemable preferred stock, and 44.38 cents per share on its Series F cumulative redeemable preferred stock. These dividends are payable on Sept. 30, 2011. Currently, HCP has a dividend yield of 5.2%. The five-year net growth rate for dividend per share stands at 2.4%.

For the quarter ended June 30, 2011, the company recorded 61.9% increase in revenue to $488.7 million from the year-ago quarter. Net income more than doubled to $222.9 million. Diluted funds from operations per share increased 42% to $0.78 from the year-ago quarter, while funds available for distribution increased 32% to 62 cents per share. The company has raised adjusted NOI same property performance guidance to 2.6% for the same period.

For full-year 2011, the company expects fund from operation (FFO) applicable to common shares to range between $2.48 and $2.54 per share from the earlier $2.47 to $2.53 per share. Meanwhile, net income per share guidance range was reaffirmed at $1.59 to $1.65. Also, full-year adjusted NOI Same Property Performance guidance was raised to a range of 3% to 4%.

Of the 20 analysts covering the stock, 20% recommend a buy and 80% suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining an average 6.9% to $37.00 in the upcoming 12 months.

7. Spectra Energy Partners, ( SEP) through its subsidiaries, engages in the transportation and gathering of natural gas through interstate pipeline systems. The company owns and operates over 3,100 miles of pipelines that serve the southeastern quadrant of the U.S.

The company announced that its board of directors declared a quarterly cash distribution to shareholders of 46.5 cents per share from the previous 46 cents per share, a 1.5% increase. The raised dividend was paid on Aug. 12, 2011 and equates to $1.86 per share on annual basis. This is the 15th consecutive quarter that the company has increased its quarterly cash distribution and has a current dividend yield of 5.6%. The one-year net growth rate for dividend per share stands at 9.3%.

The company reported second quarter 2011 net income of $37.6 million, increasing 13%, or 36 cents per limited partner unit from the year-ago quarter. For the quarter, cash available for distribution was $35.4 million, up 6% over the same quarter prior year. During the quarter, SEP invested $15.1 million in expansion and maintenance capital projects in its gas transportation and storage segment, and an additional $7 million in expansion projects at Market Hub Partners.

Of the 12 analysts covering the stock, 33% suggest a buy and 58% rate a hold. Analysts polled by Bloomberg foresee the stock gaining an average 22.2% to $33.33 in the upcoming 12 months.

6. Southern Copper ( SCCO) is an integrated copper producer engaged in the production of copper, molybdenum, zinc and silver. The company has mining, smelting and refining facilities in Peru and Mexico, and exploration projects in Chile.

In the last week of July, the company declared a quarterly dividend of 62 cents per share payable on Aug. 31, 2011. Currently, SCCO has a dividend yield of 5.9%. The company recently approved the extension of its share repurchase program for up to $1 billion. The five-year net growth rate for dividend per share stands at 7.4%.

For the second quarter of 2011, SCCO recorded net income of $658 million, or 78 cents per share, compared to $313.4 million, or 37 cents per share, in the year-ago quarter. For the quarter, sales were $1.8 billion, 54% higher than the prior-year quarter, resulting from higher metal prices and a 30.2% increase in copper sales volume. Copper mined production for the second quarter increased 28.8% to 146,241 tons. Capital expenditure for the quarter stood at $110.7 million.

For full-year 2011, the company expects copper production of 630,000 tons and pegs molybdenum production at 17,500 tons. Capital expenditure for the year is seen at $700 million, including maintenance capital expenditure of $200 million.

Of the 17 analysts covering the stock, 59% recommend a buy and 35% rate a hold. Analysts polled by Bloomberg foresee the stock gaining an average 30.7% to $40.52 in the upcoming 12 months.

5. Kinder Morgan Energy Partners ( KMP) is a pipeline transportation and energy storage company operating in five business segments: Products Pipelines, Natural Gas Pipelines, CO2, Terminals and Kinder Morgan Canada. The company owns interest in almost 28,000 miles of pipelines and 180 terminals.

For the second quarter of 2011, KMP increased its quarterly cash distribution per common unit to $1.15 ($4.6 annualized), rising 6% from the second quarter of 2010. The company has increased dividend distribution for six consecutive quarters and has a current dividend yield of 6.2%. The five-year net growth rate for dividend per share stands at 7.1%.

During the quarter, KMP reported 3% increase in revenues to $2.02 billion from the year-ago quarter. Cash and cash equivalents for the quarter more than doubled to $353 million from $129 million in same quarter prior year. Net income before certain items for the quarter increased 7% to $393.1 million from the corresponding quarter in 2010. The company foresees significant growth opportunities in the midstream energy sector, particularly natural gas shale plays and the coal export business.

For full-year 2011, the company expects to declare cash distribution of $4.60 per unit, or 4.5% higher than $4.40 per unit in 2010. Looking ahead, KMP estimates that each $1 change in the average WTI crude oil price per barrel would impact the CO2 segment by almost $5 million, or less than 0.2% of the company's combined business segments' anticipated earnings before DD&A.

