The Latest on the Highest Dividend Yields in the Market

Welcome to the fifth issue of The Big Dividend Report!

For new readers, in this series my aim is to check under the hood of the biggest dividends in the market and to keep you updated on the latest and greatest. We will limit ourselves to the biggest 20 dividend yields coming from companies with at least $2 billion in market cap.

In our first go-round, we looked at the payout ratio, the most fundamental metric to check for dividend health. In our second report, we looked at recent price movements in this volatile market. In our third report, we looked at recent news for the mortgage REIT industry. And our fourth report highlighted possible opportunities in foreign telecom.

Let's take a look at where those same 20 companies stand today.



Dividend Yield

American Capital Agency (Nasdaq: AGNC  ) Real Estate 20.5%                                                   
Chimera (NYSE: CIM  ) Real Estate 17.3%                                                  
Hatteras Financial Real Estate 15.8%                                                  
Annaly Capital (NYSE: NLY  ) Real Estate 14.4%                                                  
MFA Financial Real Estate 14.3%                                                 
Portugal Telecom Telecommunication Services 12.7%                                                   
Cheniere Energy Partners LP (AMEX: CQP  ) Energy 12.4%                                                   
Frontier Communications Telecommunication Services 12.2%                                                  
Inergy, L.P. (NYSE: NRGY  ) Energy 11.1%                                                   
Terra Nitrogen, L.P. (NYSE: TNH  ) Materials 10.4%                                                     
Cellcom Israel Telecommunication Services 10.2%                                                   
BP Prudhoe Bay Royalty Trust Energy 10.0%                                                     
Veolia Environnement Utilities 9.8%                                                   
YPF Energy 9.7%                                                     
Southern Copper Materials 9.5%                                                     
Pengrowth Energy Energy 9.0%                                                     
Nokia (NYSE: NOK  ) Information Technology 8.7%                                                     
CenturyLink Telecommunication Services 8.6%                                                     
Windstream Telecommunication Services 8.4%                                                     
Hospitality Properties Trust Real Estate 8.3%                                                     

Source: Yahoo! Finance and Capital IQ, a division of Standard & Poor's.

The first thing we see in the table is American Capital Agency breaking the 20% dividend yield threshold on a slightly falling stock price. Get a summary of the latest news and trends facing the mortgage REITS (the first five companies in the table).

Another big dividend area of the market is master limited partnerships, or MLPs, of which Cheniere Energy Partners, Inergy, and Terra Nitrogen count themselves. As fellow Fool Dan Caplinger explains, "Master limited partnerships let companies in the natural resources industry structure their businesses to achieve tax advantages over ordinary corporations." In a recent piece, he takes a look at the possibility of more onerous short-term taxation and concludes that even if MLPs were ever taxed like regular corporations, investors wouldn't be hurt much, if at all, in the long run.

Finally, we had some news earlier this week from Nokia, which is cutting another 3,500 jobs under the stress of tough competition in the smartphone market. Its first smartphones using Microsoft Windows as the operating system are due out later this year. The operating system replaces its homegrown Symbian OS as Nokia tries to stay relevant against stiff competition from Android-based phones and the iPhone.

This ends our fifth issue of The Big Dividend Report. To keep track of all our analysis on any of these companies, including future issues of The Big Dividend Report, add them to My Watchlist.

Anand Chokkavelu owns shares of Frontier Communications and Apple. You can follow his thoughts on Twitter. The Motley Fool owns shares of Veolia Environnement, Annaly Capital Management, Google, Chimera Investment, and Apple. Motley Fool newsletter services have recommended buying shares of Apple, Cellcom Israel, and Google, as well as creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (2) | Recommend This Article (18)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 02, 2011, at 10:28 PM, shoebsky wrote:

    Why is there no 4 percent dividend mutual fund, for a near retiree or in retirement stock portion of Portfolio? Whe I go to the library, there are old timers searching thru value line looking for good 4% and over dividend payers. Yet there is no cheap Mutual fund that mimics this. It would seem to me to be the first mutual fund. and the most useful reason to have a fund. It would save tons of hours that all these people are spending, just because there is no product?

  • Report this Comment On October 03, 2011, at 4:32 PM, crimley wrote:

    CIM acts like it could be going out of business and they're owned and presumably managed by the same people - NLY !!

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