In this article, we discuss 10 cheap dividend stocks with over 6% yield. You can skip our discussion on dividend stock investing, and go directly to read 5 Cheap Dividend Stocks with Over 6% Yield.
According to research conducted by Fidelity, dividend stocks performed well during the inflationary periods in the past. In the 1940s and 1970s, dividends represented 65% and 71% of the S&P 500’s returns, respectively. The report further mentioned that the stocks that reduced or cut their dividends have underperformed the market historically by 20% to 25%. Some of the best dividend stocks that have a proven history of dividend growth include The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and Exxon Mobil Corporation (NYSE:XOM).
However, in this article, we will focus on cheap dividend stocks with over 6% yield.
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Our Methodology:
For this article we picked some solid dividend stocks with over 6% yield. All these stocks are priced under $30, as of the close of June 26.
Cheap Dividend Stocks with Over 6% Yield
10. Kinder Morgan, Inc. (NYSE:KMI)
Dividend Yield as of June 26: 6.74%
Share Price as of June 26: $16.48
Kinder Morgan, Inc. (NYSE:KMI) is an energy infrastructure company that owns oil and gas pipelines in North America. In May, the company announced an expansion project that will enhance natural gas deliveries and pipeline capacity by nearly 570 cf per day.
In April, Kinder Morgan, Inc. (NYSE:KMI) declared a quarterly dividend of $0.275 per share, a 2.8% hike from its previous dividend. The company has been raising its dividends consecutively for the five years and since 2018, it has raised its annual dividend by 113.46%. The stock’s dividend yield came in at 6.74%, as of June 26. In May, Truist initiated its coverage of Kinder Morgan, Inc. (NYSE:KMI) with a Buy rating and a $22 price target, as the firm highlighted the growing demand for natural gas.
At the end of Q1 2022, 40 hedge funds in Insider Monkey’s database owned stakes in Kinder Morgan, Inc. (NYSE:KMI), up from 39 in the previous quarter. The consolidated value of these stakes is over $1.34 billion. FPR Partners held the largest position in the company, with stakes valued at $307.3 million.
Just like famous stocks, such as The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and Exxon Mobil Corporation (NYSE:XOM), Kinder Morgan, Inc. (NYSE:KMI) is also considered a safe dividend stock due to its dividend policy.
9. ASE Technology Holding Co., Ltd. (NYSE:ASX)
Dividend Yield as of June 26: 7.63%
Share Price as of June 26: $6.28
ASE Technology Holding Co., Ltd. (NYSE:ASX) is a Taiwan-based engineering services company that also provides test manufacturing services. In May, the company reported its revenue at $1.82 billion, up 7.8% from the previous month. Moreover, its ATM revenues for the month amounted to $1.07 billion.
ASE Technology Holding Co., Ltd. (NYSE:ASX) currently pays an annual dividend of $0.30 per share, with a dividend yield of 7.63%, as of June 26. Though the stock’s payouts are comparatively less in amount, the analysts are positive about its future dividend growth.
In Q1, Ken Fisher’s Fisher Asset Management owned over 25.6 million shares in ASE Technology Holding Co., Ltd. (NYSE:ASX), worth over $182.1 million, becoming the company’s largest shareholder. Overall, 9 hedge funds in Insider Money’s database were bullish on the company in Q1, owning stakes worth over $236.3 million.
8. Brandywine Realty Trust (NYSE:BDN)
Dividend Yield as of June 26: 7.73%
Share Price as of June 26: $9.83
Brandywine Realty Trust (NYSE:BDN) is a Philadelphia-based real estate investment trust that mainly invests in office buildings. In Q1 2022, the company delivered solid results, with its FFO standing at $0.35, which beat market estimates by $0.01. Its revenue of $127.5 million saw a 5.6% year-over-year growth and also surpassed consensus by $1.06 million. Moreover, the company’s rental market-to-market rate grew by 20.4% from the same period last year.
In June, Credit Suisse initiated its coverage of Brandywine Realty Trust (NYSE:BDN) with a Neutral rating and a $10 price target. The firm expressed concerns about the company’s earnings but remained positive about its occupancy rates.
Brandywine Realty Trust (NYSE:BDN) hasn’t raised its dividend for the past 15 quarters and currently offers a quarterly payout of $0.19 per share. The stock’s dividend yield stands at its 10-year high at 7.73%, as of the close of June 26.
As per Insider Monkey’s Q1 2022 database, 16 hedge funds owned stakes in Brandywine Realty Trust (NYSE:BDN), up from 15 in the previous quarter. The consolidated value of these stakes is over $90.7 million.
7. Dynex Capital, Inc. (NYSE:DX)
Dividend Yield as of June 26: 9.73%
Share Price as of June 26: $16.04
Dynex Capital, Inc. (NYSE:DX) is a Virginia-based real estate investment trust that invests in mortgage-based securities on a leveraged basis. Though the company failed to meet analysts’ estimates in its Q1 earnings, its net interest income of $15.6 million saw a 28.2% year-over-year growth.
Dynex Capital, Inc. (NYSE:DX) pays monthly dividends to shareholders and it currently offers a monthly payout of $0.13 per share. The management had to cut its dividend by 13% in 2020 due to the pandemic but sustained its payouts over this period. The stock’s dividend yield came in at 9.73%, as of June 26.
In June, Keefe Bruyette upgraded Dynex Capital, Inc. (NYSE:DX) to Outperform, with an $18.75 price target, up from $17. The firm presented a positive outlook on mortgage-based securities.
At the end of Q1 2022, 6 hedge funds tracked by Insider Monkey reported owning stakes in Dynex Capital, Inc. (NYSE:DX), up from 4 in the previous quarter. The collective value of these stakes is nearly $19 million. Among these hedge funds, Balyasny Asset Management held the largest position in the company in Q1, with stakes valued at over $11.6 million.
6. MPLX LP (NYSE:MPLX)
Dividend Yield as of June 26: 9.77%
Share Price as of June 26: $28.86
MPLX LP (NYSE:MPLX) is an Ohio-based master limited partnership that operates midstream energy infrastructure and related assets. In May, the company announced the expansion of its Whistler gas pipeline in Texas, which will increase the mainline capacity to 2.5 billion cf per day.
In Q1 2022, MPLX LP (NYSE:MPLX) reported a GAAP EPS of $0.78, which beat estimates by $0.02. The company’s revenue for the quarter came in at $2.61 billion, experiencing an 11.5% year-over-year growth and also surpassing consensus by $160 million. Moreover, its Gathering and Processing segment’s revenue grew to $297 million in Q1, from $251 million recorded during the same period last year.
MPLX LP (NYSE:MPLX) maintains a 9-year track record of consistent dividend growth, with a 5-year CAGR of 6%. The company currently offers a quarterly dividend of $0.705 per share, with a dividend yield of 9.77%, as of the close of June 26. In May, Truist initiated its coverage of MPLX LP (NYSE:MPLX) with a Buy rating and a $37 price target.
According to Insider Monkey’s Q1 2022 database, 8 hedge funds held stakes in MPLX LP (NYSE:MPLX), the same as in the previous quarter. These stakes hold a combined value of over $58.7 million. Henry Breck and Ken Griffin were the company’s prominent shareholders in Q1.
In addition to prominent dividend stocks, such as The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and Exxon Mobil Corporation (NYSE:XOM), MPLX is also grabbing the attention of income investors and analysts.
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Disclosure. None. 10 Cheap Dividend Stocks with Over 6% Yield is originally published on Insider Monkey.
