In this article, we discuss 10 dividend stocks with over 8% yield to buy in September. You can skip our detailed analysis of top high dividend stocks, and go directly to read 5 Best Dividend Stocks with Over 8% Yield You Can Buy in September.
In the current market situation, investors are looking for different ways to protect their capital. Dividend stocks are considered safe in this regard as they offer regular streams of income even in times of financial instability. Analysts recommend including strong dividend companies in portfolios with record tracks of dividend growth to find stability during these times. Dividend stocks like Exxon Mobil Corporation (NYSE:XOM), The Coca-Cola Company (NYSE:KO), and Johnson & Johnson (NYSE:JNJ) are gaining popularity these days as investors scramble to find safe, income-generating stocks in these chaotic times.
When investing in dividend stocks, investors also pay attention to dividend yields which give an estimate of the income relative to the share price. Andrew McOrmond, a managing director at WallachBeth Capital, talked about dividend yields in his interview with CNBC in June. He asserted that investing in dividend yields is one of the most efficient ways to generate steady income in the ongoing financial turmoil and investors should focus on top high-dividend stocks.
This statement was also supported by Dan Suzuki of Richard Bernstein Advisors, which is loading up on high dividend stocks for long-term investments. Suzuki said in an interview with Bloomberg that high-yield stocks are offering attractive investment opportunities as recession fears grow around the globe.
Historically, high dividend stocks have performed well in rising interest rates environment. According to a report by Global X, the total return of high dividend stocks outperformed the S&P 500 by nearly 3% from 1960 to 2017 and generated an average annual dividend yield of 6.4%. The report further mentioned that top high dividend stocks have outperformed the broader index in seven out of 10 rising rate periods since 1960. Another research paper published by the University of Nevada analyzed the returns of high dividend yield stocks from the Dow Jones Industrial Average from 1987 to 2012. The report mentioned that in 16 out of these 26 years, high dividend yield stocks delivered an average annual return of 10.82% while low dividend yield stocks returned 3.3%. In view of this, we will discuss the best dividend stocks with over 8% yield you can buy in September.
Our Methodology
For this list, we picked the top high dividend stocks with yields above 8%, as recorded on September 8. We also analyzed respective companies’ financial health and dividend policies that would benefit investors in the current environment.
10 Best Dividend Stocks with Over 8%
10. Omega Healthcare Investors, Inc. (NYSE:OHI)
Dividend Yield as of September 8: 8.27%
Omega Healthcare Investors, Inc. (NYSE:OHI) is an American self-administered real estate investment trust company that invests in long-term healthcare facilities and mortgages. In August, the company was double upgraded to Buy at BofA with a $35 price target. The firm appreciated the company’s performance during the pandemic and also highlighted its Medicare business.
In Q2 2022, Omega Healthcare Investors, Inc. (NYSE:OHI) reported revenue of $244.6 million, which beat consensus by $24.5 million. The company’s cash position remained stable as it ended the quarter with $165 million in cash and cash equivalents and nearly $1.4 billion in revolving credit facility. It generated roughly $170 million in free cash flow during the quarter, up from $127.5 million in the previous quarter.
Omega Healthcare Investors, Inc. (NYSE:OHI) raised its dividends consistently for 17 years before ceasing its dividend growth in 2020 during the pandemic. It currently pays a quarterly dividend of $0.67 per share. The top high dividend stock’s yield was recorded at 8.27% on September 8.
At the end of Q2 2022, 23 hedge funds in Insider Monkey’s database owned stakes in Omega Healthcare Investors, Inc. (NYSE:OHI), up from 17 in the previous quarter. These stakes hold a collective value of over $71.7 million. Among these hedge funds, Marshall Wace LLP was the company’s leading stakeholder in Q2.
In addition to Exxon Mobil Corporation (NYSE:XOM), The Coca-Cola Company (NYSE:KO), and Johnson & Johnson (NYSE:JNJ), Omega Healthcare Investors, Inc. (NYSE:OHI) is another prominent dividend stock to consider in this current market uncertainty.
Aristotle Capital Management mentioned Omega Healthcare Investors, Inc. (NYSE:OHI) in its Q1 2022 investor letter. Here is what the firm has to say:
“Omega Healthcare Investors (NYSE:OHI), healthcare-focused real estate investment trust, was removed from the portfolio due to a deterioration of the financial condition of its tenant base. After seeing an improvement in the prior couple of quarters, management highlighted the potential for a worsening outlook for delinquencies with subdued occupancy due to COVID-related concerns and labor shortages. We believe higher labor costs due to the ongoing nursing and general labor shortage are also negatively impacting their customers and have decided to step away from our investment.”
9. Magellan Midstream Partners, L.P. (NYSE:MMP)
Dividend Yield as of September 8: 8.28%
Magellan Midstream Partners, L.P. (NYSE:MMP) is an Oklahoma-based publicly traded partnership that stores and distributes petroleum products. In Q2 2022, the company generated $255.7 million in free cash flow, compared with $55.5 million in the previous quarter. Its operating cash flow also jumped to $297 million, from $100.4 million in the preceding quarter. The company’s revenue for the quarter showed a 20.6% year-over-year growth at $788.6 million. The management is confident about Magellan Midstream Partners, L.P. (NYSE:MMP)’s cash stability and expects its FCF to reach $1.45 billion in FY22 or $578 million after distributions.
