In this article, we discuss the 5 blue chip dividend stocks with over 8% yield. If you want to read our detailed analysis of these stocks, go directly to the 10 Blue Chip Dividend Stocks with Over 8% Yield.
5. New Residential Investment Corp. (NYSE:NRZ)
Number of Hedge Fund Holders: 16
Forward Dividend Yield: 8.94%
New Residential Investment Corp. (NYSE:NRZ) is a real estate investment trust that focuses on residential assets. In earnings results for the fourth quarter, posted on November 2, it beat market estimates on earnings per share and revenue by $0.09 and $247 million respectively.
Barclays analyst Mark DeVries recently reinstated coverage of New Residential Investment Corp. (NYSE:NRZ) stock with an Overweight rating and a price target of $13. In an investor note, the analyst appreciated acquisitions of the firm that would help with market exposure.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in New Residential Investment Corp. (NYSE:NRZ) with 2.9 million shares worth more than $32 million.
4. Owl Rock Capital Corporation (NYSE:ORCC)
Number of Hedge Fund Holders: 14
Forward Dividend Yield: 8.81%
Owl Rock Capital Corporation (NYSE:ORCC) is a business development firm based in New York. It recently declared a quarterly dividend of $0.31 per share, in line with previous. The firm has a market cap of $5.5 billion and was founded in 2015.
In early November, The Wall Street Journal reported that Owl Rock Capital Corporation (NYSE:ORCC) was buying PCF Insurance Services from private equity firm HGGC in a deal worth more than $2.2 billion.
At the end of the third quarter of 2021, 14 hedge funds in the database of Insider Monkey held stakes worth $180 million in Owl Rock Capital Corporation (NYSE:ORCC), down from 15 the preceding quarter worth $298 million.
3. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 66
Forward Dividend Yield: 8.62%
AT&T Inc. (NYSE:T) provides telecom, media, and technology services. KeyBanc analyst Brandon Nispel recently upgraded the stock to Sector Weight from Underweight without a price target. The company is one of the largest communications firms in the world with a market cap of $176 billion.
AT&T Inc. (NYSE:T) stock has rallied since the infrastructure bill was passed. Under the bill, hundreds of billions of dollars have been set aside for the buildup of 5G infrastructure across the US, a plan that will directly benefit the telecom firm.
At the end of the third quarter of 2021, 66 hedge funds in the database of Insider Monkey held stakes worth $3.2 billion in AT&T Inc. (NYSE:T), down from 68 in the previous quarter worth $2.8 billion.
In its Q1 2021 investor letter, Nelson Capital Management, an asset management firm, highlighted a few stocks and AT&T Inc. (NYSE:T) was one of them. Here is what the fund said:
“Nelson Capital stayed busy in the first quarter, making several adjustments within our core portfolio. In the communication services sector, we sold AT&T (tkr: T). Over the years, AT&T has made several poor acquisitions, especially in the content realm, leaving the company saddled with debt and unable to change directions.”
2. Broadmark Realty Capital Inc. (NYSE:BRMK)
Number of Hedge Fund Holders: 11
Forward Dividend Yield: 8.55%
Broadmark Realty Capital Inc. (NYSE:BRMK) is a real estate investment trust based in Washington. It has an impressive dividend history and recently declared a monthly dividend of $0.07 per share, in line with previous.
Broadmark Realty Capital Inc. (NYSE:BRMK) was founded in 2010 and has a market cap of $1.3 billion. The 52-week price range of the stock lies between $9.6 and $11.1. The firm recently declared a revenue of $30 million for the third quarter.
At the end of the third quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $71 million in Broadmark Realty Capital Inc. (NYSE:BRMK), down from 12 in the preceding quarter worth $91 million.
1. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 45
Forward Dividend Yield: 8.18%
Altria Group, Inc. (NYSE:MO) makes and sells tobacco products. There are reports that the company is planning to merge with Philip Morris, another tobacco giant. However, the CEO of the latter has dismissed these reports.
Altria Group, Inc. (NYSE:MO) stock has benefited from a surge in cigarette sales in the past few months. The company has a market cap of $80 billion and posted more than $20 billion in revenue last year.
At the end of the third quarter of 2021, 45 hedge funds in the database of Insider Monkey held stakes worth $829 million in Altria Group, Inc. (NYSE:MO), down from 47 in the previous quarter worth $948 million.
In its Q2 2021 investor letter, Broyhill Asset Management, an asset management firm, highlighted a few stocks and Altria Group, Inc. (NYSE:MO) was one of them. Here is what the fund said:
“Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.
MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”
You can also take a peek at 10 Best Medical Stocks Under $10 and 15 Best Warren Buffett Stocks to Buy Now.
