Income investors looking for large companies paying high yields don't have to look far. Twenty of the stocks in the Dow Jones Industrial Average pay yields of 2% or more, and five of them have yields of 4% and higher.
AT&T Inc. (T), which is at the top of the list, has a yield of 6.4%, and carries a forward price to earnings ratio of 11. The company pays out over $9.9 billion in annual dividends which is extremely well covered by the company's operating cash flow of over $34 billion.
Verizon Communications Inc. (VZ) yields 6.2%, and has a forward PE ratio of 12. Verizon's dividend payouts of $5.6 billion are also very well covered by the $31.5 billion in operating cash flow.
E.I. du Pont de Nemours (DD) pays a yield of 4.3% and has a forward PE of 14.5.
Pfizer, Inc. (PFE) has a yield of 4.2% with a forward PE of 7.6.
Merck & Company, Inc. (MRK) yields 4% and has a forward PE of 10.
If you like high yield stocks, you should check out the lists of high yield electric utility stocks and high yield gas utility stocks at WallStreetNewsNetwork.com.
Author owns T, VZ, and PFE.