5 Outperforming Large Cap Stocks to Round Out Your Income Investing Portfolio

After looking at small and mid cap stocks this week - it's time to turn our attention to outperforming large caps.

As the year winds down we've been breaking the market into segments to look for some of the year's best performers. After looking at small and mid cap stocks earlier this week, we come to large caps.

With large cap stocks in particular, dividend yields are an important indicator of how good the company has been at sharing its profits over the years. So we started off our screen by looking at stocks with high dividend yields above 3%.

Then to narrow it down further, we only wanted to include stocks that have outperformed in 2013. So we looked at stocks that are trading above their 200-day simple moving averages (SMA).

The SMA simply adds together the closing price from the last 200 days and divides by 200. It's one way of getting a rough approximation of a stock's average price for a given time period. It can often be more reliable than the 52-week high, because the figure itself is much less volatile. And if a stock is rallying above its 200-day moving average, this could indicate strong upward momentum in the near future.

Oil and utility stocks often have high dividends - so it's no surprise to see a number of energy and telecom stocks come through our screen, many of them with a history of raising their payouts each year. One firm, Ensco plc (ESV), has already increased their dividend twice this year. Some analysts think the company has excellent growth prospects, as it controls the world's largest fleet of ultra-deep-water rigs, and the second largest fleet in general. 

Meanwhile utility stock National Grid plc (NGG) has the highest dividend in its sector. The company used 2013 to focus on cutting costs, and has a regulated asset base that's expected to grow 6% for the year. 

Our screen left us with five dividend-paying large cap stocks. Will they continue to outperform next year?

Click on the interactive chart below to view dividend yields over time.

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Do you see investing opportunities in these outperforming large cap stocks? Use the list below to begin your analysis. 

 

1. BCE, Inc. (BCE, Earnings, Analysts, Financials): Provides wireless communications services, Internet access, data services, and video services to residential, business, and wholesale customers in Canada. Market cap at $34.01B, most recent closing price at $43.99.

Currently priced 0.8% above the stocks 200-day SMA.

 

2. Ensco plc (ESV, Earnings, Analysts, Financials): Provides offshore contract drilling services to the oil and gas industry. Market cap at $13.76B, most recent closing price at $59.26.

Currently priced 3.29% above the stocks 200-day SMA.

 

3. Energy Transfer Partners LP (ETP, Earnings, Analysts, Financials): Engages in the manufacture and sale of cigarettes, smokeless products, and wine in the United States and internationally. Market cap at $74.89B, most recent closing price at $37.32.

Currently priced 6.60% above the stocks 200-day SMA.

 

4. Altria Group Inc. (MO, Earnings, Analysts, Financials): Engages in the manufacture and sale of cigarettes, smokeless products, and wine in the United States and internationally. Market cap at $74.89B, most recent closing price at $37.32.

Currently priced 6.60% above the stocks 200-day SMA.

 

5. National Grid plc (NGG, Earnings, Analysts, Financials): Operates regulated electricity and gas infrastructure networks in the United Kingdom and northeastern United States. Market cap at $45.49B, most recent closing price at $61.59.

Currently priced 5.33% above the stocks 200-day SMA.

 

 

(List compiled by James Dennin. Dividend yields sourced from Zacks Investment Research, all other data sourced from Finviz.)

Analyze These Ideas: Getting Started

Read descriptions for all companies mentioned Access a performance overview for all stocks in the list Compare analyst ratings for the companies mentioned Compare analyst ratings to annual returns for stocks mentioned Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)

Dig Deeper: Access Company Snapshots, Charts, Filings

BCE, Inc.(BCE, Chart, Download SEC Filings) Ensco plc(ESV, Chart, Download SEC Filings) Energy Transfer Partners LP(ETP, Chart, Download SEC Filings) Altria Group Inc.(MO, Chart, Download SEC Filings) National Grid plc(NGG, Chart, Download SEC Filings)

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