5 Best High-Yield Dividend Stocks To Buy Now

In this article, we will discuss 5 best high-yield dividend stocks to buy now. If you want to read our detailed analysis of high-dividend stocks and their performance over the years, go directly to read 12 Best High-Yield Dividend Stocks To Buy Now. 

5. Kinder Morgan, Inc. (NYSE:KMI)

Dividend Yield as of November 22: 5.90%

Kinder Morgan, Inc. (NYSE:KMI) is a Texas-based energy infrastructure company that owns and controls oil and gas pipelines and terminals. In October, Barclays maintained an Equal Weight rating on the shares with a $20 price target, highlighting the company’s strong demand outlook.

In the third quarter of 2022, Kinder Morgan, Inc. (NYSE:KMI) reported a revenue of $5.18 billion, which showed a 35.6% growth from the same period last year. The company’s distributable cash flow came in at over $1.1 billion, compared with $1 billion in the prior-year quarter. Its adjusted earnings amounted to over $575 million, compared with $505 million in the third quarter of 2021.

On October 19, Kinder Morgan, Inc. (NYSE:KMI) declared a quarterly dividend of $0.2275 per share, in line with its previous dividend. The company is one of the best dividend stocks on our list as it has raised its payouts consistently for the past 5 years. As of November 22, the company’s shares boast a yield of 5.90%.

As of the end of Q3 2022, 38 hedge funds tracked by Insider Monkey owned stakes in Kinder Morgan, Inc. (NYSE:KMI), compared with 41 in the previous quarter. These stakes have a collective value of over $1.06 billion. Orbis Investment Management was the company’s leading stakeholder in Q3.

4. Verizon Communications Inc. (NYSE:VZ)

Dividend Yield as of November 22: 6.70%

Verizon Communications Inc. (NYSE:VZ) is an American multinational telecommunications company that provides wireless and broadband services to its consumers. The company has been raising its dividends for the past 16 years, coming through as one of the best dividend stocks on our list. It currently pays a quarterly dividend of $0.6526 per share and has a dividend yield of 6.70%, as of November 22.

In the third quarter of 2022, Verizon Communications Inc. (NYSE:VZ) reported a revenue of $34.2 billion, which showed a 4% growth from the same period last year. In the first nine months of the year, the company generated $28.2 billion and its free cash flow for the period came in at $12.4 billion.

Verizon Communications Inc. (NYSE:VZ) saw growth in hedge fund positions in Q3 2022, as 62 funds in Insider Monkey’s database owned stakes in the company, up from 58 in the previous quarter. The collective value of these stakes is over $1.42 billion.

Mawer Investment Management mentioned Verizon Communications Inc. (NYSE:VZ) in its Q3 2022 investor letter. Here is what the firm has to say:

“There are a few other segments of our portfolios that displayed weakness in the quarter. Cable and telecommunication companies have been an area that has lagged the broader market as their worlds are increasingly colliding. Companies such as Verizon (NYSE:VZ) has been impacted as wireless operator is spending heavily to attract internet subscribers with fixed wired access and the cable companies are trying to build wireless businesses.”

3. Devon Energy Corporation (NYSE:DVN)

Dividend Yield as of November 22: 7.35%

Devon Energy Corporation (NYSE:DVN) is an American energy company that is engaged in the exploration of hydrocarbons. In Q3 2022, the company’s revenue came in at $5.43 billion, which showed a 56.5% growth compared to the same period last year. It generated $2.1 billion in operating cash flow, up 32% from the prior-year period. The company’s cash flow for the quarter was recorded at $1.5 billion.

Argus raised its price target on Devon Energy Corporation (NYSE:DVN) to $90 and maintained a Buy rating on the shares, following the company’s Q3 earnings. The firm also appreciated the company’s strong balance sheet and substantial liquidity.

Devon Energy Corporation (NYSE:DVN) is one of the best dividend stocks on our list as it has paid regular dividends to shareholders for 29 years in a row. Its current quarterly dividend stands at $1.35 per share with a dividend yield of 7.35%, as of November 22.

