10 Very High Yield Dividend Stocks With Upside Potential

3. OUTFRONT Media Inc. (NYSE:OUT)

Number of Hedge Fund Holders: 30

Dividend Yield as of July 8: 8.27%

OUTFRONT Media Inc. (NYSE:OUT) is an American outdoor media company that operates billboards and transit displays. The company is well-placed to benefit from the anticipated drop in interest rates and a recovery in advertising revenue. Global advertising spending is projected to increase by 5.0% in 2024, up from 3.3% in 2023, reaching $754.4 billion. Improved spending forecasts in key markets such as the UK, Germany, the US, Japan, and France drive this growth.

In the first quarter of 2024, OUTFRONT Media Inc. (NYSE:OUT) reported revenue of $408.5 million, which showed a 3.21% growth from the same period last year. The company showed growth in both its segments, with the management showing confidence in its billboard division. Revenues in the billboard segment grew by $8.2 million to $328.8 million in Q1 2024. The company highlighted increased demand in its billboard division, resulting in higher rates, and expected to boost expanding margins as well. Its adjusted funds from operations (AFFO) in the most recent quarter jumped to $23.2 million, from $8.8 million in the prior-year period.

OUTFRONT Media Inc. (NYSE:OUT) is currently exploring opportunities in digital out-of-home (DOOH) advertising. The company appears to be uniquely positioned to capitalize on this trend, particularly as features like programmatic advertising enhance the value of its DOOH assets and increase advertising rates. DOOH is also becoming more popular among consumers, with an 82% aided ad recall rate, indicating that people overwhelmingly remember what they see in these digital ads.

OUTFRONT Media Inc. (NYSE:OUT) offers a quarterly dividend of $0.30 per share and has a dividend yield of 8.27%, as of July 8. The company returned $52.4 million to shareholders through dividends in Q1 2024, which makes OUT one of the best dividend stocks with over 8% yield. Analysts’ consensus price target of $17 represents an upside potential of 17.2%, as of July 8.

According to Insider Monkey’s database of Q1 2024, 30 hedge funds owned stakes in OUTFRONT Media Inc. (NYSE:OUT), compared with 31 in the previous quarter. These stakes have a total value of over $204 million.