In this article, we will be taking a look at the 10 high dividend stocks with over 8% yield. If you want to skip our detailed analysis of dividend investing, you can go directly to the 5 High Dividend Stocks With Over 8% Yield.
An increased income has always been one of the main attractions offered by dividend stocks to both veteran and new investors alike. As such dividend investing is a strategy that has long been part of investor circles, particularly by those looking to establish a stable, passive income stream for themselves.
Dividend stocks like Verizon Communications, Inc. (NASDAQ:VZ), AT&T Inc. (NYSE: T), Exxon Mobil Corporation (NYSE: XOM), and Chevron Corporation (NYSE: CVX) are among some of the most popular stock picks among investors today.
How Important is Dividend Yield?
According to research conducted by Hartford Funds, 84% of the total return of the S&P 500 Index can be attributed to reinvested dividends and compounding since 1970. Additionally, Wellington Management, in collaboration with Hartford Funds, estimated that between 1930 and 2020, high-yielding stocks managed to outperform the S&P 500 index 77.8% of the time while low-yielding stocks managed to outperform the S&P 500 index by about 44.4% of the time.
Our Methodology
For our list, we have selected dividend stocks with yields of over 8%. Using the data tracked by Insider Monkey of about 873 hedge funds, we picked dividend stocks that are highly popular among these hedge funds today. For each stock we have mentioned its yield, along with the number of hedge funds holding a stake in it, ranking them based on their dividend yields. Lastly, we have made use of analyst ratings to determine which stocks are most favorable, largely based on positive ratings.
Why should we pay attention to hedge fund sentiment when choosing stocks? 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 Dan Dennis on Unsplash
10 High Dividend Stocks With Over 8% Yield
10. AT&T Inc (NYSE:T)
Number of Hedge Fund Holders: 68
Dividend Yield as of October 20: 8.07%
Recognized as the largest telecommunications company in the world, as well as the largest provider of mobile telephone services in the United States, AT&T Inc (NYSE:T) is a multinational conglomerate holding company based in Texas. The firm ranks tenth on our list of the 10 high dividend stocks with over 8% Yield.
On October 7, MoffettNathanson analyst Craig Moffett upgraded AT&T Inc (NYSE:T) to Neutral from Sell, with a price target of $28, up from $23.
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 approximately $2.7 billion.
Out of the hedge funds being tracked by Insider Monkey, Ken Griffins’ Citadel Investment Group is a leading shareholder in AT&T Inc. (NYSE:T), with over 32.75 million shares worth more than $942.6 million.
9. Broadmark Realty Capital Inc. (NYSE:BRMK)
Number of Hedge Fund Holders: 12
Dividend Yield as of October 20: 8.13%
Broadmark Realty Capital Inc. (NYSE:BRMK) operates as a real estate investment trust (REIT) that funds, services, and manages a portfolio of the short-term and first deed of trust loans to fund the development of residential or commercial properties in the United States. The company ranks ninth on our list of the 10 high dividend stocks with over 8% yield.
B. Riley’s Matt Howlett is one of the analysts that are bullish on Broadmark Realty Capital Inc. (NYSE:BRMK), initiating coverage of the company with a Buy rating and a $12.50 price target.
By the end of the second quarter of 2021, 12 hedge funds out of the 873 tracked by Insider Monkey held stakes in Broadmark Realty Capital Inc. (NYSE: BRMK) worth roughly $91 million. This is compared to 12 hedge funds in the previous quarter with a total stake value of approximately $99 million. Thomas Steyer of Farallon Capital is the leading shareholder of the company.
8. Dynex Capital, Inc. (NYSE:DX)
Number of Hedge Fund Holders: 9
Dividend Yield as of October 20: 8.62%
Dynex Capital, Inc. (NYSE: DX) is engaged in the real estate investment trust (REIT) sector to invest in mortgage-backed securities (MBS) on a leveraged basis in the United States. The Virginia-based company ranks eighth on our list of the 10 high dividend stocks with over 8% yield.
According to our database, Marshal Wace LLP is one of the largest shareholders of the company. By the end of the second quarter of 2021, 9 hedge funds out of the 873 tracked by Insider Monkey held stakes in Dynex Capital, Inc. (NYSE:DX) worth roughly $27 million, up from 8 hedge funds in the preceding quarter with a total stake value of approximately $24 million.
Besides AT&T Inc. (NYSE: T), Exxon Mobil Corporation (NYSE: XOM), and Chevron Corporation (NYSE: CVX), Dynex Capital, Inc. (NYSE:DX) is a smart investment choice among dividend investors.
7. AGNC Investment Corp. (NASDAQ:AGNC)
Number of Hedge Fund Holders: 19
Dividend Yield as of October 20: 8.64%
AGNC Investment Corp. (NASDAQ:AGNC) is a real estate investment trust (REIT) that invests in residential mortgage pass-through securities (RMBS) and collateralized mortgage obligations. The company comes in at seventh on our list of the 10 high dividend stocks with over 8% yield.
Investment advisory Barclays remains bullish on the company, holding an Overweight rating alongside a $17 price target on shares of AGNC Investment Corp. (NASDAQ: AGNC), led by analyst Mark DeVries.
Of the 873 elite hedge funds being tracked by Insider Monkey, 19 held stakes in AGNC Investment Corp. (NASDAQ: AGNC) worth roughly $151 million. This is compared to 18 hedge funds in the previous quarter with a total stake value of approximately $167 million. Jim Simons’ Renaissance Technologies is among the leading shareholders in the company.
In addition to AT&T Inc. (NYSE: T), Exxon Mobil Corporation (NYSE: XOM), and Chevron Corporation (NYSE: CVX), AGNC Investment Corp. (NASDAG:AGNC) is a stock that investors are paying attention to.
6. NexPoint Real Estate Finance Inc. (NYSE:NREF)
Number of Hedge Fund Holders: 4
Dividend Yield as of October 20: 9.09%
NexPoint Real Estate Finance Inc. (NYSE:NREF) is a real estate investment trust (REIT) that invests in mortgage loans on single and multi-family rental units, as well as owns a portfolio of storage facilities and commercial office spaces. The Texas-based company ranks sixth on our list of the 10 high dividend stocks with over 8% yield.
Baird analyst Amanda Switzer keeps an Outperform rating on NexPoint Real Estate Finance Inc. (NYSE:NREF) alongside a price target of $22 on its shares, implying a 12% upside for the year.
Click to continue reading and see the 5 High Dividend Stocks With Over 8% Yield.
Suggested articles:
- 25 Most Climate-Resilient Cities in the US
- 10 Best Software Stocks To Buy Now
- 30 Best Quotes from Warren Buffett
Disclosure: None. 10 High Dividend Stocks With Over 8% Yield is originally published on Insider Monkey.
