In this article, we discuss 5 dividend stocks with over 10% yield. If you want to read our detailed analysis of dividend stocks’ past performance and latest trading trends, go directly to read 10 Dividend Stocks with Over 10% Yield.
5. FS KKR Capital Corp. (NYSE:FSK)
Dividend Yield as of June 24: 14.47%
FS KKR Capital Corp. (NYSE:FSK) is an American business development company that provides customized credit solutions to private middle-market companies in the US. In Q1 2022, the company’s net interest income stood at $0.72, which beat estimates by $0.07. In addition to this, its total investment income saw 162.3% year-over-year growth at $396 million.
On May 9, FS KKR Capital Corp. (NYSE:FSK) announced a 7.9% hike in its quarterly dividend to $0.68 per share. The stock’s dividend yield stood at 14.47%, as of the close of June 24.
In March, Wells Fargo upgraded FS KKR Capital Corp. (NYSE:FSK) to Equal Weight, with a $21.50 price target, appreciating the company’s improving credit profile.
According to Insider Monkey’s Q1 database, 13 hedge funds were bullish on FS KKR Capital Corp. (NYSE:FSK), up from 11 in the previous quarter. The collective value of these stakes is over $165.4 million. Beach Point Capital Management was the leading shareholder of the Pennsylvania-based company, owning over 4.4 million shares, valued at $102 million.
4. New York Mortgage Trust, Inc. (NASDAQ:NYMT)
Dividend Yield as of June 24: 15.04%
New York Mortgage Trust, Inc. (NASDAQ:NYMT) is an American real estate investment trust that invests in mortgage-based securities and other financial assets. Though the company missed Street estimates on various accounts in Q1, it reported other key developments in its operations during the quarter. The company purchased approximately $782.5 million in residential loans and also authorized a share repurchase program for up to $200 million on its common stock.
New York Mortgage Trust, Inc. (NASDAQ:NYMT) has not raised its payouts since 2020 and currently pays a quarterly dividend of $0.10 per share. The stock’s dividend yield was recorded at 15.04% on June 24.
In its April investors’ note, Barclays mentioned New York Mortgage Trust, Inc. (NASDAQ:NYMT), highlighting the company’s declining book values per share. The firm lowered its price target on the stock to $3.50 but kept an Equal Weight rating on the shares.
At the end of Q1 2022, New York Mortgage Trust, Inc. (NASDAQ:NYMT) was a part of 12 hedge fund portfolios, compared with 17 a quarter earlier. These stakes hold a consolidated value of over $52 million.
3. Vale S.A. (NYSE:VALE)
Dividend Yield as of June 24: 19.17%
Vale S.A. (NYSE:VALE) is a Brazilian mining company that is involved in the production of iron ore, nickel, and pellets. The company is launching a venture capital to invest over $100 million in sustainable mining startups globally. VALE would hold 3% to 5% stakes in these firms.
In Q1 2022, Vale S.A. (NYSE:VALE) posted an EPS of $0.93, which beat estimates by $0.12. However, the company’s revenue of $10.81 billion missed consensus by $710 million. The company also signed a long-term nickel supply deal with Tesla, according to which, Tesla will purchase nickel from Vale S.A. (NYSE:VALE) mines in Canada.
On February 25, Vale S.A. (NYSE:VALE) announced an interim dividend of $0.73 per share, with a dividend yield of 19.17%, as of June 24. In June, Jefferies mentioned that the mining sector is undervalued and will outperform when China recovers from the pandemic. The firm upgraded Vale S.A. (NYSE:VALE) to Buy, with a $24 price target, up from $17.
At the end of March 31, 27 hedge funds tracked by Insider Monkey were bullish on Vale S.A. (NYSE:VALE), up from 25 in the previous quarter. The combined value of these stakes is over $2.3 billion, compared with $1.7 billion worth of stakes held by hedge funds in Q4 2021. Ken Fisher’s Fisher Asset Management was the company’s leading shareholder in Q1.
Grantham Mayo Van Otterloo & Co. LLC mentioned Vale S.A. (NYSE:VALE) in its Q1 2022 investor letter. Here is what the firm has to say:
“Let’s look at Vale (NYSE:VALE), the world’s largest iron ore producer, as a case study for how shareholders can be rewarded. Vale’s stock price is about where it was at the beginning of last year. Despite the market’s lack of enthusiasm, the company generated about $20 billion of free cash flow last year. Not bad for a company with a market cap of a little over $100 billion and no substantive debt as of the end of March. 4 What did the company do with all that cash? Last year, Vale paid out about $9 billion in regularly scheduled dividends and distributed another $10 billion between extra dividends and share repurchases. Combined with dividends distributed in the first quarter of this year and a recently announced share repurchase, Vale has returned or announced the return of over $33 billion since the beginning of last year, almost a 32% yield relative to the market cap of the company. Not a bad way to win.”
