Is Great Ajax Corp (NYSE:AJX) the Best High-Dividend Penny Stock to Buy Now?

Dividend stocks are gaining momentum following major technology companies announcing their first-ever dividends this year. Americans are also starting to prefer dividend equities during the current inflation storm and expectations of a higher-for-longer scenario. In this environment affordable stocks that pay high dividends are in the limelight.

We recently covered some of the best high-yield penny dividend stocks to buy according to hedge funds. Great Ajax Corp (NYSE:AJX), being a notable name in the REIT industry, deserves special attention.

Great Ajax Corp (NYSE:AJX)

Number of Hedge Fund Investors: 13

Oregon-based mortgage REIT Great Ajax Corp (NYSE:AJX) is one of the best high dividend penny stocks to buy according to hedge funds. As of the end of the fourth quarter of 2023, 13 hedge funds in Insider Monkey’s database had stakes in Great Ajax Corp (NYSE:AJX). The biggest stakeholder of Great Ajax Corp (NYSE:AJX) during this period was Ron Mass’s Almitas Capital, which had a $22 million stake in Great Ajax Corp (NYSE:AJX).

However, earlier this month, Great Ajax Corp (NYSE:AJX) decreased its dividend by 40% to $0.06 per share. Forward dividend yield still comes in at about over 6%.  However, unlike Johnson & Johnson (NYSE:JNJ), Procter & Gamble Co (NYSE:PG) and Exxon Mobil Corp (NYSE:XOM), Great Ajax Corp (NYSE:AJX) is a small company with low hedge fund sentiment.

Photo by Karolina Grabowska: https://www.pexels.com/photo/hands-holding-us-dollar-bills-4968630/

During its November earnings call, Great Ajax management had talked about dividend reductions and reasons behind it:

“This year-to-date, we have distributed $0.65 per share in dividends. We declared a cash dividend of $0.11 per share to be paid on November 30, 2023, to stockholders of record November 15, 2023.

We reduced our dividend in order to focus on book value and maximizing stockholder value overall. This decision follows the announcement of the mutual termination in late October, of our merger agreement with Ellington Financial. The termination was approved by both companies’ Boards of Directors after careful consideration of the proposed merger and the progress made towards completing the transaction. The details of the $16 million termination payment are disclosed in our press release last month. Ellington Financial holds approximately 6.1% of our stock, and it remains a securitization joint venture partner. Also, we disclosed in our earnings press release today, which I refer you to, and as part of our board’s regular assessment of our business and strategic direction, among other things, the Board engaged a financial adviser to assist us with thorough evaluation of strategic alternatives.”

Is Great Ajax Corp (NYSE:AJX)  Really The Best High-Dividend Penny Stock?

Great Ajax Corp (NYSE:AJX) is not the best high-dividend penny stock right now according to Insider Monkey’s research.

See the 10 best high-dividend penny stocks to buy now that are better than Great Ajax Corp (NYSE:AJX)  by clicking here.

Disclosure: None.