Of the 17 analysts covering the stock, 29% recommend a buy and 65% rate a hold. Analysts polled by Bloomberg foresee the stock gaining an average 12.8% to $76.58 in the upcoming 12 months.

4. Linn Energy ( LINE) is an independent oil and natural gas company operating in five regions of the U.S. - Mid-Continent Deep, Mid-Continent Shallow, Permian Basin, Michigan and California.

Linn paid a quarterly cash dividend of 69 cents per share ($2.76 annualized) for the second quarter 2011, increasing 5% from 66 cents per share in the first quarter of 2011, and a 10% increase from the year-ago quarter. The company's chief executive said that the 5% increase reflects Linn's acquisition success, significant organic growth, and positive outlook for the future. With a current dividend yield of 6.7%, the company has a record of consistently paying 22 quarterly distributions that increased by almost 73% since the company's initial public offering. The five-year net growth rate for dividend per share stands at 30%.

For the second quarter of 2011, the company reported net income of $237.11 million, or $1.34 per share, compared to $59.79 million, or 41 cents per share, in the year-ago quarter. For the quarter, adjusted EBITDA increased 50.7% to $263.3 million from $174.9 million in the same quarter 2010. During the quarter, average daily production increased 40% to 358 MMcfe/d from the same period prior year.

The company estimates 2011 average coverage guidance of approximately 1.25 times, including the 5% distribution increase. With its organic growth program on track, Linn Energy expects to generate 30% growth year-over-year.

Of the 13 analysts covering the stock, 92% recommend a buy and the rest suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining an average 25.3% to $45.00 in the upcoming 12 months.

3. CenturyLink ( CTL) is an integrated communications company providing a range of services, including voice, Internet, data and video services. In addition, it also offers communications, professional and business information services in a few local and regional markets.

CenturyLink's board of directors recently approved a quarterly cash dividend of 72.5 cents per share payable on Sept. 16, 2011. Currently, the company has a dividend yield of 7.2%. The five-year net growth rate for dividend per share stands at 63.9%.

Operating revenue for the second quarter 2011 increased 148.6% to $4.4 billion from $1.8 billion in the year-ago quarter. Net income for the quarter stood at $262 million, or 44 cents per share. Operating cash flow, excluding special items, increased 107.7% to $1.9 billion from the second quarter of 2010.

For full-year 2011, the company expects pro forma operating revenue to come in the range of $18.5 to $18.8 billion from the earlier estimate of $17.6 to $17.8 billion. Meanwhile, pro forma diluted earnings per share are seen ranging between $1.5 and $1.6. Pro forma free cash flow is seen ranging from $3.4 to $3.6 billion, while pro forma operating cash flow is expected between $7.8 and $8 billion.

Of the 22 analysts covering the stock, 68% recommend a buy and the rest suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining an average 27.6% to $44.00 in the upcoming 12 months.

2. Annaly Capital Management ( NLY) owns, manages and finances a portfolio of real estate-related investments including mortgage pass-through certificates, collateralized mortgage obligations (CMOs), Agency callable debentures, and other securities representing interests in the obligations backed by pools of mortgage loans,

The company's board recently declared a Series A Preferred Stock cash dividend of 49.22 cents per share for the third quarter, payable Sept. 1, 2011. Also, for its Series B Preferred Stock, the company declared a cash dividend of 37.5 cents per share payable Sept. 30, 2011. Currently, Annaly has a dividend yield of 14.4%. The five-year net growth rate for dividend per share stands at 40.7%.

For the second quarter of 2011, the company reported GAAP net income of $120.8 million, or 14 cents per share, compared to a net loss of $218.2 million, or 40 cents per share in same quarter prior year. Net interest income for the quarter surged 56.5% to $843.7 million from $538.9 million in the year-ago quarter. Cash and cash equivalents were $401.8 million, up 22.5% from the comparable quarter previous year. Annualized return on average equity stood at 3.6% compared to an annualized loss on average equity of 9.03% for the second quarter of 2010.

Of the 21 analysts covering the stock, 71% recommend a buy and the rest suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining an average 3.3% to $18.88 in the upcoming 12 months.

1. Chimera Investment ( CIM) is a specialty finance company engaged in investing either directly or through its subsidiaries in residential mortgage-backed securities (RMBS), residential mortgage loans, commercial mortgage loans, real estate-related securities and various other asset classes.

For the second quarter 2011, the company declared and paid its common stock cash dividend of 13 cents. Currently, the company has a dividend yield of 22%.

Earnings for the second quarter of 2011 were $145.6 million, or 14 cents per average share, compared to $142.8 million, or 19 cents per average share, in the year-ago quarter. GAAP net income stood at $117.8 million, or 11 cents per average share. Net interest income for the quarter increased to $186.9 million from $155.4 million in second quarter 2010.

During the quarter, the company sold residential mortgage-backed securities with a carrying value of $16.4 million for realized losses of $380,000 as compared to no sales in the prior-year quarter. At the end of June 30, 2011, interest earning assets stood at $10.01 million, vs. $6.59 million as of June 30, 2010.

Of the 12 analysts covering the stock, 42% recommend a buy and the rest rate a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining an average 17.8% to $3.66 in the upcoming 12 months.

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