Dividend Challengers List Ranked By Yield: Top 10

In this article, we discuss top 10 dividend challengers by yield. If you want to read our detailed analysis of dividend stocks and their performance over the years, go directly to read Dividend Challengers List Ranked By Yield: Top 25. 

10. Canadian Imperial Bank of Commerce (NYSE:CM)

Dividend Yield as of February 3: 5.47%

Canadian Imperial Bank of Commerce (NYSE:CM) is a Canadian financial services company that provides a wide range of related services to its consumers. On December 1, the company declared a 2.4% hike in its quarterly dividend to C$0.85 per share. The company has been raising its dividends consistently for the past 12 years. The stock’s dividend yield on February 3 came in at 5.47%.

In December, National Bank maintained its Sector Perform rating on Canadian Imperial Bank of Commerce (NYSE:CM) with a C$61 price target.

At the end of Q3 2022, 12 hedge funds tracked by Insider Monkey owned stakes in Canadian Imperial Bank of Commerce (NYSE:CM), compared with 16 in the previous quarter. These stakes have a collective value of $134.5 million. Israel Englander and D. E. Shaw were some of the company’s most prominent shareholders in Q3.

9. The Williams Companies, Inc. (NYSE:WMB)

Dividend Yield as of February 3: 5.66%

The Williams Companies, Inc. (NYSE:WMB) is an American energy company that deals in the transportation and processing of natural gas. In January, Capital Advisors upgraded the stock to Overweight with a $36 price target, highlighting the company’s performance last year.

The Williams Companies, Inc. (NYSE:WMB), one of the best dividend stocks, currently offers a per-share dividend of $0.425 every quarter. The company holds a six-year streak of consistent dividend growth and has a dividend yield of 5.66%, as of February 3.

At the end of Q3 2022, 35 hedge funds in Insider Monkey’s database owned stakes in The Williams Companies, Inc. (NYSE:WMB), valued at over $404.7 million collectively.

Longleaf Partners mentioned The Williams Companies, Inc. (NYSE:WMB) in its Q2 2022 investor letter. Here is what the firm has to say:

“The Williams Companies, Inc. (NYSE:WMB) – US natural gas pipeline operator Williams contributed as it benefitted from positive natural gas tailwinds in the quarter. After scaling back the position in the first quarter, we sold the remaining position in the quarter as its price reached our appraisal value. This was a very successful investment that was extremely contrarian in 2019 and now has become much more consensus appreciated.”

8. Medifast, Inc. (NYSE:MED)

Dividend Yield as of February 3: 5.70%

Medifast, Inc. (NYSE:MED) is a Maryland-based marketing company that specializes in weight loss and health-related products. On December 8, the company declared a quarterly dividend of $1.64 per share, which fell in line with its previous dividend. It has been raising its dividends every year since 2015. The stock’s dividend yield on February 3 came in at 5.70%.

In the third quarter of 2022, Medifast, Inc. (NYSE:MED) reported revenue of $390.4 million, down 5.6% from the same period last year. The company’s net income amounted to $36.2 million and it had roughly $70 million in cash and cash equivalents at the end of the quarter.

At the end of Q3 2022, 18 hedge funds tracked by Insider Monkey owned stakes in Medifast, Inc. (NYSE:MED), growing from 14 in the previous quarter. These stakes have a total value of over $120.1 million.

7. BCE Inc. (NYSE:BCE)

Dividend Yield as of February 3: 5.71%

BCE Inc. (NYSE:BCE) is a Canada-based communications company that provides broadband wireless, internet, and other related services. In January, CIBC lifted its price target on the stock to C$64 with a Neutral rating on the shares, highlighting the company’s performance and balance sheet.

On February 2, BCE Inc. (NYSE:BCE) announced a 5.2% hike in its quarterly dividend to C$0.9675 per share. The company has been raising its dividends for over five years, which places it as one of the best dividend stocks on our list. The stock has a dividend yield of 5.71%, as of February 3.

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.

6. Lake Shore Bancorp, Inc. (NASDAQ:LSBK)

Dividend Yield as of February 3: 5.73%

Lake Shore Bancorp, Inc. (NASDAQ:LSBK) is a New York-based bank holding company that provides banking services to its consumers. The company pays a quarterly dividend of $0.26 per share and has a dividend yield of 5.73%, as of February 3. It has been raising its dividends for the past six years.

At the end of Q3 2022, 1 hedge fund tracked by Insider Monkey owned stakes in Lake Shore Bancorp, Inc. (NASDAQ:LSBK), worth $259,000.

