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More Bang For Your Buck: 6 Top Stocks With Big Yields

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I ncome investors like the predictability of a dividend stock -- most of the time, they can count on a steady yield regardless of the stock's price performance.

So, if the dividend stock outperforms the market, it's like getting a bonus.

These six stocks from Tuesday's Dividend Leaders list are beating the market both in terms of yield and stock action.

Reynolds American ( RAI ), which is building a flat base with a potential 49.66 buy point, has rallied more than 40% this year while the S&P 500 is flat. The Camel cigarette maker's annualized yield of 3.2% also tops the S&P 500's average 2.12% payout.

McDonald's ( MCD ), up about 25% for the year, recently reclaimed a 114.06 buy point of a three-week-tight pattern. It's also well extended from a flat base cleared in early October. The burger chain, which has raised its dividend every year since it first payout in 1976, offers a 3.1% yield.

Maxim Integrated Products ( MXIM ), up nearly 20% year to date, is crafting a flat base. The chipmaker's sales have slowed the past five quarters, but earnings growth resumed in fiscal Q1 ended in September. Maxim pays a quarterly dividend of 40 cents a share, or $1.20 for the year, for a 3.2% annualized yield.

Altria Group ( MO ) is also working on the bottom of what is so far shaping up to be a flat base. Shares of the Marlboro maker have advanced about 17% this year. Tobacco companies tend to pay high dividends, and Altria is no exception, with an annual payout of 3.9%.

Paychex ( PAYX ) has gained around 15% YTD and has pulled back near a 51.82 buy point and its 10-week moving average. The provider of payroll and related services offers a 3.2% yield. Analysts expect EPS to rise 9% on 7% higher sales when it reports Dec. 22.

Lockheed Martin (LMT), up about 12% this year, has also pulled back to its 10-week line and a recent buy point at 213.44. The F-35 jet maker pays an annual dividend of 3%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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