In this article, we discuss 5 best high-yield dividend champions to buy in August. If you want to read our detailed analysis of dividend stocks, go directly to read 10 Best High-Yield Dividend Champions to Buy in August.
5. Universal Health Realty Income Trust (NYSE:UHT)
Dividend Yield as of August 1: 5.32%
Universal Health Realty Income Trust (NYSE:UHT) is an American real estate investment trust that specializes in healthcare and human service-related facilities.
In the first half of 2022, Universal Health Realty Income Trust (NYSE:UHT) reported net cash from operating activities of $478 million, up from $119 million at the end of December 2021. The company had cash and cash equivalents of $132.6 million at the end of Q2, up from $115.3 million recorded at the end of 2021.
On June 9, Universal Health Realty Income Trust (NYSE:UHT) declared a 0.7% hike in its quarterly dividend to $0.71 per share. This was the company’s 37th consecutive year of dividend growth, the second longest dividend growth track record in the REIT sector. Its payout ratio currently stands at 36.1%. As of August 1, the stock’s dividend yield came in at 5.32%.
At the end of Q1 2022, 5 hedge funds tracked by Insider Monkey held investments in Universal Health Realty Income Trust (NYSE:UHT), worth nearly $20 million. In the previous quarter, 7 hedge funds owned stakes in the company with a total value of over $22 million. Renaissance Technologies was the company’s leading stakeholder at the end of March 2022.
4. Universal Corporation (NYSE:UVV)
Dividend Yield as of August 1: 5.65%
Universal Corporation (NYSE:UVV) specializes in leaf tobacco and operates through tobacco operations and ingredients operations.
Universal Corporation (NYSE:UVV) pays a quarterly dividend of $0.79 per share. The company has been raising its dividends consecutively for the past 52 years. In Q1 2022, the company generated over $83 million in free cash flow, up from $48 million in the previous quarter. Moreover, its operating cash flow came in at $96.4 million, compared with $69 million at the end of December 2021. Universal Corporation (NYSE:UVV) has a payout ratio of 89.6%. As of August 1, the stock’s dividend yield was recorded at 5.65%.
As per Insider Monkey’s Q1 2022 database, 10 hedge funds owned stakes in Universal Corporation (NYSE:UVV), up from 7 a quarter earlier. The stakes owned by these hedge funds have a value of $85.6 million.
3. Enbridge Inc. (NYSE:ENB)
Dividend Yield as of August 1: 6.04%
A Canada-based multinational pipeline company, Enbridge Inc. (NYSE:ENB) reported cash provided by operating activities of $2.5 billion in Q2 2022. The company’s distributable cash flow came in at $2.7 billion, up from $2.5 billion during the same period last year.
Enbridge Inc. (NYSE:ENB) has been a strong dividend-payer, offering dividends to shareholders for the past 67 years consecutively. The company also maintains a 27-year track record of consistent dividend growth. It pays a quarterly dividend of C$0.86 per share, with a yield of 6.04%, as of the close of August 1.
In June, National Bank lifted its price target on Enbridge Inc. (NYSE:ENB) to C$60 and kept an Outperform rating on the shares.
Rajiv Jain’s GQG Partners owned stakes worth over $2 billion in Enbridge Inc. (NYSE:ENB), becoming the company’s leading stakeholder in Q1. Overall, 24 hedge funds in Insider Monkey’s database had nearly $2.4 billion worth of investments in the Canada-based company.
ClearBridge Investments mentioned Enbridge Inc. (NYSE:ENB) in its Q3 2021 investor letter. Here is what the firm had to say:
“We are meaningfully overweight energy, particularly within North American energy infrastructure. Enbridge and Williams, our two infrastructure holdings, possess crown jewel infrastructure assets. They each deliver meaningful proportions of the overall energy produced and consumed in North America. Their revenues are backed by long-term contracts with high-quality counterparties and have little direct commodity price exposure. Their growth has been driven by the increasing production of North American energy. The advent of unconventional oil and gas production (oil sand and shale) has made North America a low-cost competitor on a global basis. We expect strong North American production to be an enduring feature of global energy supply for decades to come.”
2. Mercury General Corporation (NYSE:MCY)
Dividend Yield as of August 1: 6.17%
Mercury General Corporation (NYSE:MCY) is a California-based multiple-line insurance company that provides services to homeowners, renters, and other businesses.
At the end of Q1 2022, Mercury General Corporation (NYSE:MCY) reported cash of over $295.7 million, with total assets amounting to over $6.6 billion. During Q1, the company paid 56.5% of its net income in dividend payments, which shows that its dividends are safe for the upcoming years. Its free cash flow stood at over $98 million, compared with $61.6 million recorded at the end of December 2021.
Mercury General Corporation (NYSE:MCY) has been raising its dividends for the past 33 years. Its current quarterly payout stands at $0.635 per share, with a yield of 6.17%.
At the end of March 2022, 20 hedge funds in Insider Monkey’s database owned stakes in Mercury General Corporation (NYSE:MCY), up from 16 in the previous quarter. These stakes are collectively valued at $128.8 million.
1. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of August 1: 8.21%
One of the world’s largest producers of tobacco products, Altria Group, Inc. (NYSE:MO) has raised its dividends 56 times in the past 52 years. The company’s quarterly earnings presented solid financial health, with over $3 billion in free cash flow in Q1, up from $2.6 billion in the previous quarter. Its operating cash flow also came in at over $3.07 billion. Altria Group, Inc. (NYSE:MO) pays a quarterly dividend of $0.90 per share, with a dividend yield of 8.21%, as of the close of August 1.
In July, Jefferies expressed concerns regarding slow demand for tobacco-related products in the US and set a $54 price target on Altria Group, Inc. (NYSE:MO) while maintaining a Buy rating on the shares.
Insider Monkey’s database shows that the hedge fund interest increased in Altria Group, Inc. (NYSE:MO) in Q1 2022, as 47 hedge funds owned stakes in the company, up from 39 in the previous quarter. The combined value of these stakes is nearly $2 billion. Ken Griffin, Jim Simons, and Rajiv Jain were the company’s most prominent stakeholders in Q1.
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