In this article, we discuss the 5 cheap dividend stocks with high yields. If you want to read our detailed analysis of the these dividend stocks, go directly to 10 Cheap Dividend Stocks with High Yields.
5. FS KKR Capital Corp. (NYSE:FSK)
Number of Hedge Fund Holders: 11
Dividend Yield: 11.17%
Share Price (as of March 7): $22.56
FS KKR Capital Corp. (NYSE:FSK) is a business development company which specializes in debt securities. It primarily invests in senior secured loans, as well as the subordinated debt of private middle market companies in the US. As of March 7, FS KKR Capital Corp. (NYSE:FSK) saw its share price rise 15.63% in the last 12 months, and 7.74% in the year to date.
FS KKR Capital Corp. (NYSE:FSK) posted a quarterly dividend of $0.63 per share on February 28, signaling a 1.6% increase from its previous dividend of $0.62, and payable to shareholders as of April 4. FS KKR Capital Corp. (NYSE:FSK) reported strong figures for its Q4 earnings. EPS was recorded at $0.75, outperforming estimates by $0.15. Quarterly revenue stood at $364 million, up $19.45 million as compared to analysts’ predictions.
On March 2, Wells Fargo analyst Finian O’Shea upgraded FS KKR Capital Corp. (NYSE:FSK) to an ‘Equal Weight’ rating from ‘Underweight’, and also upped the price target to $21.50 from $19.50. O’Shea sees a likely improvement in the company’s credit profile and relative stability in its net operating income.
Beach Point Capital Management was the top shareholder in FS KKR Capital Corp. (NYSE:FSK) at the end of the fourth quarter, with a stake comprising of more than 6 million shares worth roughly $127 million. In addition to Beach Point, 10 other hedge funds were long FS KKR Capital Corp. (NYSE:FSK) in Q4, with combined stakes worth $164 million.
4. USA Compression Partners, LP (NYSE:USAC)
Number of Hedge Fund Holders: 1
Dividend Yield: 11.74%
Share Price (as of March 7): $17.88
USA Compression Partners, LP (NYSE:USAC) boasts an impressive dividend yield of 11.74%, and ranks next on our list of cheap dividend stocks with high yields. It operates as a provider of natural gas compression services to oil companies and independent producers in the United States.
As of March 7, USA Compression Partners, LP (NYSE:USAC) recorded a 22.89% increase in share price in the last 12 months, and a 17.86% jump in the last 6 months. The company declared a quarterly dividend of $0.525 per share on January 13, which fell in-line with previous.
The number of operational rigs in the US are set to increase at a quick pace in 2022, and USA Compression Partners, LP (NYSE:USAC) is set to see its earnings rise as a result. Waiting times for new compressors are lengthy due to global supply chain issues, and USA Compression Partners, LP (NYSE:USAC) can fulfil this gap in the market, owing to its 20% idle capacity.
Out of all the hedge funds tracked by Insider Monkey, Citadel Investment Group was the sole shareholder in USA Compression Partners, LP (NYSE:USAC) in the fourth quarter, with 57,000 shares valued at $998,000.
3. Green Plains Partners LP (NASDAQ:GPP)
Number of Hedge Fund Holders: 3
Dividend Yield: 12.93%
Share Price (as of March 7): $13.61
Green Plains Partners LP (NASDAQ:GPP) is a US-based company which provides fuel storage and transportation services. The firm declared a quarterly dividend of $0.44 per share on January 21, up 1.1% from its previous dividend of $0.43. This was payable to shareholders on February 11.
As of March 7, the share price of Green Plains Partners LP (NASDAQ:GPP) saw an increase of 22.83% in the last 12 months, whilst rising 2.64% in the last 6 months.
As of the fourth quarter, 3 out of 924 elite hedge funds tracked by Insider Monkey held positions in Green Plains Partners LP (NASDAQ:GPP), with a combined value of $32.7 million. The same number of hedge funds were bullish on the firm in Q3 2021. No Street Capital of Jeff Osher held roughly 2 million shares in Green Plains Partners LP (NASDAQ:GPP), worth $29.5 million. This represented 4.75% of the fund’s overall holdings in the fourth quarter.
2. Vale S.A. (NYSE:VALE)
Number of Hedge Fund Holders: 25
Dividend Yield: 13.00%
Share Price (as of March 7): $20.60
Vale S.A. (NYSE:VALE) is a Brazilian company which deals in the production of iron ore, pellets, manganese, and iron alloys for use in the steelmaking industry.
On March 2, Vale S.A. (NYSE:VALE) was upgraded to ‘Buy’ from ‘Hold’ by research firm HSBC, on the back of elevated metal prices. With Western nations refusing to import Russian mineral resources, Vale S.A. (NYSE:VALE) is set to enjoy another period of sustained growth. As of March 7, it gained 16.12% in the last 12 months, and 19.98% in the last month. Vale S.A. (NYSE:VALE) recorded earnings per share of $1.46 in the fourth quarter, outperforming estimates by $0.65.
Vale S.A. (NYSE:VALE) was recorded in the portfolio of 25 hedge funds in the fourth quarter, with aggregate positions of $1.71 billion. This is down from 27 hedge funds in Q3 2021, holding stakes worth $1.97 billion. Fisher Asset Management held almost 31 million shares in Vale S.A. (NYSE:VALE) in Q4, worth $434.3 million, making him the top shareholder in the Brazilian firm.
Miller Value Partners, an investment firm, discussed Vale S.A. (NYSE:VALE) in its investor letter for Q3 2021. It said:
“Vale (VALE) was the top detractor over the quarter, falling 32.6% in sympathy with iron ore’s 48% decline from record highs on China capacity curbs and growing fears of financial issues within the property sector. Vale reported Q2 EBITDA of $11.24Bn, slightly below consensus of $11.47Bn on higher than expected iron ore cash costs. Free cash flow of $6.5Bn (35% annualized yield) came in well ahead of expectations, driving $2.6Bn of stock buybacks and a 1H21 dividend of $7.6Bn, implying year-to-date (YTD) shareholder returns of roughly $13.8Bn (19% of the current market cap). Management maintained FY21 production guidance for iron ore of 315-335 Metric tons (Mt) and lowered year-end 2022 exit capacity to 370Mt (from 400Mt) due to Northern System licensing delays. Additionally, the company hosted their annual Investor Day, outlining new production initiatives aimed at becoming a key supplier to steelmakers in light of decarbonization goals.”
1. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Number of Hedge Fund Holders: 26
Dividend Yield: 14.73%
Share Price (as of March 7): $13.36
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) ranks 1st on out list of cheap dividend stocks with a high yield, with its dividend yield coming in at 14.73% as of March 7. The firm is based in Brazil, and is one of the largest oil producers in the world.
Investor sentiment is up on Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR), as 26 hedge funds were long on the company shares in the fourth quarter, up from 23 in the quarter before. GQG Partners, a leading shareholder in Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR), upped its stake in the firm by 9% in Q4, bringing it to roughly 187 million shares worth an astounding $2.06 billion.
In December, Goldman Sachs analyst Bruno Amorim upgraded Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) to ‘Buy’ from ‘Neutral’ with a price target of $14.20, noting that he sees a positive risk/reward for the company heading into 2022. As of March 7, the firm has gained a whopping 72.16% in the last 12 months, and 21.68% in the year to date.
You can also take a look at 10 Best Consumer Finance Stocks To Buy Now and 10 Blue Chip Dividend Stocks Hedge Funds Are Buying.
