In this article, we will take a look at 10 dividend stocks with over 8% yield.
A report put forward by Global X suggests that high-yielding dividend stocks have generated an annual dividend yield of 6.4%. The report was compiled based on the highest paying dividend stocks between the years 1960 and 2017. Among other key findings of the study, it was also identified that in 7 out of 10 rising interest rate periods since 1960, stocks that came with high yields outperformed the S&P 500, which suggests dividend stocks to be robust in changing economic conditions. Moreover, the stocks that were part of this study were found to have outperformed the S&P 500 by approximately 3% on an annual basis.
According to The Power of Dividends, a report by Hartford Funds, 84% of the total return of the S&P 500 Index can be attributed to reinvested dividends and compounding since 1970. Moreover, the report also shows that between the years 1930 and 2020, high-yielding dividend stocks outperformed the S&P 500 index by 77.8% of the time while low-yielding stocks managed to outperform the S&P 500 index by about 44.4% of the time.
Apart from dividend investing being a source of passive income, dividend stocks have helped investors keep their chins up and head high in these volatile times. Some of the most popular dividend stocks include AbbVie Inc. (NYSE:ABBV), Medtronic plc (NYSE:MDT), Johnson & Johnson (NYSE:JNJ), and the Procter & Gamble Company (NYSE:PG). These companies are dubbed as the “dividend aristocrats” since they have consistently announced dividend hikes for over 25 years.
Our Methodology
We, at Insider Monkey, keep track of data for 867 elite hedge funds as of the third quarter of 2021. For the purpose of this list, we have scoured hedge fund portfolios to find dividend stocks with yields of over 8%. We have populated our list of the 10 dividend stocks with over 8% yield with stocks that are highly popular among these hedge funds and investor circles today.
Dividend yield data is as of December 3.
For each stock, we have mentioned its yield, along with its hedge fund sentiment. We have ranked these stocks by their respective dividend yields. We have also included analyst ratings to further help our readers determine which stocks are soaring, so our readers can make informed investment decisions.
With this context in mind, let’s take a look at the 10 dividend stocks with over 8% yield.
Dividend Stocks With Over 8% Yield
10. Orchid Island Capital Inc (NYSE:ORC)
Number of Hedge Fund Holders: 10
Dividend Yield as of December 3: 17%
ORC is a specialty finance company that invests in residential mortgage-backed securities on a leveraged basis. The company is a high-yield dividend stock. In November, Orchid Island Capital (NYSE:ORC) declared a $0.065 per share monthly dividend, in line with previous.
9. Broadmark Realty Capital Inc. (NYSE:BRMK)
Number of Hedge Fund Holders: 11
Dividend Yield as of December 3: 9.21%
Broadmark Realty Capital Inc. (NYSE:BRMK) engages in the underwriting, funding, servicing, and managing a portfolio of the short-term and first deed of trust loans to fund the construction, development, and investment in residential or commercial properties in the United States. The company was founded in 2010 and is headquartered in Seattle, Washington. This November, Broadmark Realty Capital Inc. declared a monthly dividend of $0.07 per share, in line with the previous. The dividend is payable by December 15th, for shareholders of record November 30th.
Insider Monkey was able to identify 11 hedge funds that had stakes in Broadmark Realty Capital Inc. worth $71.52 million by the end of the third quarter of 2021.
Broadmark Realty Capital Inc. reported its fiscal third-quarter earnings this September. The company’s revenue for the quarter was valued at $30.59 million, up 5.56% year over year from $28.98 million. Broadmark Realty Capital Inc. also reported earnings per share of $0.16 for the quarter.
Farallon Capital is the majority shareholder in Broadmark Realty Capital Inc. as of September 30th, 2021. According to the September filings, Farallon Capital owns over 4.95 million shares of stock of the company, which are worth $48.86 million.
Broadmark Realty Capital Inc. is a dividend stock to consider investing in. Other renowned dividend stocks are AbbVie Inc., Medtronic plc (NYSE:MDT), Johnson & Johnson, and the Procter & Gamble Company.
