In this article, we discuss 15 highest yielding dividend stocks you can buy today. You can skip our detailed analysis of dividend stocks and high yields, and go directly to read 5 Highest Yielding Dividend Stocks You Can Buy Today.
The performance of high-yielding stocks can vary significantly over time and is influenced by various economic, market, and company-specific factors. In one of our articles, we referred to research by Columbia Business School to analyze the performance of high-yielding dividend stocks. According to the report, between January 2000 and May 2010, the High Dividend Index showed an average yearly gain of 6.16%. In contrast, the S&P 500 had a decline of 4.75% during that time. In addition to this, Morgan Stanley conducted a study that looked at how high-dividend stocks performed during inflationary periods. The report mentioned these stocks typically do well when inflation is higher than usual but on a downward trend. The report also mentioned that their stability and dependable income make high-yielding stocks a relatively secure choice, especially appealing when economic conditions are uncertain.
That said, not all dividends are the same. Going for the stock with the highest yield can be riskier. Analysts advise that investors should look for companies that are reliable and have a history of increasing their dividends each year. However, companies must use their funds wisely to sustain returns for their shareholders. Max Wasserman, founder and senior portfolio manager at Miramar Capital, spoke with the Wall Street Journal about the payout ratios in his interview earlier this year. He said that a lot of the recent halts and reductions in dividend payments happened because companies made bad decisions about how they use their money. Here are some comments from the analyst:
“Some companies have been stretching their balance sheets to remain dividend ‘aristocrats’ or to stay on the radar of mutual funds and dividend investors, and it’s hit their cash flows. With higher debt costs, inflation and uncertainty, they’ve made the decision to cut the dividend in response.”
The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) have raised their dividends consecutively for decades which shows that these companies have solid balance sheets with strong cash flows. In this article, we will explore dividend stocks with the highest yields.
Our Methodology:
For this list, we selected dividend stocks with yields ranging from 10% to 19%, as of September 7. The majority of these stocks belong to the REIT sector, as these companies are required to pay approximately 90% of their income to shareholders as a distribution. As these stocks have exceptionally high yields, a lot of the companies on the list don’t have a consistent record of paying dividends. They’ve either stopped or reduced their dividend payments in 2020 due to the pandemic or because they were facing financial difficulties.
15. Cal-Maine Foods, Inc. (NASDAQ:CALM)
Dividend Yield as of September 7: 10.84%
Cal-Maine Foods, Inc. (NASDAQ:CALM) is an American company that specializes in the production and marketing of shell eggs. The company operates multiple farms and facilities where they raise laying hens to produce eggs. On August 3, the company declared a quarterly dividend of $0.76 per share, which was in line with its previous dividend. Its dividend growth history remained somewhat unstable after the pandemic but the company paid regular dividends to shareholders. As of September 7, the stock has a dividend yield of 10.84%.
The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some other dividend stocks that have regularly raised their dividends over the years.
At the end of Q2 2023, 26 hedge funds tracked by Insider Monkey reported having stakes in Cal-Maine Foods, Inc. (NASDAQ:CALM), compared with 28 in the previous quarter. The collective value of these stakes is over $126.6 million.
Diamond Hill Capital mentioned Cal-Maine Foods, Inc. (NASDAQ:CALM) in its Q2 2023 investor letter. Here is what the firm has to say:
“Our bottom contributors in Q2 included Ashland and Cal-Maine Foods, Inc. (NASDAQ:CALM). Cal-Maine Foods is the largest producer and marketer of shell eggs in the US. During Q2, wholesale commodities and caged egg prices normalized in the US, helped by the country having seemingly averted an avian flu outbreak — a combination which, though positive for the industry, pressured shares during the quarter. We maintain our positive outlook on Cal-Maine given the company’s significant investment in specialty and cage-free egg production, which we expect should benefit from a secular tailwind in the period ahead.”
14. Blackstone Mortgage Trust, Inc. (NYSE:BXMT)
Dividend Yield as of September 7: 10.85%
Blackstone Mortgage Trust, Inc. (NYSE:BXMT) is an American real estate investment trust company that primarily focuses on real estate finance and investment activities. It is one of the best dividend stocks on our list with high yields as the company neither slashed nor ceased its dividend payments during the pandemic. It currently pays a quarterly dividend of $0.62 per share and has a dividend yield of 10.85%, as recorded on September 7.
At the end of June 2023, 18 hedge funds in Insider Monkey’s database reported having stakes in Blackstone Mortgage Trust, Inc. (NYSE:BXMT), worth collectively over $101.6 million. With roughly 2 million shares, Citadel Investment Group was the company’s leading stakeholder in Q2.
13. OUTFRONT Media Inc. (NYSE:OUT)
Dividend Yield as of September 7: 10.92%
OUTFRONT Media Inc. (NYSE:OUT) is a New York-based company that operates in the outdoor advertising industry. It specializes in providing advertising space and solutions on various outdoor media platforms. The company temporarily stopped paying dividends to shareholders in 2020 in the face of the pandemic and resumed its payouts a year later. It currently pays a quarterly dividend of $0.30 per share for a dividend yield of 10.92%, as of September 7.
OUTFRONT Media Inc. (NYSE:OUT) was a part of 24 hedge fund portfolios at the end of Q2 2023, according to Insider Monkey’s database. The stakes owned by these hedge funds have a total value of nearly $231 million.
