10 Dividend Stocks with Over 7% Yield

Published July 12, 2022 at 9:06 am EDT Updated September 7, 2026 at 11:33 am EDT

In this article, we will be taking a look at 10 dividend stocks with over 7% yield.

With the looming threat of rising interest rates, dividend stocks are becoming the only feasible option for income investors across the globe. Since these stocks also offer shareholders a way to earn passive income while hedging against inflation, they are becoming increasingly popular among investors especially in light of the COVID-19 pandemic.

As such, stocks like Verizon Communications (NYSE:VZ), JPMorgan Chase & Co. (NYSE:JPM), and Johnson & Johnson (NYSE:JNJ), among others, are gaining popularity. Additionally, financial experts such as Daniel Milan, managing partner of Cornerstone Financial Services, are now recommending investors build portfolios with dividend stocks. Milan himself has recommended building portfolios that yield about 3% to 4% or more, with the potential to grow dividends of 5% to 10% annually.

This February the S&P 500 High Yield Dividend Index rose by 2.6% including dividends, according to the Wall Street Journal. In comparison, the broad benchmark brought in a negative total return of 5.8%. Dividend stocks have thus been continuing to outperform non-dividend payers in 2022, with the average dividend stock in the S&P 500 rising by 6.6% compared to non-dividend yielders in January alone. As a result of this outperformance, investors are not only pouring money into individual dividend stocks, but are also investing in funds that buy dividend stocks. In January 2022, a record $7.5 billion was poured into such funds, for instance. This figure was followed by another $2 billion in the first week of February.

Dividend stocks also prove their relative attractiveness in comparison to bond yields. While the benchmark 10-year US Treasury’s yields traded at 1.96% in February, this figure quickly became less attractive for investors when adjusted for future inflation. As a result, real bond yields were brought down to around -0.5%, making dividend stocks the more attractive choice for most income investors.

Photo by Vitaly Taranov on Unsplash

Our Methodology

We have used Insider Monkey’s hedge fund data for the first quarter of 2022 to pick high-yielding dividend stocks that are popular among hedge funds today. The stocks are ranked on the basis of their dividend yields, from the lowest yield to the highest yield. We have also mentioned analyst ratings for the stocks on our list below, ensuring they are mostly positive.

Dividend Stocks with Over 7% Yield

10. Vornado Realty Trust (NYSE:VNO)

Number of Hedge Fund Holders: 24

Dividend Yield: 7.2% as of 9th July

Vornado Realty Trust (NYSE:VNO) is a company operating in the office real estate investment trust industry. The company is a real estate industry leader in sustainability policy. It owns and manages more than 23 million square feet of LEED-certified buildings.

Truist analyst Michael Lewis holds a Buy rating on Vornado Realty Trust shares as of this June.

In the first quarter of 2022, 24 hedge funds were long Vornado Realty Trust, with a total stake value of $196 million. The largest stakeholder in the company is Redwood Capital Management holding 931,901 shares worth about $42.2 million.

Baron Funds, an asset management firm, mentioned Vornado Realty Trust in its second quarter of 2021 investor letter. Here’s what they said:

“Vornado Realty Trust: Vornado is a REIT that owns a high-quality portfolio of office and street retail assets concentrated in New York City. As economic activity improves and employees return to work, we expect leasing and occupancy trends to improve. At its recent price of $47, we believe the shares are attractively valued at a 40% discount to our estimate of net asset value of $78 per share.”

Just like Verizon Communications, JPMorgan Chase & Co., and Johnson & Johnson, Vornado Realty Trust is a dividend stock hedge funds are piling into today.

9. PennantPark Investment Corporation (NASDAQ:PNNT)

Number of Hedge Fund Holders: 13

Dividend Yield: 7.4% as of 9th July

PennantPark Investment Corporation (NASDAQ:PNNT) is next on our list of dividend stocks with over 7% yield. It is a business development company and private equity fund specializing in direct and mezzanine investments in middle-market companies.

This February, PennantPark Investment Corporation initiated a $25 million stock buyback program, to be continued until the end of March 2023. The news was delivered in light of the company’s positive first-quarter results, which proved to be stronger than expected by consensus estimates.

