Dividend Capture Strategy: 5 High-Yield Stocks to Buy in February

In this article, we discuss 5 high-yield stocks to buy in February. If you want to read our detailed analysis on dividend capture strategy and past performance of high dividend stocks, go directly to read Dividend Capture Strategy: 10 High-Yield Stocks to Buy in February. 

5. Shell plc (NYSE:SHEL)

Ex-Dividend Date: February 16
Dividend Yield as of February 6: 3.89%

Shell plc (NYSE:SHEL) is a London-based multinational oil and gas company that also specializes in petrochemicals. On February 2, the company declared a 15% hike in its quarterly dividend to $0.575/ADS per share. The stock will be trading ex-dividend on February 16. As of February 6, the stock has a dividend yield of 3.89%, coming through as one of the high-yield stocks on our list.

In December, Piper Sandler maintained an Overweight rating on Shell plc (NYSE:SHEL) with a $70 price target, appreciating the company’s outperformance in the last two years.

In Q4 2022, Shell plc (NYSE:SHEL) reported revenue of $101.3 billion, up 18.8% from the same period last year. The company’s operating cash flow for the quarter came in at $22.4 billion and its free cash flow stood at $15.4 billion. It returned $6.3 billion to shareholders in dividends during the quarter.

As of the close of Q3 2022, 39 hedge funds in Insider Monkey’s database owned stakes in Shell plc (NYSE:SHEL), the same as in the previous quarter. The collective value of these stakes is over $3.1 billion. Fisher Asset Management owned the largest stake in the company, worth over $1 billion.

Harding Loevner mentioned Shell plc (NYSE:SHEL) in its Q1 2022 investor letter. Here is what the firm has to say:

“While risks of unforeseen consequences arising from the Ukraine conflict are high, on this front we are cautiously optimistic that China will work hard to maintain its neutrality in a credible way, as it is a huge beneficiary of trade with the rest of the world, especially the rich developed nations. We think it likely that China, along with India, will continue to buy oil and gas from Russia (just as Europe, at least for now, plans to keep its gas pipelines open), and do not expect that fact to alter China’s trade relations with the West much. Nevertheless, we must contemplate that our optimism is misplaced on the importance of membership in the global network of exchange. If our central and optimistic case—admittedly an educated guess—is wrong, then we’d need to greatly modify our views of which companies in our opportunity set will face new barriers to profitable growth, and which might stand to benefit, relatively, from a further receding of globalization. (Global trade, after all, has never matched the peak share of GDP it reached in 2008, before the Global Financial Crisis.) We’d expect such a world to be less efficient, as the cold logic of comparative advantage is demoted as a determinant of which goods or services are produced and where. That would lead to a less prosperous world, since exploiting comparative advantage is a cornerstone of wealth creation. If regional blocs began to raise limits on the movement of capital as well as goods, we’d need to parse which of our multi-national companies were at risk of declining sales from increasingly hostile, siloed countries. Royal Dutch Shell (NYSE:SHEL) has found its Siberian oil and gas joint venture assets stranded by the combination of sanctions and the public opprobrium of Russia’s actions.”

4. Brookfield Renewable Partners L.P. (NYSE:BEP)

Ex-Dividend Date: February 27
Dividend Yield as of February 6: 4.72%

Brookfield Renewable Partners L.P. (NYSE:BEP) is a Bermuda-based renewable energy company that owns related power assets. In January, JonesResearch initiated its coverage of the stock with a Buy rating and a $37 price target. The firm mentioned that the company has ‘abundant growth ahead’.

On February 3, Brookfield Renewable Partners L.P. (NYSE:BEP) declared a quarterly dividend of $0.3375 per share, having raised it by 5.5%. This was the company’s 12th consecutive year of dividend growth. This high-yield dividend stock’s yield came in at 4.72% on February 6. The stock will be trading ex-dividend on February 27.

At the end of Q3 2022, 19 hedge funds in Insider Monkey’s database owned stakes in Brookfield Renewable Partners L.P. (NYSE:BEP), worth $161.2 million. With nearly 2 million shares, Select Equity Group was the company’s leading stakeholder in Q3.