5. Kinder Morgan, Inc. (NYSE:KMI)

Dividend Yield as of February 3: 6.04%

Kinder Morgan, Inc. (NYSE:KMI) is an American multinational energy infrastructure company, based in Texas. In December, Citigroup initiated its coverage on the stock with a Neutral rating and a $19 price target. The firm presented a constructive cash flow outlook for the midstream sector.

On January 18, Kinder Morgan, Inc. (NYSE:KMI) declared a quarterly dividend of $0.2775 per share, which fell in line with its previous dividend. The company is one of the best dividend stocks on our list as it has been raising its dividends consistently for the past five years. The stock has a dividend yield of 6.04%, as of February 3.

As of the end of Q3 2022, 38 hedge funds tracked by Insider Monkey owned stakes in Kinder Morgan, Inc. (NYSE:KMI), compared with 41 in the previous quarter. These stakes have a collective value of over $1.06 billion. Orbis Investment Management was the company’s leading stakeholder in Q3.

4. Atlantica Sustainable Infrastructure plc (NASDAQ:AY)

Dividend Yield as of February 3: 6.54%

Atlantica Sustainable Infrastructure plc (NASDAQ:AY) is a UK-based company that provides renewable energy solutions. In January, RBC Capital upgraded the stock to Outperform with a $34 price target, highlighting the company’s current valuation which supports its dividend yield.

Atlantica Sustainable Infrastructure plc (NASDAQ:AY) currently offers a quarterly dividend of $0.445 per share and has a dividend yield of 6.54%, as of February 3. The company is among the best dividend stocks on our list as it has been raising its payouts for over 5 years.

At the end of Q3 2022, 21 hedge funds tracked by Insider Monkey reported owning stakes in Atlantica Sustainable Infrastructure plc (NASDAQ:AY), the same as in the previous quarter. These stakes have a total value of over $65.6 million. Among these hedge funds, Renaissance Technologies was the company’s leading stakeholder in Q3.

3. Innovative Industrial Properties, Inc. (NYSE:IIPR)

Dividend Yield as of February 3: 7.87%

Innovative Industrial Properties, Inc. (NYSE:IIPR) is an American real estate investment trust company that provides capital for the medical-use cannabis industry. The company pays a quarterly dividend of $1.80 per share and has a dividend yield of 7.87%, as of February 3. It started its dividend policy in 2017 and has raised its payouts consistently since then.

In January, BTIG maintained a Buy rating on Innovative Industrial Properties, Inc. (NYSE:IIPR) with a $179 price target, appreciating the company’s businesses and quarterly earnings.

As of the close of Q3 2022, 12 hedge funds in Insider Monkey’s database owned stakes in Innovative Industrial Properties, Inc. (NYSE:IIPR), worth nearly $252 million.

2. Medical Properties Trust, Inc. (NYSE:MPW)

Dividend Yield as of February 3: 8.97%

Medical Properties Trust, Inc. (NYSE:MPW) is an Alabama-based real estate investment trust company that mainly invests in healthcare facilities. In the third quarter of 2022, the company’s dividend represented 81% of its AFFO per share. It pays a quarterly dividend of $0.29 per share for a dividend yield of 8.97%, as of February 3. The company maintains a 9-year streak of consistent dividend growth.

Mizuho maintained a Buy rating on Medical Properties Trust, Inc. (NYSE:MPW) in January with an $18 price target, as the company completed the extension of its asset-backed loan agreement.

Medical Properties Trust, Inc. (NYSE:MPW) was a popular buy among elite funds in Q3 2022, with hedge funds positions growing to 23, from 15 in the previous quarter. The stakes owned by these funds have a total value of nearly $340 million.

1. Arbor Realty Trust, Inc. (NYSE:ABR)

Dividend Yield as of February 3: 10.55%

An American real estate investment trust company, Arbor Realty Trust, Inc. (NYSE:ABR) ranks first on our list of the best dividend stocks. In 2022, the company stretched its dividend growth streak to 10 years. It pays a quarterly dividend of $0.40 per share and has a dividend yield of 10.55%, as of February 3.

As of the end of Q3 2022, 13 hedge funds tracked by Insider Monkey owned stakes in Arbor Realty Trust, Inc. (NYSE:ABR), compared with 12 in the previous quarter. The collective value of these stakes is over $45.4 million. With over 1.5 million shares, Balyasny Asset Management was the company’s leading stakeholder in Q3.

You can also take a look at Dividend Kings and Aristocrats List: 50 Biggest Stocks and 13 Cheap DRIP Stocks To Buy Now

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