There were 13 hedge funds long PennantPark Investment Corporation in the first quarter of 2022, with a total stake value of $47.8 million. In the previous quarter, seven hedge funds were long the stock with a total stake value of $21.2 million.

8. Franchise Group, Inc. (NASDAQ:FRG)

Number of Hedge Fund Holders: 21

Dividend Yield: 7.7% as of 9th July

Franchise Group, Inc. (NASDAQ:FRG) is a consumer discretionary company owning and operating franchised and franchisable businesses. The company is based in Delaware, Ohio.

This July, DA Davidson analyst Michael Baker reiterated a Buy rating on Franchise Group, Inc. shares.

Franchise Group, Inc. had 21 hedge funds holding stakes in the stock in the first quarter of 2022, with a total stake value of $179 million. Of these funds, Cannell Capital was the largest stakeholder in the company, holding 808,762 shares worth about $33.5 million.

Like Verizon Communications, JPMorgan Chase & Co., and Johnson & Johnson, Franchise Group, Inc. is rising the ranks among dividend stocks in 2022.

7. Pioneer Natural Resources Company (NYSE:PXD)

Number of Hedge Fund Holders: 54

Dividend Yield: 8.01% as of 9th July

Pioneer Natural Resources Company (NYSE:PXD) is an independent oil and gas exploration and production company. The company owns interests in 11 gas processing plants and has reserves of 130 million barrels of oil, 92 million barrels of natural gas liquids, and 462 billion cubic feet of gas. It is one of the top energy dividend stocks with over 7% yield.

Jeanine Wai, a Barclays analyst, holds an Overweight rating on Pioneer Natural Resources Company shares as of this June.

There were 54 hedge funds long Pioneer Natural Resources Company in the first quarter of 2022, with a total stake value of $1.04 billion. Of these funds, the largest stakeholder in the company was Abrams Bison Investments, holding 598,000 shares worth approximately $149.5 million.

Carillon Tower Advisers, an investment management firm, mentioned Pioneer Natural Resources Company in its first quarter of 2022 investor letter. Here’s what they said:

“Pioneer Natural Resources (NYSE:PXD) performed well in a strong energy sector. Pioneer stood out recently with a pledge to return a large majority of free cash flow to shareowners through dividends and stock buybacks, and ended hedging to give shareowners more earnings and dividend potential should oil and gas prices continue to rise.”

6. Southern Copper Corporation (NYSE:SCCO)

Number of Hedge Fund Holders: 16

Dividend Yield: 8.1% as of 9th July

Southern Copper Corporation (NYSE:SCCO) is a materials company engaged in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile.

Matthew Murphy, an analyst at Barclays, holds an Equal Weight rating on Southern Copper Corporation shares as of this June.

There were 16 hedge funds holding stakes in Southern Copper Corporation in the first quarter of 2022, and 19 hedge funds long the stock in the previous quarter. Their total stake values were $406 million and $440 million respectively.

Southern Copper Corporation is a dependable dividend stock pick this year, just like Verizon Communications, JPMorgan Chase & Co., and Johnson & Johnson.

5. Altria Group, Inc. (NYSE:MO)

Number of Hedge Fund Holders: 47

Dividend Yield: 8.7% as of 9th July

Altria Group, Inc. (NYSE:MO) is the next stock on our list of dividend stocks with over 7% yield. It is a tobacco company that manufactures and sells smokeable and oral tobacco products in the US through its subsidiaries.

Deutsche Bank analyst Gerry Gallagher holds a Buy rating on Altria Group, Inc. shares as of this July.

Out of 912 hedge funds in our database, 47 hedge funds were long Altria Group, Inc. in the first quarter of 2022. Their total stake value was $1.9 billion.

4. Lumen Technologies, Inc. (NYSE:LUMN)

Number of Hedge Fund Holders: 30

Dividend Yield: 9.3% as of 9th July

Lumen Technologies, Inc. (NYSE:LUMN) is a communication services company. It provides various integrated products and services under the Lumen, Quantum Fiber, and CenturyLink brands. The company is among the communications stocks that have been gaining so far this year, making it one of the better dividend stocks with over 7% yield.

