In this article, we will be looking at the 5 best high yield dividend stocks under $50. To read our detailed analysis of dividend investing, you can go directly to the 10 Best High Yield Dividend Stocks Under $50.
5. AT&T Inc. (NYSE: T)
Number of Hedge Fund Holders: 63
Dividend Yield: 7.23%
AT&T Inc. (NYSE: T) is a telecommunications, media, and technology services provider operating worldwide. The company has three segments: Communications, WarnerMedia, and Latin America. It ranks 5th on our list of the best high yield dividend stocks under $50.
On June 30th, it was revealed that AT&T Inc. (NYSE: T) would be moving its 5G mobile network to Microsoft Corporation’s (NASDAQ: MSFT) Azure for Operator’s cloud in a strategic move. The company’s WarnerMedia segment is also bringing in $1.4 billion through the sale of Playdemic to Electronic Arts Inc. (NASDAQ: EA). In the first quarter of 2021, AT&T Inc. (NYSE: T) had an EPS of $0.86, beating estimates by $0.08. The company’s revenue was $43.94 billion, up 2.71% year over year and beating estimates by $1.27 billion, and it has a gross profit margin of 52.68%. The stock has a forward PE ratio of 9.17.
By the end of the first quarter of 2021, 63 hedge funds out of the 866 tracked by Insider Monkey held stakes in AT&T Inc. (NYSE: T), worth about $2.7 billion. This is compared to 58 hedge fund holders in the previous quarter, holding stakes worth roughly $1.04 billion.
4. Enterprise Products Partners L.P. (NYSE: EPD)
Number of Hedge Fund Holders: 26
Dividend Yield: 7.46%
Enterprise Products Partners L.P. (NYSE: EPD) is a provider of midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, petrochemicals, and refined products. The company ranks 4th on our list of the best high yield dividend stocks under $50.
On June 21st, Magellan Midstream Partners, L.P. (NYSE: MMP) and Enterprise Products Partners L.P. (NYSE: EPD) announced their futures contract with Intercontinental Exchange (NYSE: ICE) for the delivery of crude oil in Houston. The CEO of Enterprise Products Partners L.P. (NYSE: EPD) also commented this May that the demand for hydrocarbons could rise and hit an all-time-high record in 2022 as the economy rebounds. In the first quarter of 2021, Enterprise Products Partners L.P. (NYSE: EPD) had an EPS of $0.64, beating estimates by $0.17. The company’s revenue was $9.16 billion, up 22.36% year over year and beating estimates by $2.08 billion. It has a gross profit margin of 20.64% and the stock has gained 25.09% in the past 6 months and year to date.
By the end of the first quarter of 2021, 26 hedge funds out of the 866 tracked by Insider Monkey held stakes in Enterprise Products Partners L.P. (NYSE: EPD), worth about $299 million. This is compared to 30 hedge fund holders in the previous quarter, holding stakes worth roughly $316 million.
ClearBridge Investments, an investment management firm, mentioned Enterprise Products Partners L.P. (NYSE: EPD) in its first-quarter 2021 investor letter. Here’s what they said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) Enterprise Products Partners LP. We are positive on this company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
3. Magellan Midstream Partners, L.P. (NYSE: MMP)
Number of Hedge Fund Holders: 14
Dividend Yield:8.4%
Magellan Midstream Partners, L.P. (NYSE: MMP) is a company operating in the transportation, storage, and distribution of refined petroleum products and crude oil in the US. The company ranks 3rd on our list of the best high yield dividend stocks under $50.