12. Hawaiian Electric Industries, Inc. (NYSE:HE)
Dividend Yield as of September 7: 11.75%
Hawaiian Electric Industries, Inc. (NYSE:HE) is a holding company based in Hawaii that mainly provides electric utility and banking services to its consumers. Though the stock has a high dividend yield of 11.75%, it managed to raise its dividends for five consecutive years, which makes it one of the best dividend stocks on our list. The company currently pays a quarterly dividend of $0.36 per share.
The number of hedge funds tracked by Insider Monkey reported having stakes in Hawaiian Electric Industries, Inc. (NYSE:HE) grew to 18 in Q2 2023, from 15 in the previous quarter. The consolidated value of these stakes is roughly $50 million.
11. Dynex Capital, Inc. (NYSE:DX)
Dividend Yield as of September 7: 12.17%
Dynex Capital, Inc. (NYSE:DX) is a Virginia-based real estate investment trust company that primarily focuses on investments in mortgage-backed securities and other real estate-related assets. It is one of the best dividend stocks on our list as it pays monthly dividends to shareholders. On August 11, the company announced a monthly dividend of $0.13 per share, which was consistent with its previous dividend. The stock’s dividend yield on September 7 came in at 12.17%.
As of the close of the June quarter of 2023, 12 hedge funds in Insider Monkey’s database held investments in Dynex Capital, Inc. (NYSE:DX), up from 11 in the previous quarter. The consolidated value of these stakes is over $57.7 million.
10. Ares Commercial Real Estate Corporation (NYSE:ACRE)
Dividend Yield as of September 7: 12.83%
An American real estate investment trust company, Ares Commercial Real Estate Corporation (NYSE:ACRE) is next on our list of the best dividend stocks. The company currently pays a quarterly dividend of $0.33 per share and has a dividend yield of 12.83%, as recorded on September 7.
The number of hedge funds tracked by Insider Monkey owning stakes in Ares Commercial Real Estate Corporation (NYSE:ACRE) stood at 4 at the end of Q2 2023, which remained unchanged from the previous quarter. The consolidated value of these stakes is over $11.5 million. Among these hedge funds, Millennium Management was the company’s leading stakeholder in Q2.
9. Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI)
Dividend Yield as of September 7: 13.26%
Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) is an American real estate investment trust company that primarily focuses on financing and investing in commercial real estate assets. The company was a part of 9 hedge fund portfolios at the end of Q2 2023, according to Insider Monkey’s database. The total value of stakes owned by these hedge funds is over $4.15 million.
Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) reduced its quarterly dividend due to the pandemic. However, it continued to provide its shareholders with consistent dividend payments during that challenging period. The company currently pays a quarterly dividend of $0.35 per share and has a dividend yield of 13.26%, as of September 7.
8. Big 5 Sporting Goods Corporation (NASDAQ:BGFV)
Dividend Yield as of September 7: 13.59%
Big 5 Sporting Goods Corporation (NASDAQ:BGFV) is a California-based sporting goods company that offers a diverse array of products, including athletic footwear, apparel, sporting equipment, and accessories for various sports and outdoor activities.
Big 5 Sporting Goods Corporation (NASDAQ:BGFV), one of the best dividend stocks on our list, currently pays a quarterly dividend of $0.30 per share. The company raised its dividends three times after the pandemic and also holds a strong history of paying special dividends to shareholders. As of September 7, the stock has a dividend yield of 13.59%.
As of the close of Q2 2023, 5 hedge funds tracked by Insider Monkey held stakes in Big 5 Sporting Goods Corporation (NASDAQ:BGFV), the same as in the previous quarter. The collective value of these stakes is over $2.44 million.
7. Ellington Financial Inc. (NYSE:EFC)
Dividend Yield as of September 7: 13.68%
Ellington Financial Inc. (NYSE:EFC) is a specialty finance company that primarily focuses on investing in a wide range of financial assets, including mortgage-backed securities, mortgage-related derivatives, and other structured finance products. The company offers monthly dividends to shareholders and currently pays a per-share dividend of $0.15 every month. As of September 7, the stock has a dividend yield of 13.68%.
Insider Monkey’s database of Q2 2023 showed that 6 hedge funds owned stakes in the company, compared with 5 in the previous quarter. The collective value of these stakes is roughly $17 million.
6. KKR Real Estate Finance Trust Inc. (NYSE:KREF)
Dividend Yield as of September 7: 14.04%
KKR Real Estate Finance Trust Inc. (NYSE:KREF) ranks sixth on our list of the best dividend stocks to buy with high yields. The real estate investment trust company currently offers a quarterly dividend of $0.43 per share and has a dividend yield of 14.04%, as of September 7. The company has been making regular dividend payments to shareholders since 2017.
KREF can be a good addition to dividend portfolios alongside some of the best dividend stocks like The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP).
At the end of the second quarter of 2023, 5 hedge funds in Insider Monkey’s database reported having stakes in KKR Real Estate Finance Trust Inc. (NYSE:KREF), compared with 7 in the previous quarter. The total value of these stakes is nearly $18 million.
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Disclosure. None. 15 Highest Yielding Dividend Stocks You Can Buy Today is originally published on Insider Monkey.
