Where Should Savers Turn for Dividends?

In the current financial environment, it is becoming harder for savers to receive a decent return on their money.  Due to the Federal Reserve’s zero interest rate policy, returns on money market accounts and CDs are a joke.  Even more troublesome, the Fed has guaranteed record low interest rates till at least mid-2013.  Last month, Charles Evans, president of the Chicago Fed, also said that rates could be held lower past the mid-2013 commitment.

With investors seeking yield, more emphasis has been placed on strong equities that pay a juicy dividend.  Investment group, BESPOKE, has compiled a list of the top 39 companies in the S&P 500 (NYSEARCA:SPY) that pay a dividend of at least 4%.  Furthermore, to reduce the chance of an artificial high yield due to a steep price decline, BESPOKE limited the list to stocks that have fallen less than 10% year-to-date.

Here are the 39 stocks that made the cut, in order by the highest yield:

AT&T (NYSE:T)  5.95%
Altria Group (NYSE:MO)  5.78%
Health Care REIT Inc. (NYSE:HCN)  5.76%
Cincinnati Financial (NASDAQ:CINF)  5.58%
Pepco Holdings Inc. (NYSE:POM)  5.49%
Reynolds American (NYSE:RAI)  5.44%
Integrys Energy Group (NYSE:TEG)  5.33%
Verizon Communications (NYSE:VZ)  5.3%
Eli Lilly & Co. (NYSE:LLY)  5.24%
Lockheed Martin Corp (NYSE:LMT)  5.11%
HCP Inc. (NYSE:HCP)  5.04%
Leggett & Platt Inc. (NYSE:LEG)  4.97%
FirstEnergy Corp (NYSE:FE)  4.95%
Ameren Corp (NYSE:AEE)  4.90%
Exelon Corp (NYSE:EXC)  4.85%
Duke Energy Corp (NYSE:DUK)  4.84%
American Electric Power (NYSE:AEP)  4.77%
Entergy Corp (NYSE:ETR)  4.75%
Merck & Co Inc (NYSE:MRK)  4.73%
PPL Corp (NYSE:PPL)  4.71%
Lorillard Inc. (NYSE:LO)  4.69%
TECO Energy Inc. (NYSE:TE)  4.65%
Progress Energy Inc. (NYSE:PGN)  4.62%
Plum Creek Timber Co Inc. (NYSE:PCL)  4.60%
DTE Energy Co. (NYSE:DTE)  4.52%
Pinnacle West Capital Corp (NYSE:PNW)  4.50%
SCANA Corp (NYSE:SCG)  4.49%
Paychex Inc. (NASDAQ:PAYX)  4.40%
NYSE Euronext (NYSE:NYX)  4.33%
Southern Co (NYSE:SO)  4.30%
Public Service Enterprise (NYSE:PEG)  4.23%
Consolidated Edison Inc. (NYSE:ED)  4.08%
Philip Morris International (NYSE:PM)  4.07%
NiSource Inc. (NYSE:NI)  4.05%
H&R Block Inc. (NYSE:HRB)  4.04%
CMS Energy Corp (NYSE:CMS)  4.02%
Xcel Energy Inc. (NYSE:XEL)  4.01%
CenterPoint Energy Inc. (NYSE:CNP)  4.01%
Bristol-Myers Squibb Co. (NYSE:BMY)  4.0%

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