5 High-Paying Dividend Stocks That Hedge Funds Gobbled Up in Q2

Page 2 of 2

#3 HSBC Holdings plc (ADR) (NYSE:HSBC)

– Number of Hedge Fund Shareholders (as of June 30): 18
– Total Value of Hedge Funds’ Holdings (as of June 30): $1.06 billion
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 0.90%

Although HSBC Holdings plc (ADR) (NYSE:HSBC) shares haven’t outperformed the index this year due to the uncertain global economy, the bank’s shares have been on an upward trend since early-July, as investors anticipate higher interest rates. Given that Federal Reserve Chair Janet Yellen recently said at Jackson Hole that the case for “[…] an increase in the federal funds rate has strengthened in recent months,” higher interest rates could be a reality sooner rather than later, and HSBC could begin generating more interest income. The added interest income will make HSBC’s annual dividend of $2 per share for an 8.50% annual yield, safer. 18 hedge funds in our system owned HSBC shares on June 30, up by four quarter-over-quarter.

#2 Communications Sales & Leasing Inc (NASDAQ:CSAL)

– Number of Hedge Fund Shareholders (as of June 30): 24
– Total Value of Hedge Funds’ Holdings (as of June 30): $489.58 million
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 11.20%

The number of hedge funds that we track with holdings in Communications Sales & Leasing Inc (NASDAQ:CSAL) rose by nine quarter-over-quarter to 24 as of the end of June, making Communications Sales & Leasing one of the most popular high-dividend stocks during the quarter. Communications Sales & Leasing currently pays a quarterly dividend of $0.60 per share, good for an 8.14% annual yield. Communication Sales and Leasing reported mixed earnings for its second quarter, with FFO of $0.66 on sales of $188.6 million. The results beat FFO estimates by $0.01 per share but missed revenue expectations by $0.44 million.

Follow Uniti Group Inc. (NASDAQ:UNIT)

#1 BP plc (ADR) (NYSE:BP)

– Number of Hedge Fund Shareholders (as of June 30): 40
– Total Value of Hedge Funds’ Holdings (as of June 30): $1.76 billion
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 1.60%

With 40 hedge funds reporting long positions in BP plc (ADR) (NYSE:BP) as of the end of June, up by six from the beginning of April, the stock ranked as the most popular high-dividend stock (with an annual yield of around 7% currently) that also enjoyed positive hedge fund sentiment during the second quarter. Although Brent prices fell in late-July, they reversed in August on the back of supportive Saudi and Iranian comments. If Brent prices reach the $50-to-55 mark and stay there, BP’s dividend will likely be sustainable over the long-term. Jim Simons‘ Renaissance Technologies raised its stake in the super-major by 51% in the second quarter, to almost 1.5 million shares at the end of June.

Follow B P Plc (NYSE:BP)

Disclosure: None







Page 2 of 2