8. Dynex Capital, Inc. (NYSE:DX)
Number of Hedge Fund Holders: 7
Dividend Yield as of December 3: 9.30%
Dynex Capital, Inc. (NYSE:DX) is a mortgage real estate investment trust that invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. The stock has a forward price-to-earnings ratio of 8.59, and a dividend yield of 9.30% as of December 3rd. Dynex Capital, Inc. was founded in 1987 and is headquartered in Virginia.
By the end of the third quarter of 2021 Insider Monkey was tracking 867 hedge funds, out of which 7 held stakes in Dynex Capital, Inc.. The total value of these stakes was approximately $12.99 million. Marshall Wace LLP had the most stakes in Dynex Capital, Inc. at the end of the third quarter of 2021. The fund owns over 296,000 shares of the stock, which are worth $5.12 million.
Dynex Capital, Inc. beat on EPS for the fiscal third quarter of 2021. The company reported earnings per share of $0.54 and generated $14.39 million in revenues.
7. AGNC Investment Corp. (NASDAQ:AGNC)
Number of Hedge Fund Holders: 16
Dividend Yield as of December 3: 9.31%
AGNC Investment Corp. (NASDAQ:AGNC) operates as a real estate investment trust (REIT) in the United States. The stock has a forward price-to-earnings ratio of 5.24, and a dividend yield of 9.31% as of December 3rd. AGNC Investment Corp. was incorporated in 2008 and is headquartered in Bethesda, Maryland.
AGNC Investment Corp. generated $279 million in revenues for the fiscal third quarter of 2021. The company also reported earnings per share of $0.75, beating EPS estimates by $0.10.
By the end of the third quarter, 16 hedge funds held stakes in AGNC Investment Corp. worth $81.49 million. Canyon Capital Advisors was the top stakeholder as of this September, having stakes of more than $52.7 million in the company’s stock which covered 1.85% of the fund’s 13F portfolio.
In addition to AbbVie Inc., Medtronic plc (NYSE:MDT), Johnson & Johnson, and the Procter & Gamble Company, AGNC is a popular dividend stock among hedge funds.
6. Blackrock Capital Investment Corporation (NASDAQ:BKCC)
Number of Hedge Fund Holders: 8
Dividend Yield as of December 3: 9.41%
BlackRock Capital Investment Corporation (NASDAQ:BKCC) operates as a business development company that specializes in investments in middle-market companies. The fund invests in all industries.
Blackrock Capital Investment Corporation reported its earnings this September. For the fiscal third quarter of 2021, Blackrock Capital Investment Corporation beat on EPS and revenues. The company reported earnings per share of $0.15, beating estimates by $0.06, and generated revenues of $12.51 million beating revenue estimates by over $139,000. The stock has a forward yield of 9.41%, and a forward PE ratio of 15.36.
By the end of the third quarter of 2021, 8 hedge funds in our database were found to hold stakes in Blackrock Capital Investment Corporation amounting to $6.83 million. Of these 8 positions, the majority stakes are attributed to Two Sigma Advisors, which had $2.63 million invested in Blackrock Capital Investment Corporation.
5. PennyMac Mortgage Investment Trust (NYSE:PMT)
Number of Hedge Fund Holders: 10
Dividend Yield as of December 3: 10.43%
PennyMac Mortgage Investment Trust (NYSE:PMT) operates as a specialty finance company that primarily invests in mortgage-related assets in the United States. The company operates through the following segments: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, and Correspondent Production. The stock has a forward PE ratio of 9.85, and a forward yield of 10.43% as of December 3rd. PennyMac Mortgage Investment Trust was founded in 2009 and is headquartered in California.
This September, B. Riley analyst Matt Howlett initiated coverage of PennyMac Mortgage Investment Trust and gave it a Buy rating along with a $23 price target.
Insider Monkey found PennyMac Mortgage Investment Trust to be a part of 10 hedge fund portfolios by the end of the third quarter of 2021. The total stakes of these funds in PennyMac Mortgage Investment Trust were roughly $7.38 million. Ken Griffin’s Citadel Investment Group is the lead stakeholder in the company as of September 30th, and has stakes of up to $2.38 million.
4. Falcon Minerals Corporation (NASDAQ:FLMN)
Number of Hedge Fund Holders: 19
Dividend Yield as of December 3: 10.50%
Falcon Minerals Corporation (NASDAQ:FLMN) acquires and owns mineral, royalty, and overriding royalty interests in oil and natural gas properties in North America.
