In this article, we discuss 10 dividend stocks with over 10% yield. If you want to skip our detailed analysis of these stocks, go directly to 5 Dividend Stocks with Over 10% Yield.
Dividend stocks have decidedly become an effective hedge amid the turbulent stock market, with inflationary pressures, rising interest rates, and now the Ukraine war. According to Mad Money host Jim Cramer, although the stock market will remain “bumpy” for the foreseeable future until the Ukraine-Russia conflict reaches an amicable conclusion, it is high time to search for high quality stocks that have been beaten down to “ridiculously cheap” levels. Amid geopolitical and Fed mandated recession, it is important to fall back on tangible money in the form of dividends, according to Cramer, and the broad market sell-off has resulted in low stock prices and absurdly high yields.
Jack Ablin, Cresset Capital founding partner and CIO joined ‘TechCheck’, telling investors to focus on earnings growth and dividend yields, and he remains bullish on energy, financials, and cyclical stocks, as they will benefit over the next 5 years.
Some of the most notable dividend stocks that investors and elite hedge funds support include Johnson & Johnson (NYSE:JNJ), Pfizer Inc. (NYSE:PFE), and Exxon Mobil Corporation (NYSE:XOM), among others discussed at length below.
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Our Methodology
After a detailed assessment of dividend paying companies, we selected stocks that yield over 10%. We have mentioned the business fundamentals, hedge fund sentiment, and available analyst ratings for each company, to give investors a better insight into the stocks.
Dividend Stocks with Over 10% Yield
10. VOC Energy Trust (NYSE:VOC)
Number of Hedge Fund Holders: 2
Dividend Yield as of March 2: 10.00%
VOC Energy Trust (NYSE:VOC) is a statutory trust managed by The Bank of New York Mellon Corporation (NYSE:BK), that receives net profit proceeds from the production and sale of oil and natural gas properties in the states of Kansas and Texas. VOC Energy Trust (NYSE:VOC) was incorporated in 2010 and is based in Houston, Texas.
On January 21, VOC Energy Trust (NYSE:VOC) declared a $0.25 per share quarterly dividend, a 56.3% increase from its prior dividend of $0.16. The dividend was paid on February 14, to shareholders of record on February 1. The stock yields 10% as of March 2.
According to the Q4 database of Insider Monkey, Renaissance Technologies and Arrowstreet Capital were bullish on VOC Energy Trust (NYSE:VOC), with combined stakes worth $1.79 million.
In addition to Johnson & Johnson (NYSE:JNJ), Pfizer Inc. (NYSE:PFE), and Exxon Mobil Corporation (NYSE:XOM), VOC Energy Trust (NYSE:VOC) is a notable dividend stock to diversify an income portfolio.
9. FLEX LNG Ltd. (NYSE:FLNG)
Number of Hedge Fund Holders: 2
Dividend Yield as of March 2: 10.06%
FLEX LNG Ltd. (NYSE:FLNG) is a Bermuda-based company engaged in the seaborne transportation of liquefied natural gas worldwide. In addition to chartering and management services, the company owns nine M-type electronically controlled gas injection LNG carriers and three generation X dual fuel LNG carriers.
Flex LNG (NYSE:FLNG) declared on February 28 a quarterly per share dividend of $0.75, in line with previous. The dividend is payable on March 15, to shareholders of record on March 2.
On February 16, FLEX LNG Ltd. (NYSE:FLNG) surged 10% to its highest in a month after posting record Q4 results that topped Street estimates. The company announced a Q4 non-GAAP EPS of $1.18, and a revenue of $114.6 million, up 70.1% year-on-year, topping estimates by $4.38 million.
Two Sigma Advisors is a prominent shareholder of the company, with 130,530 shares worth over $3 million. Overall, 2 hedge funds were long FLEX LNG Ltd. (NYSE:FLNG), with collective stakes amounting to $7.3 million.
8. FS KKR Capital Corp. (NYSE:FSK)
Number of Hedge Fund Holders: 11
Dividend Yield as of March 2: 10.90%
FS KKR Capital Corp. (NYSE:FSK) is a business development company that focuses its investments in debt securities, primarily senior secured debt and the subordinated debt of private middle market U.S. companies.
