In this article, we will be taking a look at 5 high-yield dividend stocks with payout ratio less than 55%. To read our detailed analysis of dividend investing, you can go directly to see the 10 High-Yield Dividend Stocks with Payout Ratio Less than 55%.
5. AGNC Investment Corp. (NASDAQ: AGNC)
Number of Hedge Fund Holders: 19
Dividend Yield: 9.06%
Payout Ratio: 39.4%
AGNC Investment Corp. (NASDAQ: AGNC), an American real estate investment trust, focuses on residential mortgage pass-through securities and collateralized mortgage obligations. The company ranks 5th on our list of high-yield dividend stocks with payout ratio less than 55% and funds its investments with the help of collateralized borrowings in the form of repurchase agreements.
As of this July, Barclays analyst Mark DeVries holds an Overweight rating on shares of AGNC Investment Corp. (NASDAQ: AGNC) alongside a price target of $17.
In the second quarter of 2021, AGNC Investment Corp. (NASDAQ: AGNC) had an FFO of $0.76, beating estimates by $0.11. The company’s revenue was $232 million, missing estimates by $90.23 million. AGNC Investment Corp. (NASDAQ: AGNC) has gained 3.31% year to date 14.06% past year.
By the end of the second quarter of 2021, 19 hedge funds out of the 873 tracked by Insider Monkey held stakes in AGNC Investment Corp. (NASDAQ: AGNC) worth roughly $151 million. This is compared to 18 hedge funds in the previous quarter with a total stake value of approximately $167 million.
4. Two Harbors Investment Corp. (NYSE: TWO)
Number of Hedge Fund Holders: 30
Dividend Yield: 10.4%
Payout Ratio: 38.1%
Two Harbors Investment Corp. (NYSE: TWO), invests in, finances, and manages residential mortgage-backed securities and related financial assets in America. This real estate investment trust ranks 4th on our list of high-yield dividend stocks with payout ratio less than 55%.
As of this June, Credit Suisse has a Hold rating on shares of Two Harbors Investment Corp. (NYSE: TWO) alongside a $7.50 price target.
In the second quarter of 2021, Two Harbors Investment Corp. (NYSE: TWO) had an FFO of $0.19, beating the previous quarter’s FFO of $0.17. The company’s revenue was $19.04 million, missing estimates by $24.47 million. Two Harbors Investment Corp. (NYSE: TWO) has gained 1.13% year to date and 14.47% in the past year.
By the end of the second quarter of 2021, 30 hedge funds out of the 873 tracked by Insider Monkey held stakes in Two Harbors Investment Corp. (NYSE: TWO) worth roughly $160 million. This is compared to 32 hedge funds in the previous quarter with a total stake value of approximately $200 million.
3. Western Asset Mortgage Capital Corporation (NYSE: WMC)
Number of Hedge Fund Holders: 12
Dividend Yield: 8.79%
Payout Ratio: 37%
Western Asset Mortgage Capital Corporation (NYSE: WMC) works to acquire, invest in, finance, and manage a portfolio of agency and non-agency residential mortgage-backed securities and commercial mortgage-back securities, asset-backed securities investments, residential whole-loans, residential bridge loans, securitized commercial loans, and a range of other financial assets. The company ranks 3rd on our list of high-yield dividend stocks with payout ratio less than 55%.
In the second quarter of 2021, Western Asset Mortgage Capital Corporation (NYSE: WMC) had an EPS of $, beating estimates by $. The company’s revenue was $, up % year over year and beating estimates by $. Western Asset Mortgage Capital Corporation (NYSE: WMC) has gained 20.80% in the past year.
By the end of the second quarter of 2021, 12 hedge funds out of the 873 tracked by Insider Monkey held stakes in Western Asset Mortgage Capital Corporation (NYSE: WMC) worth roughly $15 million. This is compared to 8 hedge funds in the previous quarter with a total stake value of approximately $15.1 million.
2. Annaly Capital Management, Inc. (NYSE: NLY)
Number of Hedge Fund Holders: 19
Dividend Yield: 10.45%
Payout Ratio: 36.9%
Annaly Capital Management, Inc. (NYSE: NLY) is a diversified capital manager that invests in and finances residential and commercial assets. The company ranks 2nd on our list of high-yield dividend stocks with payout ratio less than 55%.
As of this June, Bose George, an analyst at Keefe Bruyette, holds a Market Perform rating on shares of Annaly Capital Management, Inc. (NYSE: NLY). The analyst also holds a $9.50 price target on the company’s shares.
In the second quarter of 2021, Annaly Capital Management, Inc. (NYSE: NLY) had an FFO of $0.30, beating estimates by $0.02. The company’s revenue was $239.77 million, missing estimates by $185.72 million. Annaly Capital Management, Inc. (NYSE: NLY) has gained 0.72% in the past 6 months and 2.31% year to date.
By the end of the second quarter of 2021, 19 hedge funds out of the 873 tracked by Insider Monkey held stakes in Annaly Capital Management, Inc. (NYSE: NLY) worth roughly $98.2 million. This is compared to 15 hedge funds in the previous quarter with a total stake value of approximately $140 million.
1. Dynex Capital, Inc. (NYSE: DX)
Number of Hedge Fund Holders: 9
Dividend Yield: 9.02%
Payout Ratio: 27.9%
Dynex Capital, Inc. (NYSE: DX) is yet another mortgage real estate investment trust and is last on our list of high-yield dividend stocks with payout ratio less than 55%. The company works to invest in mortgage-backed securities on a leveraged basis primarily in America.
Eric Hagen, an analyst at BTIG, holds a Buy rating on shares of Dynex Capital, Inc. (NYSE: DX) as of November. The analyst also holds a $19 price target on the shares.
In the second quarter of 2021, Dynex Capital, Inc. (NYSE: DX) had an FFO of $0.51, beating estimates by $0.04. The company’s revenue was $12.12 million, missing estimates by $2.96 million. Dynex Capital, Inc. (NYSE: DX) has gained 9.56% in the past year.
By the end of the second quarter of 2021, 9 hedge funds out of the 873 tracked by Insider Monkey held stakes in Dynex Capital, Inc. (NYSE: DX) worth roughly $27 million. This is compared to 8 hedge funds in the previous quarter with a total stake value of approximately $24 million.
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