Some High Dividend Paying Stocks For A Weak Market (MO, MRK, JNJ, NLY)

Investors are experiencing some volatile times right now, with nearly every headline out of Japan moving the market sharply higher or lower. Dividends are important to juice yields and returns, as well as being an important source of income for many, especially retirees.

Here is a list of a few low-risk, high dividend stocks that investors can sleep soundly at night.

Altria MO is a low-risk, large-cap stock that sports a hefty 6.1% dividend yield. Altria is the largest tobacco manufacturer in the country, with Marlboro being its dominant brand.

Altria reported EPS growth in January of 12.8% over last year, thanks in part to revenue from financial services, which saw revenues double in 2010 from 2009 levels.

The company said that it expects to earn anywhere between $2.01 and $2.07 per share, reflecting year-on-year growth of 6% - 9% from adjusted earnings of $1.90 per share delivered in fiscal 2010.

Merck MRK is another low-risk defensive play, as the company recently finished its acquisition of Schering-Plough. Between the two companies, the cost cuts will be tremendous, through overlapping synergies, and research & development cuts. It will also give Merck access to new potential blockbuster drugs in its pipeline.

Merck sports a 4.7% yield, and is trading at a ridiculously low multiple of 8 times 2011 earnings. Merck is yielding far more than a 10 year Treasury, and given the market uncertainty, now may be a time to look at Merck shares.

Johnson & Johnson JNJ, is another low-risk, high dividend payer. The New Brunswick-based company is the maker of things like Band-Aids, Tylenol, and other products we use everyday, but don't really think about it. J&J has had its problems recently, having the FDA take over a couple of its Tylenol plants for safety measures, but the comapny is fiscally safe.

JNJ boasts a triple-A credit rating from Standard & Poor's, a distinction shared by only three other U.S. industrial firms. It trades at just 11.3 times 2011 earnings, and sports a 3.7% yield.

Another company to consider is Annaly Capital Management, Inc. NLY. Annaly has a yield of 14.30%, or $2.56 per share.

Annaly Capital Management is is a real estate investment trust, that invests primarily in AAA paper. The company is trading at 7.65 times 2011 earnings, and is trading around 1 times book value. Major shareholders of Annaly are Allianz Global Investors of America, BlackRock, Clearbridge Advisors and Waddell and Reed Financial.

The last name to consider is PDL BioPharma Inc. PDLI. PDL yields 10.8% dividend yield or 60 cents per share. The company trades under 4 times earnings.

PDL BioPharma, Inc. engages in the management of antibody humanization patents and royalty assets, which consist of Queen et al. patents and license agreements with various biotechnology and pharmaceutical companies.