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 dividend stocks and their performance, go directly to read 15 Best High-Yield Dividend Stocks To Buy Now. 

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

Number of Hedge Fund Holders: 34
Dividend Yield as of March 18: 6.82%

Kinder Morgan, Inc. (NYSE:KMI) is a Texas-based energy infrastructure company that controls oil and gas pipelines. Scotiabank initiated its coverage on the stock with a Sector Perform rating and a $20 price target, appreciating the company’s improving and stable landscape.

Kinder Morgan, Inc. (NYSE:KMI) currently pays a quarterly dividend of $0.2775 per share and has a dividend yield of 6.82%, as of March 18. It maintains a 5-year streak of consistent dividend growth. The company is among the best high-yield dividend stocks on our list.

At the end of December 2022, 34 hedge funds in Insider Monkey’s database owned investments in Kinder Morgan, Inc. (NYSE:KMI), worth over $1.11 billion collectively. With over 25.8 million shares, Orbis Investment Management was the company’s leading stakeholder in Q4.

4. Lincoln National Corporation (NYSE:LNC)

Number of Hedge Fund Holders: 36
Dividend Yield as of March 18: 8.87%

Lincoln National Corporation (NYSE:LNC) is an American insurance and investment management company. On February 16, the company declared a quarterly dividend of $0.45 per share, which fell in line with its previous dividend. It has been rewarding shareholders with growing payouts for the past consecutive 11 years. The stock’s dividend yield on March 18 came in at 8.87%. Its solid dividend yield and dividend growth track record make it one of the best high-yield dividend stocks to buy.

As of the close of Q4 2022, 36 hedge funds tracked by Insider Monkey reported having stakes in Lincoln National Corporation (NYSE:LNC), worth roughly $505 million collectively.

3. Altria Group, Inc. (NYSE:MO)

Number of Hedge Fund Holders: 45
Dividend Yield as of March 18: 8.30%

Altria Group, Inc. (NYSE:MO) is a Virginia-based producer and marketer of tobacco, cigarettes, and related products. The company reported a strong cash position in FY22 as it returned nearly $6.6 billion to shareholders in dividends. It is among the best high-yield dividend stocks on our list.

Altria Group, Inc. (NYSE:MO) is a Dividend King with 53 consecutive years of dividend growth. The company currently pays a quarterly dividend of $0.94 per share and has a dividend yield of 8.30%, as of March 18.

At the end of Q4 2022, 45 hedge funds tracked by Insider Monkey reported owning stakes in Altria Group, Inc. (NYSE:MO), compared with 47 in the previous quarter. These stakes have a total value of over $1.8 billion.

2. Devon Energy Corporation (NYSE:DVN)

Number of Hedge Fund Holders: 55
Dividend Yield as of March 18: 10.96%

Devon Energy Corporation (NYSE:DVN) specializes in the exploration of hydrocarbons. Following the company’s recent quarterly results, Barclays maintained an Equal Weight rating on the stock with a $67 price target.

On February 14, Devon Energy Corporation (NYSE:DVN) announced an 11% raise in its quarterly dividend to $0.20 per share. The stock has a dividend yield of 10.96%, as recorded on March 18.

The number of hedge funds tracked by Insider Monkey owning stakes in Devon Energy Corporation (NYSE:DVN) grew to 55 in Q4 2022, from 51 in the previous quarter. The collective value of these stakes is over $823.5 million.

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.”

1. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 56
Dividend Yield as of March 18: 7.09%

Verizon Communications Inc. (NYSE:VZ) tops our list of the best high-yield dividend stocks to buy now. The multinational telecommunications company currently offers a per-share dividend of $0.6525 every quarter for a dividend yield of 7.09%, as of March 18. It has been raising its dividends consistently for the past 16 years.

At the end of Q4 2022, Verizon Communications Inc. (NYSE:VZ) was a part of 56 hedge fund portfolios, as per Insider Monkey’s data. The stakes owned by these funds have a total value of over $1.5 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.”

You can also take a look at 10 Best Stocks to Buy for Medium Term and 10 Best Canadian Gold Stocks to Buy

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