In this article, we discuss 5 high-yield but safe dividend stocks to buy now. If you want to read our detailed analysis of dividend stocks and go directly to read 10 High-Yield But Safe Dividend Stocks to Buy Now.
5. Camping World Holdings, Inc. (NYSE:CWH)
Dividend Yield as of July 22: 8.44%
Camping World Holdings, Inc. (NYSE:CWH) is an Illinois-based retail company that specializes in recreational vehicle parts and vehicle services. The company also sells supplies for camping.
At the end of Q1 2022, Camping World Holdings, Inc. (NYSE:CWH) had nearly $140 million available in cash and cash equivalents. The company’s total assets amounted to over $4.7 billion, up from $4.37 billion in the previous quarter. Its free cash flow also remained strong at $542 million and the dividend is protected by a 21% payout ratio. Camping World Holdings, Inc. (NYSE:CWH) offers a quarterly payout of $0.625 per share, raising it by 25% in February. In addition to this, the company also has a history of paying special dividends to shareholders. As of July 22, the stock’s dividend yield came in at 8.44%.
According to Insider Monkey’s database for Q1 2022, 16 hedge funds owned stakes in Camping World Holdings, Inc. (NYSE:CWH), with a collective value of nearly $360 million. In the previous quarter, 22 hedge funds held stakes in the company, worth $386.5 million. With over 5.1 million shares, Abrams Capital Management was the company’s leading shareholder in Q1.
4. Glatfelter Corporation (NYSE:GLT)
Dividend Yield as of July 22: 9.00%
Glatfelter Corporation (NYSE:GLT) is a North Carolina-based manufacturing company that specializes in food and beverage applications, personal hygiene, and packaging products.
In the first quarter of 2022, Glatfelter Corporation (NYSE:GLT) generated $78.5 million in free cash flow, up tremendously from $11.4 million recorded during the same period last year. The company’s total assets came in at over $1.74 billion. Glatfelter Corporation (NYSE:GLT) has been paying dividends for a considerable period of time and raised its dividends consecutively in the last two years. It currently offers a dividend of $0.14 per share every quarter, with a dividend yield of 9.00%, as of July 22.
At the end of Q1 2022, 10 hedge funds in Insider Monkey’s database owned stakes in Glatfelter Corporation (NYSE:GLT), up from 7 in the previous quarter. The collective value of these stakes is over $50 million.
3. OneMain Holdings, Inc. (NYSE:OMF)
Dividend Yield as of July 22: 9.21%
OneMain Holdings, Inc. (NYSE:OMF) is an American financial services holding company that focuses on consumer finance and insurance.
OneMain Holdings, Inc. (NYSE:OMF) started paying dividends in 2019 and has maintained its dividends since then. At the end of March 2022, the company had $640 million available in cash and cash equivalents, up from $541 million in the previous quarter. Its dividend payment seems sustainable, as the cash flow payout ratio stands at 20%. In the last five years, its operating cash flow grew from $1.3 billion to $2.2 billion.
OneMain Holdings, Inc. (NYSE:OMF) pays a quarterly dividend of $0.95 per share, raising it by 35% in February. As of July 22, the stock’s dividend yield came in at 9.21%.
In July, Barclays lowered its price target on OneMain Holdings, Inc. (NYSE:OMF) to $62, highlighting the ongoing inflation and possibility of a recession. However, the firm kept an Overweight rating on the stock.
The number of hedge funds tracked by Insider Monkey owning stakes in OneMain Holdings, Inc. (NYSE:OMF) stood at 37 in Q1, declining from 44 in the previous quarter. The collective value of these stakes is nearly $866 million. Parsifal Capital Management was the largest stakeholder of the Indiana-based company, owning over 2 million shares.
ClearBridge Investments mentioned OneMain Holdings, Inc. (NYSE:OMF) in its Q4 2021 investor letter. Here is what the firm has to say:
“Similar to the energy sector, the financials sector is also trading at very depressed multiples relative to the market. While the sector’s strong fundamentals received some recognition in 2021, it was rewarded with substantially lower valuations than it should have had. Despite earnings growing over 30% and exceeding the overall market’s, financial stock multiples stayed flat and are currently selling at a discount of roughly 9x forward earnings.
Consumer lender OneMain is an excellent representation of the divide between perception and reality. Similar to the market’s outlook on natural gas prices for EQT, the outlook for consumer credit metrics are worse than the current reality. It is inevitable that record-low delinquencies and loss rates will rise. However, the market’s perception of these headwinds to future earnings growth has been excessive. Higher loan losses are just one piece of a larger pie, and we believe that accelerating loan growth and associated operating leverage provides a buffer to allow OneMain to continue to compound earnings for the foreseeable future. Concerns about credit have completely overshadowed these positive drivers and have resulted in the stock trading at just 5x its projected cash earnings for 2022.”
2. Heritage Insurance Holdings, Inc. (NYSE:HRTG)
Dividend Yield as of July 22: 9.72%
Heritage Insurance Holdings, Inc. (NYSE:HRTG) is a Florida-based insurance company that provides personal and commercial residential insurance products to meet consumers’ needs.
In Q1 2022, Heritage Insurance Holdings, Inc. (NYSE:HRTG) returned $6.7 million to shareholders, covering dividends and repurchase of shares. The company had cash and cash equivalents of over $286 million at the end of the quarter, with total assets amounting to nearly $2 billion. Heritage Insurance Holdings, Inc. (NYSE:HRTG) has raised its dividends just once since the inception of its dividend policy in 2015. However, the company maintained its payouts since then and currently offers a quarterly dividend of $0.06 per share. The stock’s yield was recorded at 9.72%, as of the close of July 22.
At the end of Q1 2022, 14 hedge funds tracked by Insider Monkey reported owning stakes in Heritage Insurance Holdings, Inc. (NYSE:HRTG), up from 11 in the previous quarter. These stakes are collectively valued at nearly $21 million, compared with $11.8 million worth of stakes owned by hedge funds in Q4 2021.
1. Ellington Financial Inc. (NYSE:EFC)
Dividend Yield as of July 22: 11.47%
Ellington Financial Inc. (NYSE:EFC) is an American real estate credit company that provides services related to retirement, investment, and insurance planning.
Ellington Financial Inc. (NYSE:EFC) reported cash and cash equivalents of $363.2 million at the end of Q1 2022, compared with $92.6 million in the previous quarter. It distributed dividends worth $11.6 million during the quarter, up from $10.3 million at the end of December 2021. Ellington Financial Inc. (NYSE:EFC) started paying monthly dividends in 2019 and paid quarterly dividends steadily for seven consecutive years before that. It currently offers a monthly payout of $0.15 per share, with a yield of 11.47%, as of July 22.
In July, Keefe Bruyette reduced its book value estimates on mortgage real estate investment trust and downgraded Ellington Financial Inc. (NYSE:EFC) to Market Perform with a $14.75 price target.
Mike Vranos’ Ellington owned stakes worth over $16.4 million in Ellington Financial Inc. (NYSE:EFC), becoming the company’s leading shareholder in Q1 2022. Overall, 7 hedge funds in Insider Monkey’s database owned stakes in the company in Q1, the same as in the previous quarter. The collective value of these stakes is over $25.6 million.
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