This April, Magellan Midstream Partners, L.P. (NYSE: MMP) commented that spring 2021 refined product shipments across the company’s mid-continent and Gulf Coast pipeline would cross the spring 2019 record by about 3%, while gasoline shipments are expected to cross 2020 levels by 13%, diesel shipments to exceed by 10%, and aviation fuel shipments to grow by 25%. On June 21st, Magellan Midstream Partners, L.P. (NYSE: MMP) and Enterprise Products Partners L.P. (NYSE: EPD) announced their futures contract with Intercontinental Exchange (NYSE: ICE) for the delivery of crude oil in Houston. In the first quarter of 2021, Magellan Midstream Partners, L.P. (NYSE: MMP) had an EPS of $1.09, beating estimates by $0.23, while its revenue of $661.07 million missed estimates by $8.51 million. The stock has a forward PE ratio of 12.03 and has gained 18.23% in the past 6 months and year to date. Magellan Midstream Partners, L.P. (NYSE: MMP) has a gross profit margin of 55.26% as well.
By the end of the first quarter of 2021, 14 hedge funds out of the 866 tracked by Insider Monkey held stakes in Magellan Midstream Partners, L.P. (NYSE: MMP), worth about $85 million. This is compared to 22 hedge fund holders in the previous quarter, holding stakes worth roughly $146 million.
2. Phillips 66 Partners LP (NYSE: PSXP)
Number of Hedge Fund Holders: 5
Dividend Yield:8.87%
Phillips 66 Partners LP (NYSE: PSXP) is an operator of midstream assets. The company offers transportation, terminaling, processing, stevedoring, storage, and fractionation of crude oil and other such products. It ranks 2nd on our list of the best high yield dividend stocks under $50.
This April, Phillips 66 Partners LP (NYSE: PSXP) gained to its highest level since August last year in light of reports that the Dakota Access Pipeline would be unlikely to be shut down. In the first quarter of 2021, Phillips 66 Partners LP (NYSE: PSXP) had an EPS of $0.73, beating estimates by $0.22, while its revenue of $376 million missed estimates by $1.69 million. The company has a gross profit margin of 65.92%. Additionally, the stock has a forward PE ratio of 11.6 and has gained 51.25% in the past 6 months and year to date.
By the end of the first quarter of 2021, 5 hedge funds out of the 866 tracked by Insider Monkey held stakes in Phillips 66 Partners LP (NYSE: PSXP), worth about $45.2 million. This is compared to 4 hedge fund holders in the previous quarter, holding stakes worth roughly $36.1 million.
1. MPLX LP (NYSE: MPLX)
Number of Hedge Fund Holders: 8
Dividend Yield: 9.29%
MPLX LP (NYSE: MPLX) is an operator of midstream energy infrastructure and logistics assets in the US. The company has two segments: Logistics and Storage, and Gathering and Processing. It ranks 1st on our list of the best high yield dividend stocks under $50.
This February, the CEO of MPLX LP (NYSE: MPLX) mentioned that the company might see excess cash this year, which can be used to buy its shares back. In the first quarter of 2021, MPLX LP (NYSE: MPLX) had an EPS of $0.67, beating estimates by $0.06. The company’s revenue was $2.34 billion, up 135.79% year over year, and beat estimates by $201.37 million, and it also has a gross profit margin of 61.22%. The stock has a forward PE ratio of 10.41 and has gained 34.77% in the past 6 months and year to date.
By the end of the first quarter of 2021, 8 hedge funds out of the 866 tracked by Insider Monkey held stakes in MPLX LP (NYSE: MPLX), worth about $136 million. This is compared to 13 hedge fund holders in the previous quarter, holding stakes worth roughly $142 million.
Miller/Howard Investments, an investment management firm, mentioned MPLX LP (NYSE: MPLX) in its first-quarter 2021 investor letter. Here’s what they said:
“Lastly, we added MPLX LP (MPLX) in the with-MLP version. MLPX pays a high dividend and is cheap relative to similar pipeline companies… We increased our weight in MPLX LP (MPLX) which provides exposure to Permian volumes and northeast natural gas volumes. In addition, the company’s FCF yield was above the portfolio’s FCF yield.”
See also 10 Best Dividend Stocks Under $20 and Top 10 Dividend Stocks That Pay Monthly.