2. Star Bulk Carriers Corp. (NASDAQ:SBLK)
Dividend Yield as of June 24: 26.28%
Star Bulk Carriers Corp. (NASDAQ:SBLK) is a shipping company that owns and operates a fleet of dry bulk career vessels. The company is based in Greece. It reported strong Q1 earnings, posting an EPS of $1.71, which surpassed estimates by $0.32. Moreover, its revenue of $360.8 million saw an 80% year-over-year growth and also exceeded consensus by $84.6 million.
On May 24, Star Bulk Carriers Corp. (NASDAQ:SBLK) announced a quarterly payout of $1.65 per share, trimming it by 17%. The stock’s dividend yield came in at 26.28%, as of June 24. In April, Jefferies presented a positive outlook on the shipping sector, as it delivered a 25% year-to-date return to shareholders through April. The firm reinstated its coverage on Star Bulk Carriers Corp. (NASDAQ:SBLK) with a Buy rating and a $36 price target.
As per Insider Monkey’s database, 21 hedge funds owned stakes in Star Bulk Carriers Corp. (NASDAQ:SBLK) in Q1, compared with 20 a quarter earlier. These stakes hold a consolidated value of over $1.1 billion.
Massif Capital mentioned Star Bulk Carriers Corp. (NASDAQ:SBLK) in its Q3 2021 investor letter. Here is what the firm has to say:
“We initiated one long position, one short position and exited one position during the third quarter. Our new long position was in Star Bulk Carriers (SBLK), a pure-play dry bulk operator with roughly 120 controlled vessels and 14 million tons of combined cargo capacity globally.
SBLK has one of the better management teams in the maritime shipping industry and the lowest cost structure among all dry bulk names. After announcing their new dividend policy in May, SBLK now has one of the best payout structures in shipping. The firm has paid out $0.3 and $0.7 per share in dividends for the first and second quarters of 2021. SBLK will most likely announce a dividend for the third quarter somewhere in the $1.15-$1.25 per
share range, depending on movement in net working capital.We believe the best way to look at this business is through cash generation potential and how much is returned to investors. The current equity valuation does not reflect current rates for shipping (earnings), partly because of the velocity of the move in rates and because shipping cycles turn, and it’s not clear whether this is a local top or the early innings of a multi-year cycle. Our belief is the latter. Part of our catalyst is the market re-rating the stock higher once the length of the increased earnings power becomes understood. It is a relatively strong catalyst in the sense that with a strong dividend policy, we can be patient for the market to underwrite this story as the cash is either returned to us via a high dividend yield if the market is either slow or chooses not to join our side of the trade.
Our estimates suggest a time-charter equivalent rate (net profit or loss of operating a vessel daily) of at least $30,000 for SBLK in Q4, with the firm earning a potential annual average of $26,000. Our base case is that this is a strong floor going into next year, with little need to articulate much more upside. If rates hold, which we expect them to do, we could see a 20+% annual dividend year next year for SBLK. If the market priced the equity such that the dividend yield was 8%, that implies a $62 stock. Today our base case target for the firm is $37 per share. This is likely conservative as we know that third-quarter rates are higher than the second quarter, and third-quarter dividends will most likely reflect that. We are cautious about diving too deep into the sensitivities to the upside with this position as we are arriving at some pretty remunerative torque using current contracted values and seemingly conservative forecasts…” (Click here to see the full text)
1. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Dividend Yield as of June 24: 22%
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is an Israeli integrated cargo shipping company that specializes in the transportation of oil and finished goods. On June 17, the stock rose 6% as JPMorgan raised its price target on the stock to $53.30, with a Neutral rating on the shares.
As of Q1 2022, 32 hedge funds tracked by Insider Monkey reported owning stakes in ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), valued at over $1 billion. In the previous quarter, 33 funds held positions in the company, with stakes valued at $784 million. Jim Simons’ Renaissance Technologies was the company’s leading shareholder in Q1, owning over 4 million shares, worth $295.3 million.
In Q1 2022, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) reported an EPS of $14.19, which beat estimates by $1.38. The company’s revenue for the quarter stood at $3.7 billion, showing a 113.8% year-over-year growth and also surpassing consensus by $230 million. In addition to this, its operating income of $2.24 billion reported a 228% growth from the same period last year.
On May 18, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) announced a quarterly payout of $2.85 per share, which represented 20% of the company’s quarterly net income.
You can also take a look at 12 Best Bear Market Stocks to Buy Now and Top Stock Picks of Michael Burry.
