In this article, we discuss the 5 Best Stocks to To Increase Your Dividend Income. If you want to read about some more dividend stocks, go directly to 10 Best Stocks to To Increase Your Dividend Income.
5. BHP Group (NYSE:BHP)
Number of Hedge Fund Holders: 20
Dividend Yield: 11.09%
BHP Group (NYSE:BHP) is a diversified metals and mining firm. On April 6, the company announced that it had secured enough renewable energy supply to power three nickel mine operations in Australia from 2024. For two of these operations, the power supply comes from a wind energy deal with Enel Green Power of Italy. Last year, the company had signed an agreement with EV maker Tesla to supply the latter with nickel from mining operations in Western Australia.
On April 21, Citi analyst Ephrem Ravi upgraded BHP Group (NYSE:BHP) stock to Buy from Neutral and raised the price target to GBP 3,200 from GBP 2,750, noting that the cash flow generation of the firm was up strongly and backing it to continue outperforming the market.
In its Q1 2021 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and BHP Group (NYSE:BHP) was one of them. Here is what the fund said:
“Our purchase of Australian mining company BHP Group (NYSE:BHP) is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP Group (NYSE:BHP) from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”
4. Genco Shipping & Trading Limited (NYSE:GNK)
Number of Hedge Fund Holders: 16
Dividend Yield: 21%
Genco Shipping & Trading Limited (NYSE:GNK) engages in the ocean transportation of dry bulk cargoes. On March 8, the company declared a quarterly dividend of $0.67 per share, an increase of close to 350% from the previous dividend of $0.15 per share. The board of directors of the firm have also approved a new dividend policy heading into 2022. Under the policy, the quarterly payouts will be calculated using a new formula that includes dividends from 2021 and estimates for earnings in 2022.
On February 24, Genco Shipping & Trading Limited (NYSE:GNK) posted earnings for the fourth quarter of 2021, reporting earnings per share of $1.99, beating estimates by $0.05. The revenue over the period was $183 million, up 91% year-on-year.
3. Vale S.A. (NYSE:VALE)
Number of Hedge Fund Holders: 27
Dividend Yield: 9.26%
Vale S.A. (NYSE:VALE) makes and sells steel products.
On March 3, HSBC analyst Jonathan Brandt upgraded Vale S.A. (NYSE:VALE) stock to Buy from Hold and raised the price target to $21.50 from $17.25, noting that the metal prices were on a path to be stronger for longer given supply issues and higher inflation.
2. Chimera Investment Corporation (NYSE:CIM)
Number of Hedge Fund Holders: 14
Dividend Yield: 14.22%
Chimera Investment Corporation (NYSE:CIM) operates as a real estate investment trust.
In early January, Barclays analyst Mark DeVries raised the price target on Chimera Investment Corporation (NYSE:CIM) stock to $14 from $11 and kept an Underweight rating, backing a strong economy and housing market to drive solid fundamentals for the firm.
At the end of the third quarter of 2022, 14 hedge funds in the database of Insider Monkey held stakes in the company.
1. Two Harbors Investment Corp. (NYSE:TWO)
Number of Hedge Fund Holders: 28
Dividend Yield: 16.95%
Two Harbors Investment Corp. (NYSE:TWO) is a real estate investment trust that focuses on residential mortgage-backed securities. The company has a solid dividend history stretching back more than ten years. The industry median in this regard is just five years.
On April 25, JPMorgan analyst Richard Shane maintained a Neutral rating on Two Harbors Investment Corp. (NYSE:TWO) stock with a price target of $5, noting that a reduction of central activity in the activity in the mortgage backed security market should accelerate the normalization process for the real estate sector.
You can also take a peek at 12 Best Environmental Stocks to Invest In and 10 Best Nickel Stocks to Buy Now.