This October, Piper Sandler analyst Pearce Hammond raised his price target on Falcon Minerals Corporation to $6.50 from $5 and reiterated an Overweight rating on the shares.
For the fiscal third quarter of 2021, Falcon Minerals Corporation reported earnings per share of $0.11, and beat estimates by $0.04. The company generated $19.21 million in revenues for the quarter, up from $9.67 million last year, which shows a 98.72% gain year-over-year. The stock’s forward price-to-earnings ratio is 29.94 and has a forward yield of 10.50% as of 3rd December.
By the end of the third quarter of 2021, Falcon Minerals Corporation was present in 19 hedge fund portfolios whose total stakes in the company amounted to $43.88 million, up from $42.8 million in the prior quarter. Nantahala Capital Management owned the most shares of Falcon Minerals Corporation by September end and had stakes of over $11.7 million in the oil corporation.
3. Ellington Financial Inc. (NYSE:EFC)
Number of Hedge Fund Holders: 10
Dividend Yield as of December 3: 10.58%
Ellington Financial Inc. (NYSE:EFC) acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets in the United States. The company was incorporated in 2007 and is headquartered in Connecticut.
This September, Ellington Financial Inc. reported third-quarter results for 2021. The company reported earnings per share of $0.46 and turned over revenues of $40.15 million.
Out of the 867 funds being tracked by Insider Monkey, 10 hedge funds held stakes in Ellington Financial Inc. worth $58.99 million by the end of the third quarter of 2021. This is compared to 7 positions in the second quarter, with stakes of $45.14 million.
Israel Englander’s Millennium Management had the most stakes in Ellington Financial Inc. out of the 10 positions by the end of the third quarter. Millennium Management’s stakes in the company are valued at $21.15 million, up from $3.17 million in the prior quarter.
2. Annaly Capital Management, Inc. (NYSE:NLY)
Number of Hedge Fund Holders: 15
Dividend Yield as of December 3: 10.72%
Annaly Capital Management, Inc. (NYSE:NLY) acts as a diversified capital manager that invests in and finances residential and commercial assets. The company has elected to be taxed as a real estate investment trust (REIT). The stock has a forward yield of 10.72% and a PE ratio of 7.16 as of December 3rd. Annaly Capital Management, Inc. was founded in 1996 and is based in New York, New York.
Annaly Capital Management, Inc. reported its third-quarter earnings this September. The company’s EPS for the fiscal third quarter of 2021 was reported to be $0.28, beating estimates by $0.01, and the company’s revenue came out at $308.12 million.
Ken Griffin’s Citadel Investment Group owned the most shares of Annaly Capital Management, Inc. at the end of the third quarter of 2021. According to the September SEC 13F filings, Mr. Griffin’s stake in the REIT is currently $18.67 million, up from $17.25 million in the previous quarter.
Other than Citadel Investment Group, there were 14 other positions identified by Insider Monkey that held stakes in Annaly Capital Management, Inc. at the end of the third quarter of 2021. The total stake value of these hedge funds was approximately $34.94 million.
1. Two Harbors Investment Corp. (NYSE:TWO)
Number of Hedge Fund Holders: 31
Dividend Yield as of December 3: 11.31%
Two Harbors Investment Corp. (NYSE:TWO) operates as a real estate investment trust (REIT).
Two Harbors Investment Corp. reported earnings per share of $0.24, beating estimates by $0.04 for the fiscal third quarter of 2021. The company turned over revenues that amounted to $14.16 million for the same quarter. As of December 3rd, the stock has a forward yield of 11.31% and a forward price-to-earnings ratio of 7.37.
By the end of the third quarter of 2021, 31 hedge funds had stakes in Two Harbors Investment Corp.. The total value of these stakes was $155.64 million. Of these 31 positions, HBK Investments was the leading stakeholder in Two Harbors Investment Corp.. According to the September filings, HBK Investments’ stake in the company was an astounding $56.33 million, which accounts for 0.25% of the firm’s 13F portfolio.
You can also take a look at 10 High Dividend Stocks With Over 8% Yield and 12 Best Long-Term Dividend Stocks To Buy Now
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This article is originally published at Insider Monkey.
