In this article, we discuss 5 undervalued dividend stocks with over 10% yield. If you want to look at more high-yield undervalued stocks, click 10 Undervalued Dividend Stocks with Over 10% Yield.
5. Ellington Financial Inc. (NYSE:EFC)
Dividend Yield as of May 13: 12.07%
Number of Hedge Fund Holders: 7
P/E Ratio as of May 13: 9.39
Ellington Financial Inc. (NYSE:EFC) was incorporated in 2007 and is based in Old Greenwich, Connecticut. The company manages mortgage-related financial assets including residential mortgage-backed securities, residential mortgage loans, commercial mortgage-backed securities, commercial mortgage loans, and collateralized loan obligations. The company announced on April 18 its estimated book value per share of $17.74 as of March 31, 2022. The revenue of $51.07 million outperformed estimates by $228,000.
On May 13, Ellington Financial Inc. (NYSE:EFC)’s dividend yield stood at 12.07%. It is one of the highest yielding real estate investment trusts. Ellington Financial Inc. (NYSE:EFC) declared on May 2 a $0.15 per share monthly dividend, in line with previous. The dividend is distributable on June 27, for shareholders of record on May 31.
According to Insider Monkey’s Q4 database, 7 hedge funds reported owning stakes in Ellington Financial Inc. (NYSE:EFC), collectively worth $39.5 million. Billionaire Leon Cooperman’s Omega Advisors is the biggest shareholder of the company, with 860,000 shares valued at $14.6 million.
4. Eagle Bulk Shipping Inc. (NASDAQ:EGLE)
Dividend Yield as of May 13: 12.58%
Number of Hedge Fund Holders: 12
P/E Ratio as of May 13: 4.49
Eagle Bulk Shipping Inc. (NASDAQ:EGLE) is a Connecticut-based transporter of dry bulk cargoes via ocean and sea. The company moves iron ore, coal, grains, fertilizers, steel, petcoke, cement, and forest products. Eagle Bulk Shipping Inc. (NASDAQ:EGLE)’s dividend yield on May 13 stood at 12.58%. Eagle Bulk Shipping Inc. (NASDAQ:EGLE) declared on May 12 a $2.00 per share quarterly dividend, which is payable on May 25, to shareholders of the company as of May 16.
On May 5, Eagle Bulk Shipping Inc. (NASDAQ:EGLE) reported earnings for the first quarter of 2022. The company posted an EPS of $4.97, beating market estimates by $0.46. The revenue of $140.77 million jumped 101.22% year-over-year, outperforming analysts’ predictions by $10.85 million.
H.C. Wainwright analyst Magnus Fyhr on May 9 reiterated a Buy recommendation on Eagle Bulk Shipping Inc. (NASDAQ:EGLE) and raised the price target on the stock to $90 from $80. The analyst contended that the company reported “strong fixtures” for Q2 and trades at an attractive valuation.
According to the fourth quarter database of Insider Monkey, 12 hedge funds were long Eagle Bulk Shipping Inc. (NASDAQ:EGLE), compared to 13 funds in the last quarter. The total stakes owned in Q4 exceeded $203 million. Howard Marks’ Oaktree Capital Management is the largest shareholder of the company, with 3.78 million shares worth $172 million.
3. Golden Ocean Group Limited (NASDAQ:GOGL)
Dividend Yield as of May 13: 25.96%
Number of Hedge Fund Holders: 10
P/E Ratio as of May 13: 5.29
Golden Ocean Group Limited (NASDAQ:GOGL) is a shipping company that owns and operates a fleet of dry bulk vessels, transporting bulk commodities like ores, coal, grains, and fertilizers. Golden Ocean Group Limited (NASDAQ:GOGL)’s dividend yield on May 13 stood at 25.96%. With a price to earnings ratio of 5.29, it is a significant undervalued dividend stock to watch.
Golden Ocean Group Limited (NASDAQ:GOGL) on February 16 declared a $0.90 per share quarterly dividend, a 5.9% increase from its last dividend of $0.85. The dividend was distributed to shareholders on March 10.
On March 8, Golden Ocean Group Limited (NASDAQ:GOGL) announced the sale of three of its oldest Panamax vessels – Golden Empress, Golden Enterprise, and Golden Endeavor, in line with its strategy to operate a modern, fuel efficient fleet with lower carbon emissions. The company sold the three vessels for $52 million, and expects to record a gain from the disposal of about $9.6 million in Q2, with average net cash proceeds of approximately $30.7 million when the vessels are delivered to purchasers.
Among the hedge funds tracked by Insider Monkey, 10 hedge funds were bullish on Golden Ocean Group Limited (NASDAQ:GOGL) at the end of Q4 2021, with stakes worth about $50 million. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the largest shareholder of the company, with 2.6 million shares valued at $24.2 million.
2. Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN)
Dividend Yield as of May 13: 11.94%
Number of Hedge Fund Holders: 5
P/E Ratio as of May 13: 3.93
Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN) is a Singapore-based international shipping company that owns and operates a fleet of dry bulk carriers and tankers worldwide. Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN)’s dividend yield on May 13 stood at 11.94%.
On March 9, Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN) declared a $0.72 per share quarterly dividend, in line with previous. The dividend was distributed on March 22, to shareholders of the company as of March 11.
Jefferies analyst Christopher Robertson reinstated coverage of Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN) on April 27 with a Buy rating, raising the price target to $26 from $24. The analyst noted that the Jefferies shipping index is up about 25% year-to-date, primarily due to the recent equity performance in the dry bulk and tanker space. He remains optimistic about supply-side marine shipping fundamentals as he reinstated coverage of the sector at the firm.
According to the fourth quarter database of Insider Monkey, 5 hedge funds were long Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN), holding stakes in the company worth about $11 million.
1. Ready Capital Corporation (NYSE:RC)
Dividend Yield as of May 13: 11.76%
Number of Hedge Fund Holders: 13
P/E Ratio as of May 13: 6.22
Ready Capital Corporation (NYSE:RC) is a New York-based real estate finance company that manages a portfolio that operates via SBC Lending and Acquisitions, Small Business Lending, and Residential Mortgage Banking segments. The company’s Q1 revenue of $151.2 million climbed 35.5% year-over-year, topping analysts’ predictions by $10.29 million.
BTIG transferred coverage of Ready Capital Corporation (NYSE:RC) to analyst Eric Hagen from analyst Timothy Hayes. The analyst maintained a Buy recommendation and an $18.50 price target on the stock on March 11.
On March 15, Ready Capital Corporation (NYSE:RC) declared a $0.42 per share quarterly dividend, in line with previous. The dividend was distributed on April 29, to shareholders of record on March 31. Ready Capital Corporation (NYSE:RC)’s dividend yield on May 13 came in at 11.76%.
Among the hedge funds tracked by Insider Monkey, 13 funds were bullish on Ready Capital Corporation (NYSE:RC) at the end of December 2021, with total stakes worth $50.25 million. Thomas Steyer’s Farallon Capital held the largest position in the company, with more than 1 million shares valued at about $17 million.
You can also take a look at 10 European Defense Stocks to Buy Now and 10 Oil Tanker Stocks That Pay Dividends.
