Is the uncertainty over the debt ceiling and a possible default driving investors into dividend-paying stocks?  Sure looks that way.  

The telecom sector, known for its rich dividend payouts, is leading the market’s advance today by a very wide margin, with all 6 telecom stocks in the S&P 500 trading higher  Also, the three highest-yielding stocks in the S&P – Windstream Holdings, Frontier Communications, and CenturyLink – are telecoms.  

Below is a list of the 20 stocks in the S&P 500 with the highest dividend yields.  As a group they are up 1% today, more than triple the advance in the S&P.

Ticker

Security

Div. Yield

(WIN)

Windstream Holdings, Inc.

12.33%

(FTR)

Frontier Communications Corp.

9.35%

(CTL)

CenturyLink, Inc.

6.88%

(FE)

FirstEnergy Corp.

5.92%

(POM)

Pepco Holdings, Inc.

5.90%

(MO)

Altria Group, Inc.

5.53%

(TE)

TECO Energy, Inc.

5.34%

(T)

AT&T Inc.

5.29%

(HCP)

HCP, Inc.

5.27%

(ETR)

Entergy Corporation

5.23%

(RAI)

Reynolds American Inc.

5.11%

(SO)

The Southern Company

5.01%

(TEG)

Integrys Energy Group, Inc.

4.97%

(HCN)

Health Care REIT, Inc.

4.93%

(PPL)

PPL Corporation

4.90%

(LO)

Lorillard, Inc.

4.87%

(DRI)

Darden Restaurants, Inc.

4.79%

(DUK)

Duke Energy Corporation

4.70%

(AEE)

Ameren Corporation

4.67%

(KMI)

Kinder Morgan, Inc.

4.57%