15 Cheap High Dividend Stocks for Defensive Investors

We like high dividend stocks because they tend to outperform the market when everything 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.

Annaly Capital Management, Inc. (NYSE:NLY)

Below, we provided a list of 15 mega-cap US 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, annualized dividend yield of at least 3%, 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 Inc. (NLY) 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. Bill Miller holds the largest NLY position among the 300-plus funds we are tracking.

CenturyLink Inc. (CTL) 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 holds more than $100 Million of CTL.

Entergy Corp. (ETR) 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 Corp. (DUK) 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 are the most prominent DUK investors.

American Electric Power Corp. (AEP) is an electric utility company that generates and distributes electric power to retail clients in the United States. AEP has a 4.77% dividend yield and gained 10.60% since the beginning of this year. The stock has a price-to-book ratio of 1.35 and a P/E Ratio of 12.90. John Levin has the largest AEP holding among the funds we track.

Xcel Energy (XEL) is a public utility company that provides electricity and natural gas delivery services in the United States. XEL has a 4.17% dividend yield and gained 7.98% since the beginning of this year. The stock has a price-to-book ratio of 1.48 and a P/E Ratio of 14.58. John A. Levin, Israel Englander and D.E. Shaw are among XEL investors.

ConocoPhillips (COP) is an energy company delivering various energy products worldwide. COP has a 3.94% dividend yield and returned 1.09% since the beginning of this year. The stock has a price-to-book ratio of 1.37 and a P/E Ratio of 8.43. Warren Buffett has a massive $2.7 billion worth holding in COP.

General Electric Co. (GE) is a large conglomerate providing technology, media and financial services worldwide. GE has a 3.72% dividend yield and lost -9.53% since the beginning of this year. The stock has a price-to-book ratio of 1.41 and a P/E Ratio of 12.61. Ken Fisher had nearly $600 Million in GE at the end of June.

Sempra Energy (SRE) is a US energy company supplying energy products and services worldwide. SRE has a 3.69% dividend yield and returned 1.45% since the beginning of this year. The stock has a price-to-book ratio of 1.37 and a P/E Ratio of 10.68. Phill Gross is the most prominent SRE investor.

Northrop Grumman Corp. (NOC) is a global company operating in aerospace, defense technology and electronics industries worldwide. NOC has a 3.66% dividend yield and lost -4.58% since the beginning of this year. The stock has a price-to-book ratio of 1.22 and a P/E Ratio of 8.56. Jean-Marie Eveillard holds more than $200 Million of NOC.

Blackrock Inc. (BLK) is a leading US investment management firm. BLK has a 3.54% dividend yield and lost -17.89% since the beginning of this year. The stock has a price-to-book ratio of 1.14 and a P/E Ratio of 12.64. John Paulson and Jonathon Jacobson are among BLK investors.

Edison International (EIX) is a US utilities company that generates and distributes electricity mainly in California. EIX has a 3.30% dividend yield and returned 2.58% since the beginning of this year. The stock has a price-to-book ratio of 1.18 and a P/E Ratio of 11.96. Steven Cohen holds the largest EIX position among the 300-plus funds we are tracking.

The Travelers Company (TRV) is a US company providing insurance services. TRV has a 3.21% dividend yield and lost -7.54% since the beginning of this year. The stock has a price-to-book ratio of 0.86 and a P/E Ratio of 10.02. Mason Hawkins had nearly $900 Million in TRV at the end of June 2011.

JP Morgan Chase & Co. (JPM) is a leading financial services firm operating worldwide. JPM has a 3.10% dividend yield and lost -22.21% since the beginning of this year. The stock has a price-to-book ratio of 0.74 and a P/E Ratio of 6.90. Jonathon Jacobson, Lee Ainslie and Andreas Halvorsen are the most prominent JPM investors.

Carnival Corporation (CCL) is a global company that operates cruise ships and provides vacation services to its clients. CCL has a 3.04% dividend yield and lost -27.23% since the beginning of this year. The stock has a price-to-book ratio of 1.09 and a P/E Ratio of 13.44. Jonathon Jacobson holds more than $100 Million of CCL.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!