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13 High-Yield Large Caps From The S&P 500 Stock Index

Despite all the hand-wringing over the beginning of the Federal Reserve interest rate increases, the fact of the matter is they will start small, stay small and happen at a very slow pace. 

In fact, most Wall Street strategists predict that by the end of 2017, the fed funds rate will only be 2% at the very most. It could be even lower if economic growth slows down between now and then. 

With that scenario very likely, solid stocks with a big yield will remain in demand. I screened the S&P 500 index for large cap, blue chip stocks that paid a 5% dividend. 

As of now, 13 stocks pay such a high yield of which 5 have also a low forward P/E and 8 a buy or better rating.

A major worry for many yield-hungry investors is that when the Federal Reserve begins raising the federal funds rate, market prices for any yield-producing investment can come under pressure. 

When interest rates rise, the value of an existing bond or preferred stock must adjust itself lower so it has the same yield as a similarly rated new security.

A good advice from me is to avoid stocks with high debt leverage like REITs. Those stocks are living from an interest margin that could be destroyed.


Here are the large cap high-yields from the S&P 500...


Kinder Morgan -- Yield: 8.40%

Kinder Morgan (NYSE:KMI) employs 11,535 people, generates revenue of $16,226.00 million and has a net income of $2,443.00 million. The current market capitalization stands at $54.21 billion.

Kinder Morgan’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,764.00 million. The EBITDA margin is 41.69% (the operating margin is 27.41% and the net profit margin 15.06%).

Financials: The total debt represents 51.55% of Kinder Morgan assets and the total debt in relation to the equity amounts to 125.64%. Due to the financial situation, a return on equity of 4.35% was realized by Kinder Morgan.

Twelve trailing months earnings per share reached a value of $0.52. Last fiscal year, Kinder Morgan paid $1.74 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 45.22, the P/S ratio is 3.34 and the P/B ratio is finally 1.52. The dividend yield amounts to 8.40%.

Stock Charts:


Long-Term Stock Price Chart of Kinder Morgan (KMI)
Long-Term Stock Price Chart of Kinder Morgan (KMI)
Long-Term Dividend Payment History of Kinder Morgan (KMI)
Long-Term Dividend Payment History of Kinder Morgan (KMI)
Long-Term Dividend Yield History of Kinder Morgan (KMI)
Long-Term Dividend Yield History of Kinder Morgan (KMI)



Williams Companies -- Yield: 6.72%

Williams Companies (NYSE:WMB) employs 6,742 people, generates revenue of $7,637.00 million and has a net income of $2,335.00 million. The current market capitalization stands at $28.57 billion.

Williams Companies’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,745.00 million. The EBITDA margin is 35.94% (the operating margin is 20.54% and the net profit margin 30.57%).

Financials: The total debt represents 42.90% of Williams Companies assets and the total debt in relation to the equity amounts to 247.12%. Due to the financial situation, a return on equity of 30.94% was realized by Williams Companies.

Twelve trailing months earnings per share reached a value of $0.45. Last fiscal year, Williams Companies paid $1.40 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 84.22, the P/S ratio is 3.74 and the P/B ratio is finally 3.24. The dividend yield amounts to 6.72%.

Stock Charts:


Long-Term Stock Price Chart of Williams Companies (WMB)
Long-Term Stock Price Chart of Williams Companies (WMB)
Long-Term Dividend Payment History of Williams Companies (WMB)
Long-Term Dividend Payment History of Williams Companies (WMB)
Long-Term Dividend Yield History of Williams Companies (WMB)
Long-Term Dividend Yield History of Williams Companies (WMB)



AT&T -- Yield: 5.61%

AT&T (NYSE:T) employs 281,240 people, generates revenue of $132,447.00 million and has a net income of $6,518.00 million. The current market capitalization stands at $206.34 billion.

AT&T’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $32,139.00 million. The EBITDA margin is 24.27% (the operating margin is 8.87% and the net profit margin 4.92%).

Financials: The total debt represents 27.61% of AT&T assets and the total debt in relation to the equity amounts to 91.47%. Due to the financial situation, a return on equity of 6.89% was realized by AT&T.

Twelve trailing months earnings per share reached a value of $0.86. Last fiscal year, AT&T paid $1.84 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 39.25, the P/S ratio is 1.56 and the P/B ratio is finally 1.94. The dividend yield amounts to 5.61%.

Stock Charts:


Long-Term Stock Price Chart of AT&T (T)
Long-Term Stock Price Chart of AT&T (T)
Long-Term Dividend Payment History of AT&T (T)
Long-Term Dividend Payment History of AT&T (T)
Long-Term Dividend Yield History of AT&T (T)
Long-Term Dividend Yield History of AT&T (T)



Welltower -- Yield: 5.54%

Welltower (NYSE:HCN) employs 438 people, generates revenue of $3,343.55 million and has a net income of $385.48 million. The current market capitalization stands at $21.08 billion.

