4 Coal Stocks that Pay Dividends

2. Arch Resources, Inc. (NYSE:ARCH)

Number of Hedge Fund Holders: 44 

Dividend Yield as of August 19: 0.63%    

Arch Resources, Inc. (NYSE:ARCH) produces and sells coal. The firm is making inroads in the dividend space as it seeks to woo long-term investors. Two years of consistent payouts would bring the firm in line with the sector median in this regard. In late July, the company declared a dividend of $6 per share, which is equivalent to 50% of the second quarter discretionary cash flow, per Paul A. Lang, the CEO of the firm. In late April, the firm had declared a quarterly dividend of $0.25 per share, in line with previous. 

On July 29, B. Riley analyst Lucas Pipes maintained a Buy rating on Arch Resources, Inc. (NYSE:ARCH) stock and lowered the price target to $221 from $234, noting that the recent weakness in the shares was a buying opportunity. 

At the end of the second quarter of 2022, 44 hedge funds in the database of Insider Monkey held stakes worth $723 million in Arch Resources, Inc. (NYSE:ARCH), compared to 45 in the previous quarter worth $1 billion. 

In its Q2 2022 investor letter, Kingdom Capital Advisor, an asset management firm, highlighted a few stocks and Arch Resources, Inc. (NYSE:ARCH) was one of them. Here is what the fund said:

“Arch Resources, Inc. (NYSE:ARCH): When we began following Arch, we focused on their metallurgical coal segment and viewed their thermal coal segment as a source of potential upside. However, especially since Russia’s invasion of Ukraine, energy security has surged into focus and Arch’s thermal operation now faces higher spot prices than their met sales. Arch retired most of their convertible debt during Q2, another example of their strong commitment to delivering shareholder value. Estimates for Q2 suggest Arch Resources, Inc. (NYSE:ARCH) should earn over $20/share vs a $130 share price, and they remain committed to distributing half of their cash flow via dividends.”