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Large-cap stocks are a staple in nearly every portfolio. They’re well-established in nature, have more analyst coverage, and are highly liquid, all of which are significant advantages contributing to their popularity among investors.
And, of course, many large-caps reward their shareholders with dividends, providing another beneficial advantage.
For those interested in reaping an income from their investments, three large-cap stocks – Energy Transfer (ET - Free Report) , Altria Group (MO - Free Report) , and Prudential Financial (PRU - Free Report) – could all be considerations.
Below is a chart illustrating the year-to-date performance of all three stocks, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
All three stocks currently yield over 5% annually and have witnessed positive earnings estimate revisions, undoubtedly a strong pairing. Let’s take a closer look at each one.
Prudential Financial
A leader in financial services, Prudential Financial, offers various products and services, including life insurance, annuities, retirement-related services, and more. Presently, PRU is a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
PRU’s annual dividend yield currently sits at 5.1%, more than double its Zacks Finance sector average. In addition, the company’s 51% payout ratio resides on the sustainable side.
Image Source: Zacks Investment Research
The company’s bottom line looks to expand nicely, with estimates for its current fiscal year indicating a 28% jump in earnings. And in FY24, estimates allude to a further 5% of growth.
Image Source: Zacks Investment Research
Energy Transfer
Energy Transfer owns and operates diversified portfolios of energy assets primarily in the United States. Currently, ET sports a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
It’s nearly impossible to ignore Energy Transfer’s dividend metrics; the company’s annual dividend currently stands tall at 9.4%, nowhere near the Zacks Oils and Energy sector average.
While the yield is undoubtedly impressive, it’s important to remember that it’s vulnerable to a change in business conditions.
Image Source: Zacks Investment Research
Altria Group
Altria Group is a world-leading producer and marketer of cigarettes, tobacco, and similar products. Like the stocks above, MO sports a Zacks Rank #2 (Buy), seeing its earnings outlook drift higher across all timeframes.
Image Source: Zacks Investment Research
Altria rewards its shareholders handsomely; its annual dividend currently yields 8%, well above the Zacks Consumer Staples sector average.
Impressively, the company has grown its payout by more than 5% over the last five years.
Image Source: Zacks Investment Research
In addition, MO’s valuation multiples don’t appear expensive, with its 9.3X forward earnings multiple sitting below its 10.5X five-year median and Zacks sector average.
Image Source: Zacks Investment Research
Bottom Line
Investors should be aware that high yields can be unsustainable from a long-term perspective and typically get cut when business isn’t as fruitful, perhaps steering away income investors that prefer reliability.
When looking for dividend reliability, Dividend Aristocrats are a great option. A few Dividend Aristocrats that sport a favorable Zacks Rank include Archer Daniels Midland (ADM - Free Report) and Coca-Cola (KO - Free Report) .
Still, all three stocks above – Energy Transfer (ET - Free Report) , Altria Group (MO - Free Report) , and Prudential Financial (PRU - Free Report) – currently carry annual dividend yields greater than 5%, making them valid considerations for investors looking to stack cash quickly.
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3 Large-Cap Stocks With Big Dividend Yields
Large-cap stocks are a staple in nearly every portfolio. They’re well-established in nature, have more analyst coverage, and are highly liquid, all of which are significant advantages contributing to their popularity among investors.
And, of course, many large-caps reward their shareholders with dividends, providing another beneficial advantage.
For those interested in reaping an income from their investments, three large-cap stocks – Energy Transfer (ET - Free Report) , Altria Group (MO - Free Report) , and Prudential Financial (PRU - Free Report) – could all be considerations.
Below is a chart illustrating the year-to-date performance of all three stocks, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
All three stocks currently yield over 5% annually and have witnessed positive earnings estimate revisions, undoubtedly a strong pairing. Let’s take a closer look at each one.
Prudential Financial
A leader in financial services, Prudential Financial, offers various products and services, including life insurance, annuities, retirement-related services, and more. Presently, PRU is a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
PRU’s annual dividend yield currently sits at 5.1%, more than double its Zacks Finance sector average. In addition, the company’s 51% payout ratio resides on the sustainable side.
Image Source: Zacks Investment Research
The company’s bottom line looks to expand nicely, with estimates for its current fiscal year indicating a 28% jump in earnings. And in FY24, estimates allude to a further 5% of growth.
Image Source: Zacks Investment Research
Energy Transfer
Energy Transfer owns and operates diversified portfolios of energy assets primarily in the United States. Currently, ET sports a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
It’s nearly impossible to ignore Energy Transfer’s dividend metrics; the company’s annual dividend currently stands tall at 9.4%, nowhere near the Zacks Oils and Energy sector average.
While the yield is undoubtedly impressive, it’s important to remember that it’s vulnerable to a change in business conditions.
Image Source: Zacks Investment Research
Altria Group
Altria Group is a world-leading producer and marketer of cigarettes, tobacco, and similar products. Like the stocks above, MO sports a Zacks Rank #2 (Buy), seeing its earnings outlook drift higher across all timeframes.
Image Source: Zacks Investment Research
Altria rewards its shareholders handsomely; its annual dividend currently yields 8%, well above the Zacks Consumer Staples sector average.
Impressively, the company has grown its payout by more than 5% over the last five years.
Image Source: Zacks Investment Research
In addition, MO’s valuation multiples don’t appear expensive, with its 9.3X forward earnings multiple sitting below its 10.5X five-year median and Zacks sector average.
Image Source: Zacks Investment Research
Bottom Line
Investors should be aware that high yields can be unsustainable from a long-term perspective and typically get cut when business isn’t as fruitful, perhaps steering away income investors that prefer reliability.
When looking for dividend reliability, Dividend Aristocrats are a great option. A few Dividend Aristocrats that sport a favorable Zacks Rank include Archer Daniels Midland (ADM - Free Report) and Coca-Cola (KO - Free Report) .
Still, all three stocks above – Energy Transfer (ET - Free Report) , Altria Group (MO - Free Report) , and Prudential Financial (PRU - Free Report) – currently carry annual dividend yields greater than 5%, making them valid considerations for investors looking to stack cash quickly.