Welltower’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,717.44 million. The EBITDA margin is 51.37% (the operating margin is 25.83% and the net profit margin 11.53%).

Financials: The total debt represents 43.29% of Welltower assets and the total debt in relation to the equity amounts to 82.19%. Due to the financial situation, a return on equity of 2.59% was realized by Welltower.

Twelve trailing months earnings per share reached a value of $1.49. Last fiscal year, Welltower paid $3.18 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 40.61, the P/S ratio is 6.30 and the P/B ratio is finally 1.61. The dividend yield amounts to 5.54%.

Stock Charts:


Long-Term Stock Price Chart of Welltower (HCN)
Long-Term Stock Price Chart of Welltower (HCN)
Long-Term Dividend Payment History of Welltower (HCN)
Long-Term Dividend Payment History of Welltower (HCN)
Long-Term Dividend Yield History of Welltower (HCN)
Long-Term Dividend Yield History of Welltower (HCN)



ConocoPhillips -- Yield: 5.43%

ConocoPhillips (NYSE:COP) employs 17,800 people, generates revenue of $52,366.00 million and has a net income of $5,807.00 million. The current market capitalization stands at $67.26 billion.

ConocoPhillips’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16,158.00 million. The EBITDA margin is 30.86% (the operating margin is 14.09% and the net profit margin 11.09%).

Financials: The total debt represents 19.36% of ConocoPhillips assets and the total debt in relation to the equity amounts to 43.47%. Due to the financial situation, a return on equity of 11.03% was realized by ConocoPhillips.

Twelve trailing months earnings per share reached a value of $-0.82. Last fiscal year, ConocoPhillips paid $2.84 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is , the P/S ratio is 1.28 and the P/B ratio is finally 1.29. The dividend yield amounts to 5.43%.

Stock Charts:


Long-Term Stock Price Chart of ConocoPhillips (COP)
Long-Term Stock Price Chart of ConocoPhillips (COP)
Long-Term Dividend Payment History of ConocoPhillips (COP)
Long-Term Dividend Payment History of ConocoPhillips (COP)
Long-Term Dividend Yield History of ConocoPhillips (COP)
Long-Term Dividend Yield History of ConocoPhillips (COP)



Spectra Energy -- Yield: 5.38%

Spectra Energy (NYSE:SE) employs 5,900 people, generates revenue of $5,903.00 million and has a net income of $1,283.00 million. The current market capitalization stands at $18.47 billion.

Spectra Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,794.00 million. The EBITDA margin is 47.33% (the operating margin is 32.59% and the net profit margin 21.73%).

Financials: The total debt represents 43.12% of Spectra Energy assets and the total debt in relation to the equity amounts to 174.38%. Due to the financial situation, a return on equity of 12.99% was realized by Spectra Energy.

Twelve trailing months earnings per share reached a value of $1.15. Last fiscal year, Spectra Energy paid $1.38 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.68, the P/S ratio is 3.13 and the P/B ratio is finally 2.26. The dividend yield amounts to 5.38%.

Stock Charts:


Long-Term Stock Price Chart of Spectra Energy (SE)
Long-Term Stock Price Chart of Spectra Energy (SE)
Long-Term Dividend Payment History of Spectra Energy (SE)
Long-Term Dividend Payment History of Spectra Energy (SE)
Long-Term Dividend Yield History of Spectra Energy (SE)
Long-Term Dividend Yield History of Spectra Energy (SE)



Reynolds American -- Yield: 2.92%

Reynolds American (NYSE:RAI) employs 5,300 people, generates revenue of $8,471.00 million and has a net income of $1,445.00 million. The current market capitalization stands at $65.61 billion.

Reynolds American’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,637.00 million. The EBITDA margin is 31.13% (the operating margin is 29.88% and the net profit margin 17.06%).

Financials: The total debt represents 33.45% of Reynolds American assets and the total debt in relation to the equity amounts to 112.41%. Due to the financial situation, a return on equity of 29.83% was realized by Reynolds American.

Twelve trailing months earnings per share reached a value of $2.65. Last fiscal year, Reynolds American paid $1.34 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.38, the P/S ratio is 7.75 and the P/B ratio is finally 10.79. The dividend yield amounts to 2.92%.

Stock Charts:


Long-Term Stock Price Chart of Reynolds American (RAI)
Long-Term Stock Price Chart of Reynolds American (RAI)
Long-Term Dividend Payment History of Reynolds American (RAI)
Long-Term Dividend Payment History of Reynolds American (RAI)
Long-Term Dividend Yield History of Reynolds American (RAI)
Long-Term Dividend Yield History of Reynolds American (RAI)


13 High-Yield Large Caps From The S&P 500 Stock Index (click to enlarge)

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