In this article, we will be taking a look at 5 dividend stocks people buy for early retirement. To read our detailed analysis of dividend investing, you can go directly to see the 15 Dividend Stocks People Buy for Early Retirement.
5. Credit Suisse X-Links Silver Shares Covered Call ETN (NASDAQ: SLVO)
Number of Hedge Fund Holders: N/A
Dividend Yield: 6.8%
Credit Suisse X-Links Silver Shares Covered Call ETN (NASDAQ: SLVO), an exchange-traded fund (ETF), is next on our list of dividend stocks people buy for early retirement, ranking 5th. The ETF works to track the performance of the Credit Suisse NASDAQ Silver FLOWS 106 Index.
In the past year, the price return for Credit Suisse X-Links Silver Shares Covered Call ETN (NASDAQ: SLVO) was -24.37%, compared to the S&P 500’s price return of 33.52%. The ETF’s total return was 2.57%, compared to the S&P 500’s total return of 10.40%.
4. Altria Group, Inc. (NYSE: MO)
Number of Hedge Fund Holders: 47
Dividend Yield: 7.1%
Altria Group, Inc. (NYSE: MO) is a producer and distributor of oral tobacco products cigarettes, operating across the globe. It is one of the largest companies in the industry, and ranks 4th on our list of dividend stocks people buy for early retirement.
Analysts at Stifel, this July, reiterated a Buy rating and $56 price target on shares of Altria Group, Inc. (NYSE: MO).
In the second quarter of 2021, Altria Group, Inc. (NYSE: MO) had an EPS of $1.23, beating estimates by $0.06. The company’s revenue was $5.61 billion, up 10.90% year over year and beating estimates by $250.80 million. Altria Group, Inc. (NYSE: MO) has gained 5.86% in the past 6 months and 23.90% year to date.
By the end of the second quarter of 2021, 47 hedge funds out of the 873 tracked by Insider Monkey held stakes in Altria Group, Inc. (NYSE: MO) worth roughly $948 million. This is compared to 38 hedge funds in the previous quarter with a total stake value of approximately $1.1 billion.
Broyhill Asset Management, an investment management firm, mentioned Altria Group, Inc. (NYSE: MO) in its second-quarter 2021 investor letter. Here’s what they 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.”
3. AT&T Inc. (NYSE: T)
Number of Hedge Fund Holders: 68
Dividend Yield: 7.7%
AT&T Inc. (NYSE: T) is the largest telecommunications company in the world, and is based in America. It is next on our list of dividend stocks people buy for early retirement, ranking 3rd.
RBC Capital just this July placed a Sector Perform rating on shares of AT&T Inc. (NYSE: T) alongside a $30 price target on the stock.
In the second quarter of 2021, AT&T Inc. (NYSE: T) had an EPS of $0.89, beating estimates by $0.09. The company’s revenue was $44.05 billion, up 7.56% year over year and beating estimates by $1.32 billion.
By the end of the second quarter of 2021, 68 hedge funds out of the 873 tracked by Insider Monkey held stakes in AT&T Inc. (NYSE: T) worth roughly $2.9 billion. This is compared to 63 hedge funds in the previous quarter with a total stake value of approximately $2.7 billion.
2. Annaly Capital Management, Inc. (NYSE: NLY)
Number of Hedge Fund Holders: 19
Dividend Yield: 10.3%
Annaly Capital Management, Inc. (NYSE: NLY), a diversified capital manager and real estate investment trust, invests in residential and commercial assets. The company ranks 2nd on our list of dividend stocks people buy for early retirement.
Keefe Bruyette reiterated a Market Perform rating on shares of Annaly Capital Management, Inc. (NYSE: NLY) this June.
In the second quarter of 2021, Annaly Capital Management, Inc. (NYSE: NLY) had an FFO of $0.30, beating estimates by $0.02. The company’s revenue was $239.77 million, missing estimates by $185.72 million. Annaly Capital Management, Inc. (NYSE: NLY) has gained 3.52% year to date and 14.67% in the past year.
By the end of the second quarter of 2021, 19 hedge funds out of the 873 tracked by Insider Monkey held stakes in Annaly Capital Management, Inc. (NYSE: NLY) worth roughly $98.2 million. This is compared to 15 hedge funds in the previous quarter with a total stake value of approximately $140 million.
1. Global X NASDAQ 100 Covered Call ETF (NASDAQ: QYLD)
Number of Hedge Fund Holders: N/A
Dividend Yield: 11.4%
Global X NASDAQ 100 Covered Call ETF (NASDAQ: QYLD) is another ETF on our list of dividend stocks people buy for early retirement, and ranks 1st. The fund tracks the performance of the CBOE NASDAQ-100 BuyWrite V2 Index, using the full replication technique.
In the past year, the price return for Global X NASDAQ 100 Covered Call ETF (NASDAQ: QYLD) was 7.61%, compared to the S&P 500’s price return of 33.52%. The fund’s total return was 20.99%, compared to the S&P 500’s 10.40% total return. Global X NASDAQ 100 Covered Call ETF (NASDAQ: QYLD) has gained 1.45% in the past 6 months and 1.59% year to date.
See also 10 Best Alternative Fuel Stocks to Buy Now and 10 Best Dividend Stocks on Robinhood.