Devon Energy Corporation (NYSE:DVN) was a part of 51 hedge fund portfolios in Q3 2022, according to Insider Monkey’s database. The stakes owned by these hedge funds have a total value of over $1.5 billion.

GoodHaven Capital Management mentioned Devon Energy Corporation (NYSE:DVN) in its Q2 2022 investor letter. Here is what the firm has to say:

“Our biggest dollar gainer within this period was Devon Energy Corporation (NYSE:DVN), a position which emanated from a takeover in early 2021 of our long time holding WPX Energy. We are sitting on a material (unrealized) gain from our cost and are now receiving material dividends thanks to Devon’s thoughtful fixed/variable dividend policy. Energy is now a hot sector for investors but we have had a material exposure for a long time. We remember a bit too well $40 oil, NEGATIVELY PRICED front-month oil contract, and what it’s like to own a company with leverage and negative free cash flow during such periods. Our desire to have our biggest portfolio exposures be high return, growing, reasonably predictable and moderately levered companies lead us to reduce our Devon exposure in the past. When the recent facts and circumstances for the industry changed and appeared supportive of healthy oil prices, we decided to maintain a sizable holding and more recently added to the position. At Devon’s Q1 dividend rate, which is mostly variable in nature, the shares now yield approximately 10% and our yield on our average cost is materially higher. In addition, we maintain additional energy exposure through our long-term (and successful) holding in Hess Midstream and less directly through TerraVest and Berkshire Hathaway’s energy investments.”

2. Magellan Midstream Partners, L.P. (NYSE:MMP)

Dividend Yield as of November 22: 7.92%

Magellan Midstream Partners, L.P. (NYSE:MMP) is an Oklahoma-based partnership that specializes in ammonia and petroleum pipelines in the Mid-continent oil province. In October, Barclays raised its price target on the stock to $55 with an Equal Weight rating, following the company’s third-quarter earnings.

In Q3 2022, Magellan Midstream Partners, L.P. (NYSE:MMP) reported a revenue of $876 million, up 37% from the same period last year. The company’s free cash flow for the quarter came in at $273 million, compared with $252 million in the prior-year period. Its free cash flow was enough to fulfill its shareholder obligation.

On October 20, Magellan Midstream Partners, L.P. (NYSE:MMP) announced a 1% hike in its quarterly dividend to $1.0475 per share. This was the company’s 21st consecutive year of dividend growth, which makes it one of the best dividend stocks to buy now. The stock has a dividend yield of 7.92%, as recorded on November 22.

At the end of Q3 2022, 10 hedge funds tracked by Insider Monkey owned stakes in Magellan Midstream Partners, L.P. (NYSE:MMP), up from 9 in the previous quarter. The collective value of these stakes is over $20.2 million. With 1.6 million shares, First Eagle Investment Management was the company’s leading stakeholder in Q3.

1. Claros Mortgage Trust, Inc. (NYSE:CMTG)

Dividend Yield as of November 22: 8.29%

Claros Mortgage Trust, Inc. (NYSE:CMTG) is a real estate investment trust company that specializes in senior and subordinate loans on commercial real estate. In Q3 2022, the company reported $878 million of total loan commitments across its six investments. It also funded nearly $186 million of follow-on funding related to the existing loan portfolio.

Claros Mortgage Trust, Inc. (NYSE:CMTG) started paying dividends in December 2021 and currently pays a quarterly dividend of $0.37 per share. The stock’s dividend yield on November 22 came in at 8.29%.

The number of hedge funds tracked by Insider Monkey owning stakes in Claros Mortgage Trust, Inc. (NYSE:CMTG) grew to 8 in Q3 2022, from 4 in the previous quarter. The collective value of these stakes is over $15 million.

You can also take a look at 14 Best Blue Chip Dividend Stocks to Buy and 15 Best Consistent Dividend Stocks to Buy.

Follow Insider Monkey on Twitter