FS KKR Capital Corp. (NYSE:FSK) announced on February 28 a $0.63 per share quarterly dividend, a 1.6% increase from its earlier dividend of $0.62. The dividend is payable on April 4, to shareholders of record on March 16. The stock yields 10.90% as of March 2.
On February 28, FS KKR Capital Corp. (NYSE:FSK)’s fourth quarter results reflected growth in fee and interest income, contributing to better than expected net investment income.
FS KKR Capital Corp. (NYSE:FSK) on January 11 priced a public offering of $500 million of its 3.250% unsecured notes due 2027. Net proceeds will be used for general corporate purposes, including repayment of outstanding indebtedness. The offering closed on January 18, 2022.
Wells Fargo analyst Finian O’Shea on March 2 upgraded FS KKR Capital Corp. (NYSE:FSK) to Equal Weight from Underweight with a price target of $21.50, up from $19.50. The analyst cited a likely improving credit profile and relative NOI stability, supported by a significant spillover balance.
James Morrow’s Callodine Capital Management is a prominent shareholder of FS KKR Capital Corp. (NYSE:FSK), with 439,548 shares worth $9.20 million. Overall, 11 hedge funds were bullish on the stock in the fourth quarter of 2021.
7. Ready Capital Corporation (NYSE:RC)
Number of Hedge Fund Holders: 13
Dividend Yield as of March 2: 11.02%
Ready Capital Corporation (NYSE:RC) was founded in 2007 and is headquartered in New York, operating as a real estate finance company in the United States. The company offers small balance commercial loans, residential mortgage loans, collateralized mortgage backed securities, and other real estate-related investments.
On December 14, Ready Capital Corporation (NYSE:RC) declared a $0.42 per share quarterly dividend, in line with previous. The dividend was paid on January 31, to shareholders of record on December 31. Ready Capital Corporation (NYSE:RC)’s dividend yield on March 2 stood at 11.02%.
In its fourth quarter earnings report, published on February 24, Ready Capital Corporation (NYSE:RC) posted earnings per share of $0.67, beating estimates by $0.16. Revenue over the period jumped 88.15% year-over-year to roughly $122 million, outperforming estimates by $11.02 million.
Riley analyst Matt Howlett raised the price target on Ready Capital Corporation (NYSE:RC) on December 3 to $18 from $17 and reiterated a Buy rating on the shares. The company is well positioned for rising interest rates with 70% of its loans floating rate, combined with 70% of its remaining fixed-rate product match funded, the analyst told investors in a research note.
According to the Q4 database of Insider Monkey, 13 hedge funds were bullish on Ready Capital Corporation (NYSE:RC), with combined stakes of $50.2 million. Thomas Steyer’s Farallon Capital is the largest stakeholder of the company, with more than 1 million shares worth $16.8 million.
6. Western Asset Mortgage Capital Corporation (NYSE:WMC)
Number of Hedge Fund Holders: 9
Dividend Yield as of March 2: 13.04%
Western Asset Mortgage Capital Corporation (NYSE:WMC) is a real estate investment trust based in Pasadena, California, managing a portfolio of agency and non-agency residential mortgage-backed securities, commercial mortgage-backed securities, residential whole-loans, and other financial assets.
On December 21, Western Asset Mortgage Capital Corporation (NYSE:WMC) declared a quarterly dividend of $0.06 per share, in line with previous. The dividend was paid on January 26, to shareholders of record on December 31. Western Asset Mortgage Capital Corporation (NYSE:WMC)’s dividend yield on March 2 came in at 13.04%.
Among the hedge funds tracked by Insider Monkey in Q4 2021, 9 funds reported owning stakes in Western Asset Mortgage Capital Corporation (NYSE:WMC), amounting to $6.6 million, compared to the same number of funds in the preceding quarter, holding stakes in Western Asset Mortgage Capital Corporation (NYSE:WMC) worth $20.6 million. Beach Point Capital Management is a significant shareholder of the company, with 1.13 million shares valued at $2.3 million.
Western Asset Mortgage Capital Corporation (NYSE:WMC) is a significant dividend payer, just like Johnson & Johnson (NYSE:JNJ), Pfizer Inc. (NYSE:PFE), and Exxon Mobil Corporation (NYSE:XOM).
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Disclosure: None. 10 Dividend Stocks with Over 10% Yield is originally published on Insider Monkey.
