Market Overview

Big Caps, Big Yields: These Stocks Yield Over 7 Percent

In a search for yield in a low interest rate environment, Benzinga went looking for large-cap stocks with market capitalizations between $10 billion and $200 billion which are yielding over 7 percent. Below, we highlight four names that meet this criteria.

American Capital Agency (NASDAQ: AGNC): This company operates as a Real Estate Investment Trust (REIT) and invests on a leveraged basis in agency mortgage-backed securities. While that sounds scary, American Capital shareholders have done extremely well in the wake of the financial crisis.

Shares of American Capital are up more than 71 percent since May 2008 and have risen 22 percent in 2012. Not only are investors benefiting from capital gains, but the company is also yielding over 14 percent at current levels.

Century Link (NYSE: CTL): This communications company, known for its telephone and internet services, has a solid and stable business line. The stock is also yielding a little more than 7 percent at current levels. Year-to-date, Century Link shares have added more than 7 percent and the stock has been in a persistent uptrend over the last month.

In an environment where the 10-Year note is yielding around 1.50 percent, this stock is a good alternative to fixed income for investors who can handle a little bit of risk.

Energy Transfer Partners (NYSE: ETP): This company is organized as a Master Limited Partnership or MLP, a class of securities that have performed tremendously in recent years. The company passes income derived from its operations in the energy industry on to investors.

Year-to-date, Energy Transfer Partners has lost around 2 percent, in part because of falling crude oil prices in recent months. At current levels, Energy Transfer Partners is yielding almost 8 percent.

Seadrill Ltd. (NYSE: SDRL): This company is a contract offshore driller in the oil and gas industry.

Seadrill has a market cap of nearly $17 billion and yields over 9 percent at current levels. Year-to-date, Seadrill is up 6 percent, but the stock has come off of its best levels as crude oil has tumbled from above $100 in recent months.

Posted-In: Dividend Plays large cap stocks Master Limited Partnership mortgage backed securties offshore drilling REITLong Ideas Dividends Technicals Markets Trading Ideas Best of Benzinga

 

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