Investing

The Highest-Yielding Dividends That Are Safe to Hold

6. American Electric Power
> Dividend yield: 4.5%
> Annualized dividend: $1.96
> Share price: $43.72
> P/E ratio: 13.9

American Electric Power Co. Inc. (NYSE: AEP) is a diverse electric power utility operator. The company has been extremely shareholder-friendly when it comes to lobbying in Washington, D.C. Its market value is $21 billion and it comes with a healthy dividend yield of 4.5%. Trading at $43.72, its 52-week range is $40.56 to $51.60 and its consensus price target is up at $49.35.

ALSO READ: America’s Richest and Poorest States

7. ConocoPhillips
> Dividend yield: 3.9%
> Annualized dividend: $2.79
> Share price: $70.04
> P/E ratio: 11.9

ConocoPhillips (NYSE: COP) is now well past its spin-off of Phillips 66 (NYSE: PSX) and is the king of oil and gas companies when it comes to pure dividends. Its market value is more than $85 billion and it pays investors a current dividend yield of 3.9%. At $70.04, it is trading close to the consensus analyst price target of $70.54. It is also close to the top of its 52-week range of $53.95 to $71.09. Its current year P/E ratio is 11.9, and what really stands out is that the 3.9% dividend yield represents only 48% of earnings.

8. Intel
> Dividend yield: 3.9%
> Annualized dividend: $0.90
> Share price: $22.83
> P/E ratio: 12.2

Intel Corp. (NASDAQ: INTC) is the world’s leader in semiconductor processors and also the leader in technology dividends with a 3.9% yield. Currently trading at $22.83, its consensus analyst price target is $23.69, its 52-week trading range is $19.23 to $25.98, and its market cap is close to $114 billion. This $0.90 dividend per share comes to a payout ratio of about 48% of earnings. The processor giant may have even become a great stealth value stock if several recent analysts estimates are accurate. Intel’s P/E ratio is fairly low at 12.2.

9. Eli Lilly
> Dividend yield: 3.9%
> Annualized dividend: $1.96
> Share price: $50.67
> P/E ratio: 12.2

Eli Lilly and Co. (NYSE: LLY) is the highest-paying safe pharmaceutical dividend, with a 3.9% yield. Currently trading at $50.67, it has a market cap is close to $55 billion, a 52-week range of $44.88 to $58.40 and a consensus analyst price target up at $57.56. Because earnings estimates are fluctuating wildly for 2013 ($4.14 EPS) versus 2014 ($2.77 EPS) and from 2012 ($3.39 EPS), we are using the 2014 calculation for the payout: a $1.96 annualized payout is about 71% of earnings.

ALSO READ: 12 Things To Do (and Not to Do) If You Win The Lottery

10. Merck
> Dividend yield: 3.6%
> Annualized dividend: $1.72
> Share price: $48.74
> P/E ratio: 14.0

Merck & Co. Inc. (NYSE: MRK) is another safe dividend in pharmaceuticals, with a 3.6% dividend yield. The drug giant is worth more than $142 billion. Merck’s share price of $48.74 compares to a consensus analyst target of $51.79 and a 52-week range of $40.02 to $50.16. The $1.72 annualized dividend is only about 49% of earnings and the company has an expected P/E ratio of 14.

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.