3. Gilead Sciences, Inc. (NASDAQ:GILD)

Ex-Dividend Date: March 14
Dividend Yield as of February 6: 3.47%

Gilead Sciences, Inc. (NASDAQ:GILD) is an American biopharmaceutical company, based in California. The company specializes in the research and development of antiviral drugs. In February, Piper Sandler raised its price target on the stock to $112 with an Overweight rating on the shares, noting the company’s commercial business.

Gilead Sciences, Inc. (NASDAQ:GILD) started paying dividends in 2015 and has raised its payouts every year since then. It currently pays a quarterly dividend of $0.75 per share, raising it by 2.7% on February 2. The stock’s dividend yield on February 6 came in at 3.47% and it will go ex-dividend on March 14.

At the end of Q3 2022, 56 hedge funds tracked by Insider Monkey owned stakes in Gilead Sciences, Inc. (NASDAQ:GILD), valued at $3.63 billion collectively.

Ariel Investments mentioned Gilead Sciences, Inc. (NASDAQ:GILD) in its Q3 2022 investor letter. Here is what the firm has to say:

“At the stock level, biopharmaceutical company Gilead Sciences, Inc. (NASDAQ:GILD) was the top contributor in the quarter based on positive data released in a study evaluating Trodelvy versus comparative chemotherapy in patients with metastatic breast cancer. The detailed findings increased investor confidence the drug would receive incremental approvals for a broader range of breast cancer treatments. Shares also received a boost on news the TAF patent portfolio for HIV drugs will be extended from the middle of this decade through the early 2030s, thereby lengthening the company’s long-term opportunity in the virology market.”

2. UGI Corporation (NYSE:UGI)

Ex-Dividend Date: March 14
Dividend Yield as of February 6: 3.55%

UGI Corporation (NYSE:UGI) is an American natural gas and electric power distribution company. The company has been raising its dividends consistently for the past 35 years and maintains a dividend-paying streak of 138 years. It currently offers a quarterly dividend of $0.36 per share with a dividend yield of 3.55%, as of February 6. The stock will go ex-dividend on March 14.

In fiscal Q1 2023, UGI Corporation (NYSE:UGI) reported revenue of $2.76 billion, which saw a 3.4% growth from the same period last year. The company had available liquidity of approximately $1.2 billion.

At the end of Q3 2022, 26 hedge funds tracked by Insider Monkey reported owning stakes in UGI Corporation (NYSE:UGI), up from 24 in the previous quarter. These stakes are worth over $152 million collectively.

Diamond Hill Capital mentioned UGI Corporation (NYSE:UGI) in its Q3 2022 investor letter. Here is what the firm has to say:

“UGI Corporation (NYSE:UGI), a natural gas and electric power utility, generates approximately one-third of its revenue through its European propane distribution business. The European energy market dislocation and subsequent inflation have raised fears of significant volume and price contraction, pressuring UGI’s share price. Longer term, we believe UGI’s investments into renewable/alternative energy sources position it well. In the nearer term, it should continue to have an advantage delivering fuel to rural locations that are not easily served by gas pipelines — whether that fuel is propane, liquified petroleum gas (LPG), renewable natural gas (RNG) or other alternative fuels.”

1. BCE Inc. (NYSE:BCE)

Ex-Dividend Date: March 14
Dividend Yield as of February 6: 6.31%

A Canadian communications company, BCE Inc. (NYSE:BCE) tops our list of high-yield dividend stocks to buy. The company pays a quarterly dividend of C$0.9675 per share and has a dividend yield of 6.31%, as of February 6. It has been rewarding shareholders with increased dividends for over five years. The stock will be trading ex-dividend on March 14.

As of the close of Q3 2022, 10 hedge funds owned stakes in BCE Inc. (NYSE:BCE), as per Insider Monkey’s database. The collective value of these stakes is over $82 million. Among these hedge funds, Renaissance Technologies was the company’s leading stakeholder in Q3.

You can also take a look at 10 Best February Dividend Stocks To Buy and 13 Cheap DRIP Stocks To Buy Now

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