In this article, we discuss 5 high-yield dividend stocks to buy in July. If you want to read our detailed analysis of dividend stocks and their performance, go directly to 10 High-Yield Dividend Stocks to Buy in July.
5. Philip Morris International Inc. (NYSE:PM)
Dividend Yield as of July 13: 5.33%
Philip Morris International Inc. (NYSE:PM) sells and markets tobacco products in over 180 countries and is the second-largest seller of tobacco in the world.
On June 17, Philip Morris International Inc. (NYSE:PM) declared a quarterly dividend of $1.25 per share, consistent with the previous dividend. The company has been raising its dividend each year since it went public in 2008. In the past ten years, the company has raised its dividend by 56.4%, which makes it one of the best high-yield dividend stocks. Though its payout ratio is currently set at 80%, Philip Morris International Inc. (NYSE:PM) expects to stabilize its payout ratio in the upcoming quarters. In Q1 2022, the company generated operating cash flow of around $10 billion, which shows that it is well-positioned to carry out its operations smoothly.
At the end of Q1 2022, 55 of the hedge funds that are monitored by Insider Monkey’s database owned stakes in Philip Morris International Inc. (NYSE:PM), valued at over $6.6 billion. In comparison, 47 hedge funds held positions in the New York-based company in the previous quarter, with stakes valued at roughly $6.2 billion.
4. Universal Corporation (NYSE:UVV)
Dividend Yield as of July 13: 5.79%
Universal Corporation (NYSE:UVV) is a Virginia-based tobacco merchant that specializes in contracting, financing, and processing leaf tobacco for sale.
Universal Corporation (NYSE:UVV) has a solid dividend history, raising its payout every year since 1971. In Q1 2022, the company paid $76.4 million in dividends, up from $75 million paid during the same period last year. Moreover, it also grew its net income in Q1 to $103.6 million, from $96.3 million in the prior-year quarter. On May 25, Universal Corporation (NYSE:UVV) announced a 1.3% hike in its quarterly dividend to $0.79 per share, which equates to a yield of 5.79% as of July 13.
As per Insider Monkey’s Q1 2022 database, 10 hedge funds held investments in Universal Corporation (NYSE:UVV), up from 7 in the previous quarter. Those investments were collectively valued at over $85.6 million. With 890,281 UVV shares, Pzena Investment Management held the largest position in the Virginia-based company in Q1.
3. Northwest Bancshares, Inc. (NASDAQ:NWBI)
Dividend Yield as of July 13: 6.27%
Northwest Bancshares, Inc. (NASDAQ:NWBI) is an Ohio-based savings bank that provides personal and business banking solutions.
Northwest Bancshares, Inc. (NASDAQ:NWBI) currently pays a quarterly dividend of $0.20 per share, with shares yielding 6.27% as of July 13. Based on its Q1 results, the company has a relatively high payout ratio of 90% but a dividend cut is not expected due to its strong financials. Moreover, the company also reached a payout of 100% in both 2020 and 2016 but managed to grow its dividends in those years as well. Northwest Bancshares, Inc. (NASDAQ:NWBI) has made dividend payments for the past 110 quarters while maintaining a 13-year track record of consistent dividend growth.
In July, B. Riley expressed concerns regarding rising interest rates, which pose risk to loan growth and credit. In light of this, the firm lowered its price target on Northwest Bancshares, Inc. (NASDAQ:NWBI) to $11 with a ‘Neutral’ rating on the shares.
At the end of March 2022, Northwest Bancshares, Inc. (NASDAQ:NWBI) was a part of 12 hedge funds’ portfolios, down from 13 in the previous quarter, according to Insider Monkey’s database. The consolidated value of the stakes held by those 12 hedge funds stood at over $12.5 million. Ken Griffin, D E Shaw, and Ryan Tolkin were some of the company’s major shareholders in Q1.
2. Enbridge Inc. (NYSE:ENB)
Dividend Yield as of July 13: 6.32%
Enbridge Inc. (NYSE:ENB) is a Canadian energy infrastructure company that has a delivery network of crude oil, natural gas, and renewable energy.
In Q1 2022, Enbridge Inc. (NYSE:ENB) reported a 14.3% year-over-year growth in its operating cash flow to C$2.93 billion. Its free cash flow of C$1.46 billion was not sufficient for dividend coverage of C$1.7 billion during the quarter, which pushed its payout ratio to 84.3%. However, the company has raised its dividend payments for the past 27 years and expects to continue with this practice in the coming years as well. Enbridge Inc. (NYSE:ENB) currently offers a quarterly payout of C$0.86 per share, which provides a yield of 6.32% as of July 13.
In May, both RBC Capital and National Bank lifted their price targets on Enbridge Inc. (NYSE:ENB), to C$65 and C$60, respectively.
Rajiv Jain’s GQG Partners was the largest shareholder of Enbridge Inc. (NYSE:ENB) in Q1, owning a stake worth over $2 billion. In addition to this, 24 hedge funds tracked by Insider Monkey’s database reported owning stakes in the company, valued at nearly $2.4 billion.
ClearBridge Investments mentioned Enbridge Inc. (NYSE:ENB) in its Q3 2021 investor letter. Here is what the firm had to say:
“We are meaningfully overweight energy, particularly within North American energy infrastructure. Enbridge and Williams, our two infrastructure holdings, possess crown jewel infrastructure assets. They each deliver meaningful proportions of the overall energy produced and consumed in North America. Their revenues are backed by long-term contracts with high-quality counterparties and have little direct commodity price exposure. Their growth has been driven by the increasing production of North American energy. The advent of unconventional oil and gas production (oil sand and shale) has made North America a low-cost competitor on a global basis. We expect strong North American production to be an enduring feature of global energy supply for decades to come.”
1. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of July 13: 8.51%
Altria Group, Inc. (NYSE:MO) is a Virginia-based manufacturing company, specializing in the production of tobacco, cigarettes, and related products. The stock rose 1.41% on July 11, gaining investors’ attention due to having the second-highest yield in the S&P 500 index.
Altria Group, Inc. (NYSE:MO)’s strong dividend history makes it one of the best high-yield dividend stocks, as the company has managed to raise its dividend 56 times over the past 52 years. The company’s payout ratio of 74% is below its goal of 80%, which shows that it’s well positioned for its 2022 dividend raise. Altria Group, Inc. (NYSE:MO) ended Q1 with over $5.3 billion available in cash and cash equivalents, up from $4.5 billion a quarter earlier. Currently, it offers a quarterly payout of $0.90 per share, which yields 8.51% as of July 13.
In June, Morgan Stanley upgraded Altria Group, Inc. (NYSE:MO) to ‘Equal Weight’, appreciating the company’s strong fundamentals. The firm kept a $43 price target on the stock.
According to Insider Monkey’s Q1 database, 47 hedge funds owned stakes in Altria Group, Inc. (NYSE:MO), up from 39 in the previous quarter. Those 47 stakes held a collective value of approximately $2 billion.
You can also take a look at Top Stock Picks of Michael Burry and 10 Low Beta Dividend Stocks with High Yields
