In this article, we discuss 5 high-yield dividend stocks popular on Robinhood. If you want to see more stocks in this selection, click 10 High-Yield Dividend Stocks Popular on Robinhood.
5. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 71
Dividend Yield as of May 20: 3.84%
Exxon Mobil Corporation (NYSE:XOM) is a Texas-based provider of crude oil and natural gas in the United States and internationally. The company has a rich dividend history. Exxon Mobil Corporation (NYSE:XOM) has paid a dividend to shareholders for 100 years, and its increasing dividends stretch back to 39 consecutive years. The company posted a revenue of $90.50 billion for Q1 2022, above consensus by $5.62 billion.
Exxon Mobil Corporation (NYSE:XOM) declared on April 27 a $0.88 per share quarterly dividend, in line with previous. The dividend is payable on June 10, to shareholders of the company as of May 13. Exxon Mobil Corporation (NYSE:XOM) is one of the most popular high yield dividend stocks popular on Robinhood, yielding 3.84% as of May 20.
Exxon Mobil Corporation (NYSE:XOM) on May 19 signed an agreement with subsidiaries of BKV Corporation for the sale of operated and non-operated Barnett Shale gas assets in Texas for $750 million, with additional payments based on future natural gas prices. Citi analyst Alastair Syme on May 19 raised the firm’s price target on Exxon Mobil Corporation (NYSE:XOM) to $90 from $80 and kept a Neutral rating on the shares after the Q1 results.
Among the hedge funds tracked by Insider Monkey, 71 funds were long Exxon Mobil Corporation (NYSE:XOM) in Q4 2021, up from 64 funds in the prior quarter. In Q1 2022, Rajiv Jain’s GQG Partners held a significant position in Exxon Mobil Corporation (NYSE:XOM), with 51.80 million shares worth $4.2 billion.
Here is what Goehring & Rozencwajg Associates has to say about Exxon Mobil Corporation (NYSE:XOM) in its Q3 2021 investor letter:
“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.
What should Chevron expect?
It was recently reported by The Wall Street Journal that Exxon was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publicly expressed concerns about both projects.
According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”
4. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 39
Dividend Yield as of May 20: 7.07%
Altria Group, Inc. (NYSE:MO) is an American producer of smokable and oral tobacco products. Altria Group, Inc. (NYSE:MO) posted its Q1 results on April 28, reporting earnings per share of $1.12, above Street estimates by $0.03. The $4.82 billion revenue missed market consensus by $56.68 million. Altria Group, Inc. (NYSE:MO) is a notable dividend payer, with an 11-year history of consistently rising dividend payments.
On May 19, Altria Group, Inc. (NYSE:MO) declared a $0.90 per share quarterly dividend, in line with previous. The dividend is distributable on July 11, to shareholders of the company as of June 15. Altria Group, Inc. (NYSE:MO)’s dividend yield of 7.07% lies significantly above the consumer staples average yield of 1.89%.
Deutsche Bank analyst Steve Powers raised the firm’s price target on Altria Group, Inc. (NYSE:MO) to $60 from $54 and reiterated a Buy rating on the shares following the Q1 results.
Among the hedge funds tracked by Insider Monkey in Q4 2021, 39 funds were long Altria Group, Inc. (NYSE:MO), down from 45 funds in the last quarter. The Q1 2022 filings reveal that Harris Associates is a notable stakeholder of the company, with a position worth over $397 million.
Here is what Broyhill Asset Management has to say about Altria Group, Inc. (NYSE:MO) in its Q2 2021 investor letter:
“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. Prospect Capital Corporation (NASDAQ:PSEC)
Number of Hedge Fund Holders: 9
Dividend Yield as of May 20: 9.72%
Prospect Capital Corporation (NASDAQ:PSEC) is one of the highest yielding dividend stocks popular on Robinhood, with a dividend yield of 9.72% as of May 20. Prospect Capital Corporation (NASDAQ:PSEC) is a business development company that specializes in leveraged buyouts, refinancing, acquisitions, recapitalizations, growth capital, collateralized loan obligations, marketplace lending, and bridge transactions.
