10 Very High Yield Dividend Stocks With Upside Potential

6. Rithm Capital Corp. (NYSE:RITM)

Number of Hedge Fund Holders: 20

Dividend Yield as of July 8: 9.49%

Rithm Capital Corp. (NYSE:RITM) ranks sixth on our list of the best dividend stocks with over 8% yield. The American asset management company focuses on real estate and financial services. The company was founded in 2013 and now has grown into one of the largest non-bank mortgage originators in the US. In the beginning, it concentrated on investments in mortgage servicing rights (MSRs). Previously known as New Residential Investment Corp., the company underwent a rebranding in June 2022 and now operates under the name Rithm Capital. Since July 2022, the stock has surged by nearly 11%.

Throughout its history, Rithm Capital Corp. (NYSE:RITM) has significantly leveraged its relationships within the industry. In 2023, the company acquired $1.4 billion worth of prime unsecured consumer loans from the Goldman Sachs Group. This acquisition was particularly advantageous for the company, capitalizing on its established expertise and experience in consumer finance. Later that year, the company acquired Sculptor Capital Management in a transaction valued at nearly $720 million. This strategic move brought in $32 billion in the company’s assets under management (AUM), with a total standing at $35 billion as of 2023.

While Rithm Capital Corp. (NYSE:RITM) is currently expanding and competing with major players, we believe it has substantial growth potential in the years ahead, given its strategic direction. The company has revamped its business model and is actively forming alliances within the industry to leverage opportunities. In addition, it continues to benefit from its servicing revenues, further enhancing its competitive position and outlook for future growth. Its net servicing revenue for the first quarter of 2024 jumped to nearly $555 million, from $15.8 million in the same period last year.

Rithm Capital Corp. (NYSE:RITM), one of the best dividend stocks on our list, announced a quarterly dividend of $0.25 per share on June 18, which was consistent with its previous dividend. In the most recent quarter, the company returned approximately $121 million to shareholders through dividends. As of July 8, the stock has a dividend yield of 9.49%.

Insider Monkey’s database of Q1 2024 indicated that 20 hedge funds held stakes in Rithm Capital Corp. (NYSE:RITM), up from 19 in the preceding quarter. These stakes have a total value of more than $212 million. With over 4.7 million shares, Long Pond Capital was the company’s leading stakeholder in Q1.