10 Extreme Dividend Stocks to Invest in Now

8. Delek Logistics Partners, LP (NYSE:DKL)

Dividend Yield as of January 23: 9.70%

Delek Logistics Partners, LP (NYSE:DKL) is an American midstream and logistics company that primarily provides transportation and storage services for crude oil, refined products, and other liquid hydrocarbons. The company’s operations produce steady earnings, with 36% of its EBITDA coming from long-term contracts with Delek and the remaining 64% from third-party customers. Since the start of 2025, the stock has surged by over 5%.

Delek Logistics Partners, LP (NYSE:DKL) generates sufficient cash to support its high-yield distribution. In the third quarter of 2024, its coverage ratio stood at 1.1, slightly below the target of 1.3 due to the timing of its H2O Midstream acquisition, which was finalized late in the quarter. In addition, the company received distributions from its recent investment in the Wink-to-Webster pipeline after the quarter’s close. Over the past several years, the company’s coverage ratio has consistently averaged above 1.3.

Moreover, Delek Logistics Partners, LP (NYSE:DKL) has a strong cash generation and a decent balance sheet. At the end of the quarter, the company’s leverage ratio stood at 4.15, which is a healthy level for a master limited partnership. Its operating cash flow came in at $25 million and distributable free cash flow amounted to $62 million. Due to this cash position, the company was able to raise its dividends for 47 consecutive quarters, which makes DKL one of the best dividend stocks on our list. It offers a quarterly dividend of $1.10 per share and has a dividend yield of 9.7%, as of January 23.

According to Insider Monkey’s database of Q3 2024, 23 hedge funds owned stakes in Delek Logistics Partners, LP (NYSE:DKL), compared with 26 in the previous quarter. These stakes have a total value of over $196.3 million. Ken Griffin’s Citadel Investment Group was the company’s leading stakeholder in Q3.