AT&T Inc. (T), Merck & Co., Inc. (MRK) & Verizon Communications Inc. (VZ): Hedge Fund Manager Cliff Asness’s +3.5% Yielders

Verizon Communications Inc. (NYSE:VZ) was another of Asness’s high yield picks, with the filing disclosing ownership of 2.4 million shares. As with AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ) is highly insulated from movements in broader market indices and returns considerable cash to shareholders through dividends (the yield is 4.1%). Verizon is currently speculated to be seeking to acquire Vodafone Group Plc (ADR) (NYSE:VOD)’s minority stake in Verizon Communications Inc. (NYSE:VZ) Wireless to give it 100% ownership of the highly valuable asset. Renaissance Technologies, whose founder Jim Simons is now a billionaire, was another major shareholder of Verizon at the end of December (check out Renaissance’s stock picks).

AQR owned 1.1 million shares of Philip Morris International Inc. (NYSE:PM) per the 13F. Cigarette companies tend to generate considerable cash flow, and Philip Morris (which was formed when the old Philip Morris was split; this company concentrates on international operations while Altria Group Inc (NYSE:MO) markets the brand’s products in the U.S.) is no exception with a dividend yield of 3.5%. Some other cigarette companies pay higher yields, though in theory the international focus gives Philip Morris more growth prospects. D.E. Shaw, managed by billionaire David Shaw, increased its stake to almost 3 million shares.

Disclosure: I own no shares of any stocks mentioned in this article.