In this article, we will be taking a look at 10 dividend stocks with over 7% yield. To skip our detailed analysis of dividend investing, you can go directly to see the 5 Dividend Stocks with Over 7% Yield.
Although investing in stocks is about much more than high dividend yields, such as long-term dividend growth, earnings per share, and price-to-book ratio, investors find high dividend yields very attractive. Moreover, different investors have different reasons for investing, and, accordingly, they may desire different results.
Is High Dividend Yield Important?
According to research published by Mackenzie Investments, companies that initiate, pay, and grow their dividends deliver a higher return and lower risk than companies that do not pay a dividend or those that cut their dividends. Another research by Ned Davis confirms that the companies in the S&P 500 index that grow their dividends have a markedly higher return per annum.
With this background in mind, let us proceed to analyze the 10 dividend stocks with over 7% yield.
Our Methodology
We have carried out extensive research to identify stocks with yields of over 7%. We listed the companies that were famous for their high dividend yields regardless of the industry they operate in. For each stock, we have mentioned its yield and the number of hedge funds holding shares in it.
Why is hedge fund activity important? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Photo by Sharon McCutcheon on Unsplash
10 Dividend Stocks with Over 7% Yield
10. MIND C.T.I. Ltd. (NASDAQ:MNDO)
Number of Hedge Fund Holders: 2
Dividend Yield: 8.05%
MIND C.T.I. Ltd. (NASDAQ: MNDO), a customer care solutions company, is tenth on our list of the 10 dividend stocks with over 7% yield. Headquartered in Yokneam, Israel, the company also operates in the United States, Germany, and Romania.
On March 16, the company announced dividends to be $0.26 per share, which demonstrated an increase of 8.3% from the previous dividend of $0.24.
9. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 68
Dividend Yield: 8.09%
AT&T Inc. (NYSE: T), a telecommunications company, is ninth on our list of the 10 dividend stocks with over 7% yield. The company operates through its Communications, WarnerMedia, and Latin America segments.
By the end of the second quarter of 2021, 68 hedge funds out of the 873 tracked by Insider Monkey held stakes in AT&T Inc. (NYSE: T) worth roughly $2.9 billion. This is compared to 63 hedge funds in the previous quarter with a total stake value of around $2.7 billion.
8. British American Tobacco plc (NYSE:BTI)
Number of Hedge Fund Holders: 12
Dividend Yield: 8.21%
British American Tobacco plc (NYSE: BTI), headquartered in London, England, is a multinational company that produces and markets cigarettes, tobacco, and other nicotine products. The company was established in 1902 and is eighth on our list of the 10 dividend stocks with over 7% yield.
British American Tobacco Plc (NYSE:BTI) recently took part in a $3.5 million funding round in energy and wellness drink startup Tru Inc.
7. Lumen Technologies, Inc. (NYSE:LUMN)
Number of Hedge Fund Holders: 33
Dividend Yield: 8.27%
Lumen Technologies, Inc. (NYSE: LUMN), headquartered in Monroe, Louisiana, is an American telecommunications and cloud computing company. The company offers network services, voice, and security services, and is placed seventh on our list of the 10 dividend stocks with over 7% yield.
By the end of the second quarter of 2021, 33 hedge funds out of the 873 tracked by Insider Monkey held stakes in Lumen Technologies, Inc. (NYSE: LUMN) worth slightly more than $1 billion.
6. PBF Logistics LP (NYSE:PBFX)
Number of Hedge Fund Holders: 4
Dividend Yield: 8.30%
PBF Logistics LP (NYSE: PBFX), based in Parsippany, New Jersey, was founded in 2012. It ranks sixth on our list of the 10 dividend stocks with over 7% yield. The company owns, operates, and also leases pipelines, terminals, and storage facilities of refined petroleum oil.
By the end of the second quarter of 2021, out of the 873 tracked by Insider Monkey, 4 hedge funds held stakes in PBF Logistics LP (NYSE: PBFX) worth roughly $1.895 million. This is compared to 3 hedge funds in the previous quarter with a total stake value of approximately $673,000.
Click to continue reading and see 5 Dividend Stocks with Over 7% Yield.
Suggested articles:
- 15 Fastest Growing Franchises
- 15 Biggest Canadian Software Companies
- 10 Best High Yield Stocks To Buy Now
Disclosure: None. 10 Dividend Stocks with Over 7% Yield is originally published on Insider Monkey.