On May 10, Prospect Capital Corporation (NASDAQ:PSEC) declared a $0.06 per share monthly dividend, in line with previous. The dividend is payable on June 21, to shareholders of the company at the close of business on May 27.
Prospect Capital Corporation (NASDAQ:PSEC) reported earnings for Q1 on May 9, posting an EPS of $0.22, topping analysts’ predictions by $0.04. Revenue for the period grew 13.78% year-over-year to $181.43 million, exceeding market consensus by $10.56 million.
In Q4 2021, Insider Monkey’s database found Prospect Capital Corporation (NASDAQ:PSEC) to be part of 9 hedge fund portfolios, up from 7 funds in the earlier quarter. At the conclusion of the first fiscal quarter of 2022, John Overdeck and David Siegel’s Two Sigma Advisors disclosed an $11.15 million stake in Prospect Capital Corporation (NASDAQ:PSEC).
2. New Residential Investment Corp. (NYSE:NRZ)
Number of Hedge Fund Holders: 19
Dividend Yield as of May 20: 9.44%
New Residential Investment Corp. (NYSE:NRZ) is an American real estate investment trust that operates through Origination, Servicing, MSR Related Investments, Residential Securities, Properties and Loans, Consumer Loans, Mortgage Loans, and Corporate segments. New Residential Investment Corp. (NYSE:NRZ) delivers a dividend yield of 9.44% as of May 20 and it is one of the top high yield dividend stocks trading on Robinhood. The company paid on April 29 a dividend of $0.25 per share for the first quarter 2022.
On May 3, New Residential Investment Corp. (NYSE:NRZ) announced its Q1 financial results, posting an EPS of $0.37, beating market estimates by $0.02. The revenue grew 47.70% from the prior-year quarter to $1.73 billion, outperforming analysts’ predictions by almost $653 million.
Piper Sandler analyst Kevin Barker on May 5 downgraded New Residential Investment Corp. (NYSE:NRZ) to Neutral from Overweight with an unchanged price target of $12. The analyst believes the stock is fairly valued, but he sees better opportunities to generate share returns within the mortgage origination/servicing sector that are less sensitive to rate movements.
According to Insider Monkey’s Q4 database, 19 hedge funds were long New Residential Investment Corp. (NYSE:NRZ), compared to 16 funds in the last quarter. In Q1 2022, Arrowstreet Capital reported a prominent position in the company, with 2.6 million shares worth $28.7 million.
1. Invesco Mortgage Capital Inc. (NYSE:IVR)
Number of Hedge Fund Holders: 10
Dividend Yield as of May 20: 21.05%
Invesco Mortgage Capital Inc. (NYSE:IVR) is a Georgia-based real estate investment trust that primarily invests in mortgage-backed securities and other mortgage-related assets. Invesco Mortgage Capital Inc. (NYSE:IVR)’s dividend yield on May 20 stood at 21.05%, making it perhaps the highest-yielding dividend stock popular on Robinhood. The company distributed a quarterly dividend of $0.09 per share to shareholders on April 27.
Invesco Mortgage Capital Inc. (NYSE:IVR)’s Q1 results were reported on May 4. The company posted earnings per share of $0.12, beating market consensus by $0.03. The revenue jumped 29.20% year-over-year to $53.84 million, outperforming estimates by $7.45 million.
On April 27, Barclays analyst Mark DeVries lowered the price target on Invesco Mortgage Capital Inc. (NYSE:IVR) to $2 from $3 and kept an Underweight rating on the shares. According to the analyst, book values are expected to drop notably for the mortgage real estate investment trusts in Q1, given rising rates and volatile mortgage spreads impacting portfolio values. The analyst remains cautious on the sub-sector owing to the likelihood of further spread volatility.
In the fourth quarter of 2021, 10 hedge funds reported owning stakes in Invesco Mortgage Capital Inc. (NYSE:IVR), collectively worth $19.1 million. Billionaire Ken Griffin’s Citadel Investment Group held a leading stake in the company in the first quarter of 2022, consisting of 3.14 million shares worth $7.16 million.
You can also take a look at 10 Safe Stocks To Invest in For The Long-Term in 2022 and 10 Best Long-Term Dividend Stocks with Over 4% Yield.
