The Latest on the Highest Dividend Yields in the Market

Welcome to the sixth 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. Our fourth report highlighted possible opportunities in foreign telecom. And our fifth report focused on master limited partnerships and Nokia news.

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

Company

Sector

Dividend Yield

American Capital Agency (Nasdaq: AGNC  ) Real Estate 21.0%                                                  
Chimera (NYSE: CIM  ) Real Estate 19.5%                                                  
Hatteras Financial (NYSE: HTS  ) Real Estate 16.6%                                                 
MFA Financial (NYSE: MFA  ) Real Estate 15.9%                                                 
Annaly Capital (NYSE: NLY  ) Real Estate 15.5%                                                  
Portugal Telecom Telecommunication Services 13.3%                                                  
Cheniere Energy Partners LP Energy 13.0%                                                  
Frontier Communications (NYSE: FTR  ) Telecommunication Services 12.8%                                                  
Inergy, L.P. Energy 12.2%                                                  
Cellcom Israel Telecommunication Services 10.9%                                                  
Veolia Environnement Utilities 10.4%                                                   
Terra Nitrogen Company, L.P. Materials 10.0%                                                    
BP Prudhoe Bay Royalty Trust Energy 9.9%                                                     
Southern Copper Materials 9.5%                                                    
YPF S.A. Energy 9.4%                                                    
Pengrowth Energy Corporation Energy 9.3%                                                     
Windstream Telecommunication Services 8.9%                                                    
CenturyLink (NYSE: CTL  ) Telecommunication Services 8.8%                                                    
Hospitality Properties Trust Real Estate 8.8%                                                    
Nokia Information Technology 8.3%                                                    

Sources: Yahoo! Finance and S&P Capital IQ.

As of Friday's close, four of the five mortgage REITs on our list (Chimera, Hatteras, MFA, and Annaly) were trading closer to their 52-week lows than their 52-week highs. Surprisingly, the biggest yielder of all, American Capital Agency, is trading closer to 52-week highs (as stock prices go down, yields go up).

Now, to be clear, the price volatility of these stocks has been quite low versus the market. That said, what's been troubling investors recently is the fear of evolving SEC regulations. This Barron's piece gives a good overview of what's going on. It gives a helpful rundown of why the SEC is focused a bit more on the mortgage REITs these days and gives some positive words from Annaly CEO Mike Farrell.  

Outside the mREITs, let's talk Frontier Communications. Last week, I bumped it against two other high dividend players (Annaly and Altria) in five categories. Although it didn't win, I do think Frontier is a stock to look into given its depressed stock price.

Staying in the telecom sector, I'll point you to an excellent series one of my fellow Fools, Dan Caplinger, writes. Last week, he took a look at CenturyLink and how close to perfection it comes. It's a good place to start your research on a company, in this case CenturyLink.

This ends our sixth issue of The Big Dividend Report. Things should get interesting as we head into earnings season! To keep track of all our analysis on any of these companies, including future issues of The Big Dividend Report, click here to add them to MyWatchlist.

Anand Chokkavelu owns shares of Frontier Communications and Altria. You can follow his thoughts on Twitter. The Motley Fool owns shares of Veolia Environnement, Annaly Capital Management, Chimera Investment, and Altria. Motley Fool newsletter services have recommended buying shares of Cellcom Israel. 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.


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Related Tickers

4/24/2014 11:22 AM
AGNC $22.48 Up +0.10 +0.42%
American Capital A… CAPS Rating: ****
CIM $3.11 Down +0.00 +0.00%
Chimera Investment CAPS Rating: ***
CTL $34.70 Up +0.09 +0.25%
CenturyLink, Inc. CAPS Rating: ***
FTR $5.96 Up +0.06 +1.02%
Frontier Communica… CAPS Rating: ***
HTS $19.70 Down -0.03 -0.15%
Hatteras Financial CAPS Rating: ****
MFA $7.95 Down -0.01 -0.13%
MFA Financial, Inc… CAPS Rating: *****
NLY $11.43 Up +0.03 +0.22%
Annaly Capital Man… CAPS Rating: ***

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