6 Dividend Stocks – $SBGI, $TSU, $NYX, $UVV, $AYR, $STX

When you buy a dividend stock, you have two ways to earn money – from the stock’s performance and from the dividends the stock yields. There is a catch though – you have to decide how you want to receive your dividends when you purchase the stock. Keep in mind that which ever method you use is taxable. If you receive your dividends as income, you can pay the taxes on that sum from the dividends themselves, but if you reinvest your dividends, you will have to pay taxes on the dividends you receive when they are disbursed, which could be a hefty amount out of pocket.



The dividend amount will vary dramatically between companies but, in any case, if you invest enough, you could use your dividends to replace or supplement your income. Now, with this strategy comes certain risks – after all, the company could stop providing dividends at any time, or change the dividend amount.


On the other hand, you could choose to reinvest the dividends. Reinvesting takes advantage of compounding interest to net you even greater returns. It also acts as type of hedging – if the stock performs poorly, the reinvested dividends can offset loss. Between the benefits of reinvesting (it’s like “free money”) and the hedging ability of reinvesting dividends, if you can afford to pay the tax bill, reinvesting can be extremely profitable, especially if the dividend yielding stock is a strong and consistent performer.


Choosing the right dividend stock is important. Whether you want to use the dividends as income or reinvest them, finding a stock that will consistently perform well while offering consistent dividends is critical to managing your investment portfolio – whatever your purpose. For example, a stock like the Coca-Cola Company has been consistently providing dividends, and consistently increasing them, for the last few decades.

To give you an idea what to look for, we compiled a list of stocks with dividend yields over 4% of their respective stock prices. Then, we narrowed the list to look only at those stocks that pay out less than 50% of their profits as dividends (“payout ratio”). This was done to help control the quality of the list. Next, we looked at the number of stocks that had the highest number of institutional purchases in the current quarter.

Here is a list of the stocks we came up with. You can use as a starting point for your own analysis:

  • Sinclair Broadcast Group (SBGI) is a company that provides programming, operating and sales services to television stations in the US had a dividend yield of 5.17% and a payout ratio of 46.76%. It also has 2.1M in institutional purchases, which is over 4% of the company’s 50.81M float. Amongst the 300+ hedge funds we track, 14 have positions in SBGI, including Jim Simons’ Renaissance Technologies.
  • TIM Participacoes (TSU) is a Brazilian mobile telecom company. It has a dividend yield of 5.12% and a payout ratio of 17.96%. TSU also has 13.3M in institutional purchases, which is almost 12% of the company’s 112.2M float. Amongst the 300+ hedge funds we track, 15 have positions in TSU, including Lee Hobson’s Highside Capital Management.
  • NYSE Euronext (NYX) a securities exchange company. It has a dividend yield of 4.48% and a 33.93% payout ratio. NYX also has 14.0M in institutional purchases, which is over 5% of the company’s 261.37M float. Amongst the 300+ hedge funds we track, 27 have positions in NYX, including John Paulson’s Paulson & Co.
  • Universal (UVV) is a tobacco leaf processor and merchant. It has a dividend yield of 4.48% and a payout ratio of 33.93%. UVV also has 1.5M in institutional purchases, which is almost 7% of the company’s 22.82M float. Amongst the 300+ hedge funds we track, 11 have positions in UVV, including David Dreman’s Dreman Value Management.
  • Aircastle Ltd (AYR) buys, leases and sells jets to passenger and cargo airlines worldwide. It has a 4.31% dividend yield and a payout ratio of 35.40%. AYR also has 2.0M in institutional purchases, which is over 3.5% of the company’s 56.02M float. Amongst the 300+ hedge funds we track, 14 have positions in AYR, including Michael Novogratz’s Fortress Investment Group.
  • Seagate Technology (STX) is a hard disk drive manufacturer. It has a dividend yield of 4.20% and a payout ratio of 30.28%. STX also has 26.7M in institutional purchases, which is almost 7% of the company’s 391.47M float. Amongst the 300+ hedge funds we track, 30 have positions in STX, including David Einhorn’s Greenlight Capital.
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).


Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

The 10 Biggest Tax Havens in the World to Stash Your Money

The 15 Most Murderous Countries in the World

10 Largest Colleges in the World: Bigger Isn’t Always Better

Comedians in Cars Getting Coffee: The 6 Comedians Seinfeld Needs to Interview

Easy Money: The 10 Most Successful Investors in the World Today


Enter your email:

Delivered by FeedBurner


Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!