Ultra-High Dividend Small-Cap Stocks to Buy Now: Pier 1 Imports, Abercrombie & Fitch, More

#3 Pier 1 Imports Inc (NYSE:PIR)

– Hedge Funds With Long Positions (as of June 30): 22

– Value of Hedge Funds’ Holdings (as of June 30): $36.54 Million

– Annual Dividend / Yield : $0.28/6.56%

Shares of Pier 1 Imports Inc (NYSE:PIR) have continued on their inexorable downward journey this year, which started in mid-2013, losing 16% of their value so far in 2016. As the furniture importer has increased its dividend payments by 40% since 2013 and lost over 83% of its market cap since May 17, 2013, its forward yield has ballooned several-fold over the last three years, to 6.56% from less than 1% in 2013. On September 28, the company reported its second quarter earnings, declaring a loss per share of $0.05 on revenue of $405.85 million, largely in-line with analysts’ expectations. For the same quarter of the previous year, Pier 1 Imports Inc (NYSE:PIR) had reported EPS of $0.04 on revenue of $430 million. Pier 1 jumped in popularity among the hedge funds in our system during the second quarter, with a net total of nine more shareholders long the stock and the aggregate value of their holdings in it jumping by 61.5%.

#2 Scorpio Tankers Inc. (NYSE:STNG)

– Hedge Funds With Long Positions (as of June 30): 23

– Value of Hedge Funds’ Holdings (as of June 30): $113.70 Million

– Annual Dividend / Yield : $0.50/10.50%

Moving on, 23 hedge funds that we track were long Scorpio Tankers Inc. (NYSE:STNG) on June 30, down by three during the second quarter, while the aggregate value of their holdings in it shrank by 16.15%. The rebound in oil and natural gas prices this year hasn’t been of any help to Scorpio Tankers Inc. (NYSE:STNG)’s stock, which has lost almost 40% of its value this year. However, the massive decline has helped push the forward yield of its shares to above 10%. According to analysts who track Scorpio Tankers, the stock could be poised for significant upside in the coming months owing to a turnaround in the product tankers industry and the fact that it currently trades at a price-to-book multiple of only 0.55, half of the average price-to-book ratio of 1.1 that it traded at prior to mid-2015. Last month, analysts at Deutsche Bank reiterated their ‘Buy’ rating and $9 price target on the stock, which represents potential upside of 75%.

#1 Abercrombie & Fitch Co. (NYSE:ANF)

– Hedge Funds With Long Positions (as of June 30): 30

– Value of Hedge Funds’ Holdings (as of June 30): $215.32 Million

– Annual Dividend / Yield : $0.80/5.03%

Abercrombie & Fitch Co. (NYSE:ANF) was the most popular ultra-high dividend small-cap stock among the collection of  successful hedge funds in our database at the end of June. Given that Abercrombie & Fitch Co. (NYSE:ANF) hasn’t hiked its quarterly dividend since early-2013, the greater than 40% decline in the specialty retailer’s stock this year is the primary reason why its annual dividend yield currently hovers over 5%. For its most recent quarter, analysts had expected the company to report a loss of $0.20 per share, but Abercrombie & Fitch missed that estimate by $0.05. On the other hand, its revenue of $783.20 million was slightly higher than analysts’ consensus estimate of $782.64 million. On September 28, analysts at Bank of America initiated coverage on the stock with an ‘Underperform’ rating and $16 price target, predicting no upside from its current price.

Disclosure: None