5 Undervalued Large-Cap Stocks To Buy In 2023 With Dividend Yields Over 5%

A high dividend yield appeals to every stock investor, particularly if the company in question trades at a discounted price with respect to its earnings potential.

Benzinga has reviewed the top five U.S. stocks with more than $50 billion of market cap, a dividend yield of at least 5% over the previous year and a forward price-to-earnings ratio below 10x. 

5) Citigroup Inc. C

• Over the past year, Citigroup shareholders received a dividend yield of 5.62%, and the stock now trades at a price that is 7.9 times the company's expected profits for the next year (NTM P/E).
• Last year, the bank had a payout ratio of 33.7%, meaning that it paid out dividends equal to a third of its net income.
• The price of a Citigroup share has increased by 1% so far this year and by 8% in the last six months. Shares of the company fell 22% in the fiscal year 2022.
• Wall Street analysts see significant upside potential for Citigroup, with an average price objective 24% higher than the stock's current price.
• The next quarterly earnings release for Citigroup will be on April 14, 2023.

Read Also: Citigroup Stock, Analyst Ratings, Price Targets, Predictions 

4) Verizon Communication Inc. VZ

• Verizon stockholders have received a dividend yield of 6.71% over the last year, and the company is presently trading at a price that is 8.2 times its projected profits for the future year (NTM P/E). 
• Verizon had a payout ratio of 50.83%, which means it distributed dividends equal to half of its net income. 
• The company's share price has dropped 3% year to date and 1% in the last six months. In fiscal year 2022, shares of the wireless operator lost 20% of their value. 
• Analysts on Wall Street believe Verizon has significant upside potential, with an average price target 19% higher than the stock's current price. 
• Verizon's next quarterly earnings report will be issued on April 25, 2023.

3) Enterprise Products Partners L.P. EPD

• For the past year, Enterprise Products Partners L.P.'s shareholders received a dividend yield of 7.41%, and the company is currently trading at a price that is 10 times its projected profits for the coming year (NTM P/E). 
• The energy firm had a payout ratio of 74.59%, implying that it paid out dividends equal to three-quarters of its net income. 
• The share price of the pipeline company has increased 5.6% so far in 2023 and 6.8% in the previous six months. EPD shares increased 18% in fiscal year 2022. 
• Wall Street analysts expect substantial upside potential for this stock, with an average price objective that is 23% higher than the stock's current price. 
• The next quarterly earnings report for Enterprise Products Partners will be released on April 28, 2023.

2) EOG Resources, Inc. EOG

• EOG Resources' stockholders obtained a dividend yield of 7.8% during the past year, and the stock is presently selling at a price that is 9.1 times its predicted profits for the following year (NTM P/E). 
• The petroleum company's current payout ratio for the past twelve months is 66.35%, which means that it paid out dividends equal to roughly two-thirds of its net income. 
• The share price has dropped 13% year to date, but it's flat in the six-month period. In fiscal year 2022, EOG shares skyrocketed by 57%. 
• Wall Street analysts believe EOG Resources has enormous upside potential, with an average price target 32% higher than the stock's current price. 
• The next quarterly earnings report for EOG Resources will be on May 5, 2023.

1) Pioneer Natural Resources Company PXD

• Pioneer Natural Resources' shareholders gained an astonishing dividend yield of 13.2% over the last twelve months, and the company is presently trading at a price that is 8.9 times its projected earnings for the following year (NTM P/E). 
• The energy firm had a payout ratio of 79%, which means that it paid out dividends more than three-quarters of its net income. 
• The share price of the company is down 11% year to date and 6.5% lower over the past six months. It gained 39% in fiscal year 2022. 
• Analysts on Wall Street believe Pioneer Natural Resources still has very strong upside potential, with an average price target 38% higher than the stock's current price. 
• The next quarterly earnings report for Pioneer Natural Resources will be released on May 4, 2023.

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