5 Best Dividend Stocks Paying Over 6%

1. Chesapeake Energy Corporation (NASDAQ:CHK)

Number of Hedge Fund Holders: 70

Dividend Yield as of December 27: 10.30%

Chesapeake Energy Corporation (NASDAQ:CHK) is an independent exploration and production company, focused on the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids in the United States. On November 11, Chesapeake Energy Corporation (NASDAQ:CHK) declared a $3.16 per share quarterly dividend, a 36.2% increase from its prior dividend of $2.32. The dividend was distributed to unitholders on December 1. It is one of the best dividend stocks to monitor. 

On October 19, Jefferies analyst Lloyd Byrne initiated coverage of Chesapeake Energy Corporation (NASDAQ:CHK) with a Buy rating and a $150 price target. He believes the “Option Value” of energy is up again, supported by a tight capital cycle. 

According to Insider Monkey’s data, 70 hedge funds were long Chesapeake Energy Corporation (NASDAQ:CHK) at the end of Q3 2022, compared to 67 funds in the last quarter. Howard Marks’ Oaktree Capital Management is the largest stakeholder of the company, with 9.80 million shares worth $923.25 million. 

Miller Value Partners made the following comment about Chesapeake Energy Corporation (NASDAQ:CHK) in its Q3 2022 investor letter:

“Chesapeake Energy Corporation (NASDAQ:CHK) gained 19.1% in the period. The company reported 2Q22 Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization, and Exploration Expense (EBITDAX) of $1,269MM, +195.8% Y/Y, ahead of consensus of $1,226MM, and Adjusted Earnings per Share (EPS) of $4.87, compared to 2Q21 EPS of $1.64, ahead of analyst expectations for EPS of $3.82. Chesapeake generated adjusted free cash flow (FCF) of $494MM, bringing TTM FCF to $1,663MM, or a FCF yield of 14.4%. Management also raised the company’s base dividend by 10% to $2.20/share, bringing the total quarterly dividend to $2.32/share, or an annualized yield of ~9.7%. Additionally, the company doubled its existing share repurchase authorization from $1B to $2B and has executed $670MM in repurchases so far through 7/31/22. Collectively, management is guiding for $1.2B in total FY22 dividends, at the midpoint, and $1B in share buybacks, implying total FY22 shareholder returns of $2.2B, or ~19.1% of the company’s market cap.”

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