In this article, we discuss 5 safe dividend stocks with over 5% yield. If you want to read our detailed analysis of other dividend stocks, go directly to read 10 Safe Dividend Stocks With Over 5% Yield.
5. Kinder Morgan, Inc. (NYSE:KMI)
Dividend Yield as of June 21: 6.92%
Kinder Morgan, Inc. (NYSE:KMI) deals in energy infrastructure and operates approximately 83,000 miles of pipelines and 141 terminals. In May, The Federal Energy Regulatory Commission approved the company’s 13-mile pipeline, which would connect existing SNG systems in Louisiana and Mississippi.
Kinder Morgan, Inc. (NYSE:KMI) reported strong first-quarter earnings, posting an EPS of $0.32, which beat estimates by $0.04. Moreover, its revenue of $4.29 billion also surpassed consensus by $540 million. In May, Truist initiated its coverage of Kinder Morgan, Inc. (NYSE:KMI) with a Buy rating and a $22 price target, appreciating the company’s CO2 segment earnings and strong demand for natural gas.
On April 20, Kinder Morgan, Inc. (NYSE:KMI) announced a 2.8% hike in its quarterly dividend to $0.2775 per share. Since 2015, the company has reduced its net debt by more than $11 billion, which signals its strong balance sheet. The company has raised its dividends for 5 years in a row. As of June 21, the stock’s dividend yield stood at 6.92%.
At the end of March 2022, 40 hedge funds tracked by Insider Monkey owned stakes in Kinder Morgan, Inc. (NYSE:KMI), up from 39 in the previous quarter. The consolidated value of these stakes is nearly $1.35 billion. Among these hedge funds, FPR Partners owned over 16 million shares in the Texas-based company, becoming its largest shareholder in Q1.
4. Main Street Capital Corporation (NYSE:MAIN)
Dividend Yield as of June 21: 7.24%
Main Street Capital Corporation (NYSE:MAIN) is an American investment firm that provides long-term debt and equity capital to lower middle-market companies. In Q1 2022, the company reported a net interest income of $0.77, topping analysts’ estimates by $0.07. Moreover, its total investment income of $79.4 million saw a 26.4% growth from the same period last year.
Main Street Capital Corporation (NYSE:MAIN) pays monthly dividends to shareholders and has periodically raised its regular monthly payouts since its IPO in 2007. On May 3, the company announced a monthly dividend of $0.215 per share and a supplemental dividend of $0.075 per share. The stock’s dividend yield came in at 7.24%, as of June 21.
In March, Hovde Group initiated its coverage of Main Street Capital Corporation (NYSE:MAIN) with a Market Perform rating and a $44 price target.
At the end of Q1 2022, 9 hedge funds tracked by Insider Monkey owned stakes in Main Street Capital Corporation (NYSE:MAIN), the same as in the previous quarter. These stakes hold a combined value of $48.4 million. Ken Griffin and Israel Englander were some prominent shareholders of the company in Q1.
3. Enterprise Products Partners L.P. (NYSE:EPD)
Dividend Yield as of June 21: 7.93%
Enterprise Products Partners L.P. (NYSE:EPD) is a Texas-based midstream natural gas and crude oil pipeline company. In May, CNBC’s commentator called the stock one of the safest options in this current environment and was placed as a final trade. The stock is up 7.99% year-to-date, as of the close of June 21.
In Q1 2022, Enterprise Products Partners L.P. (NYSE:EPD) reported its crude oil transportation volume at 2.2 million bbl/day, up from 1.9 million bbl/day a year earlier. Moreover, the company’s revenue of $13 billion saw a 41.9% year-over-year growth. Following the company’s strong Q1 results, Truist lifted its price target on Enterprise Products Partners L.P. (NYSE:EPD) to $30 in May, with a Buy rating on the shares.
Enterprise Products Partners L.P. (NYSE:EPD) currently offers a quarterly payout of $0.465 per share, increasing it by 3% in January. The company maintains a 23-year track record of consistent dividend growth. The stock’s dividend yield was recorded at 7.93% on June 21.
As of the quarter ended in March, 19 hedge funds in Insider Monkey’s database owned stakes in Enterprise Products Partners L.P. (NYSE:EPD), down from 21 in the previous quarter. The consolidated value of these stakes is over $177.5 million. With stakes worth $84.5 million, First Eagle Investment Management was the company’s leading shareholder in Q1.
2. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of June 21: 7.95%
Altria Group, Inc. (NYSE:MO) is an American manufacturing company that specializes in the production of tobacco, cigarettes, and other related products. In Q1 2022, the company reported an EPS of $1.12, which beat market estimates by $0.03. For FY22, the company expects its EPS to fall in the range of $4.79 to $4.93, which implies a growth rate of 4% to 7% from 2021.
Altria Group, Inc. (NYSE:MO) currently offers a quarterly payout of $0.90 per share, with a dividend yield of 7.95%, as of June 21. The company has raised its dividends 56 times in the past 52 years, which makes it one of the safest dividend stocks. In June, Morgan Stanley appreciated the long-term growth of Altria Group, Inc. (NYSE:MO), but expressed concerns about the ‘growing competitive environment’. Given this, the firm downgraded the stock to Underweight, with a $50 price target.
The number of hedge funds tracked by Insider Monkey owning stakes in Altria Group, Inc. (NYSE:MO) grew to 47 in Q1 2022, from 39 in the previous quarter. The collective value of these stakes is roughly $2 billion, as compared with $1.05 billion worth of stakes held by hedge funds in Q4 2021.
Broyhill Asset Management also mentioned Altria Group, Inc. (NYSE:MO) in its Q2 2021 investor letter. Here is what the firm had to say:
“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.”
1. Arbor Realty Trust, Inc. (NYSE:ABR)
Dividend Yield as of June 21: 11.82%
Arbor Realty Trust, Inc. (NYSE:ABR) is an American real estate investment trust that provides loan origination services for multifamily, senior housing, and other commercial buildings. The company pays a quarterly dividend of $0.38 per share, raising it for the 7th consecutive year in February. The stock’s dividend yield stood at 11.82%, as of the close of June 21.
In Q1 2022, Arbor Realty Trust, Inc. (NYSE:ABR) delivered stronger than expected results, posting an EPS of $0.55, which topped estimates by $0.11. Its net interest income fell in line with the consensus at $84.1 million and showed 71.9% year-over-year growth. In April, Piper Sandler initiated its coverage of Arbor Realty Trust, Inc. (NYSE:ABR) with an Overweight rating and a $20 price target. The firm appreciated the company’s diversified revenue model and earnings growth.
As per Insider Monkey’s database, 14 hedge funds owned stakes in Arbor Realty Trust, Inc. (NYSE:ABR) in Q1, worth $92.5 million. In the previous quarter, 13 hedge funds held positions in the company, with stakes valued at roughly $100 million.
You can also take a look at Top Stock Picks of Michael Burry and 10 Low Beta Dividend Stocks with High Yields