This May, while major communications stocks like Snap suffered, others like Lumen Technologies, Inc. gained investor attention by rising 13%. The company itself was the best large-cap performer in the communications sector that month.

Our hedge fund data from the first quarter of 2022 shows 30 hedge funds long Lumen Technologies, Inc. in the first quarter of 2022. Their total stake value was $904 million.

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, mentioned Lumen Technologies, Inc. in its fourth quarter of 2021 investor letter. Here’s what they said:

“In a year that saw various times when the stock market acted like the pre-COVID, during-COVID and post-COVID “environments” (not necessarily in that order), the good news was that our two largest holdings – which we feel can thrive in all three of these environments – Lumen and EXOR, were among our top contributors for the year. We believe that both remain underappreciated by the market and offer significant upside from today’s discounted prices.

Lumen (40%, 3.06%; 3%, 0.31%), the global fiber company, was the top contributor for the year. CEO Jeff Storey took two actions this year to substantially increase the business’s value and address the stock’s enormous discount (it trades below 35% of our appraisal value). First, during the third quarter, Lumen sold its Latin American fiber for a good price [9x earnings before interest, taxes and depreciation (EBITDA)] and the weaker half of its US consumer business for an encouraging 5.5x EBITDA. Both multiples came in above our appraisals and demonstrate how cheap the consolidated Lumen RemainCo is today at less than 6x P/FCF and EV/EBITDA. The majority of Lumen’s remaining EBITDA comes from its US Enterprise and Small and Medium Business (SMB) segments, which grow faster than Lumen’s disposed LatAm fiber and are worth higher multiples. The weakest segment of the new Lumen, the western half of Consumer, is superior to the assets the company just sold for 5.5x EBITDA. Second, Storey quickly repurchased 7% of Lumen’s shares, adding meaningfully to value per share and free cash flow per share. When the dispositions close, proceeds will reduce debt meaningfully, putting net debt right at the company’s leverage ratio target even though that target was based on the prior, inferior business mix. We are pleased that our engagement since filing an amended 13D helped the company begin to deliver positive corporate actions. The market has fixated on the potential for another dividend cut, but Lumen’s FCF is more than sufficient to cover the $1/share payout while investing aggressively into high-return, edge-out capex to grow revenues.”

3. Artisan Partners Asset Management Inc. (NYSE:APAM)

Number of Hedge Fund Holders: 17

Dividend Yield: 10.5% as of 9th July

Artisan Partners Asset Management Inc. (NYSE:APAM) is a publicly owned investment manager. The company manages separate client-focused equity and fixed income portfolios, and is among the top dividend stocks with over 7% yield, having raised its yield for three years in a row.

Michael Brown, an analyst at Keefe Bruyette, holds a Market Perform rating on shares of Artisan Partners Asset Management Inc. as of this June.

In the first quarter of 2022, 17 hedge funds were long Artisan Partners Asset Management Inc., with a total stake value of $134 million.

2. Camping World Holdings, Inc. (NYSE:CWH)

Number of Hedge Fund Holders: 16

Dividend Yield: 10.7% as of 9th July

Camping World Holdings, Inc. (NYSE:CWH) is an automotive retail company on our list of dividend stocks with over 7% yield. The company retails recreational vehicles and related products and services through its subsidiaries.

Baird’s Craig Kennison holds an Outperform rating on Camping World Holdings, Inc. shares as of this May.

Insider Monkey’s hedge fund data for the first quarter of 2022 shows 16 hedge funds long Camping World Holdings, Inc. in the first quarter of 2022. In the previous quarter, 22 hedge funds were long the stock. Their total stake values were $359 million and $386 million respectively.

1. Newtek Business Services Corp. (NASDAQ:NEWT)

Number of Hedge Fund Holders: 7

Dividend Yield: 16.5% as of 9th July

Newtek Business Services Corp. (NASDAQ:NEWT) is a business development company that specializes in providing financial and business services to the small and medium-sized business market in the US.

Seven hedge funds were long Newtek Business Services Corp. in the first quarter of 2022. Their total stake value was $31.1 million.

Follow Insider Monkey on Twitter