Magellan Midstream Partners, L.P. (NYSE:MMP) currently pays a quarterly dividend of $1.0375 per share. The company has been raising its dividends consistently for the past 20 years, maintaining its position as one of the top high dividend stocks. As of September, the stock’s dividend yield came in at 8.28%.
In June, Goldman Sachs upgraded Magellan Midstream Partners, L.P. (NYSE:MMP) to Buy with a $55 price target. The firm appreciated the company’s healthy balance sheet metrics versus its peers and its continued improvements in refined product volumes.
As of the end of June 2022, 9 hedge funds tracked by Insider Monkey owned investments in Magellan Midstream Partners, L.P. (NYSE:MMP), down from 11 in the previous quarter. These investments are collectively valued at $17.7 million.
8. Global Partners LP (NYSE:GLP)
Dividend Yield as of September 8: 8.31%
Global Partners LP (NYSE:GLP) is a multinational energy supply company that specializes in importing and marketing petroleum products in North America. The company was a part of 3 hedge fund portfolios in Q2 2022, up from 2 in the previous quarter, according to Insider Monkey’s data. The stakes owned by hedge funds hold a collective value of nearly $3 million. Arrowstreet Capital was the company’s leading stakeholder in Q2.
In Q2 2022, Global Partners LP (NYSE:GLP) reported solid growth in its distributable cash flow to $178.2 million, from $26.6 million recorded during the same period last year. Its revenue for the quarter saw a 62.2% year-over-year growth at $5.32 billion. In addition to this, its net income stood at $162.8 million in Q2, up from $12.1 million in the prior-year quarter.
On July 26, Global Partners LP (NYSE:GLP) declared a quarterly dividend of $0.605 per share, consistent with its previous dividend. This top high dividend stock has raised its dividend at a CAGR of 4.99% in the past five years. As of September 8, the stock’s dividend yield came in at 8.31%.
7. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of September 8: 8.36%
Another top high dividend stock on our list is Altria Group, Inc. (NYSE:MO), which is a Virginia-based marketer and producer of tobacco and related products. In 2022, the company extended its dividend growth streak to 53 years. It currently pays a quarterly dividend of $0.94 per share, with a dividend yield of 8.36%, as of September 8.
In Q2 2022, Altria Group, Inc. (NYSE:MO) paid $1.6 billion in dividends and repurchased over 10 million shares for $507 million. Moreover, it is determined to meet its dividend payout ratio target of approximately 80%. The company’s revenue for the quarter came in at $5.37 billion.
In July, Jefferies set a $54 price target on Altria Group, Inc. (NYSE:MO) with a Buy rating on the shares, expecting a double-digit dividend yield in the coming years.
Jim Simons’ Renaissance Technologies owned $366.5 million worth of stakes in Altria Group, Inc. (NYSE:MO), becoming one of its most prominent stakeholders in Q2. In addition to this, 48 hedge funds in Insider Monkey’s database owned stakes in the company in Q2, up from 47 in the previous quarter. These stakes hold a collective value of over $1.83 billion.
6. Camping World Holdings, Inc. (NYSE:CWH)
Dividend Yield as of September 8: 8.46%
Camping World Holdings, Inc. (NYSE:CWH) is an Illinois-based retail company that sells recreational vehicles and vehicle parts and also provides related services to consumers. In July, Raymond James maintained its Outperform rating on the stock with a $32 price target, highlighting the company’s earnings in recent quarters.
In Q2 2022, Camping World Holdings, Inc. (NYSE:CWH) reported strong results. The company’s new and used vehicle inventories were $1.7 billion, showing an increase of $782.5 million from the same period last year. Its operating cash flow for the quarter stood at $394 million and its free cash flow came in at $345.6 million. The company ended the quarter with nearly $134 million available in cash and cash equivalents.
In February, Camping World Holdings, Inc. (NYSE:CWH) hiked its quarterly dividend by 25% and currently pays $0.625 per share in dividends every quarter. The stock’s dividend yield was recorded at 8.46% on September 8. The company can be a good addition to dividend portfolios among other famous dividend stocks like Exxon Mobil Corporation (NYSE:XOM), The Coca-Cola Company (NYSE:KO), and Johnson & Johnson (NYSE:JNJ).
The number of hedge funds tracked by Insider Monkey owning stakes in Camping World Holdings, Inc. (NYSE:CWH) stood at 17 in Q2 2022, up from 16 in the previous quarter. These stakes are collectively valued at roughly $160 million. Abrams Capital Management was the company’s leading stakeholder in Q2, owning stakes worth over $110 million.
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Disclosure. None. 10 Best Dividend Stocks with Over 8% Yield You Can Buy in September is originally published on Insider Monkey.
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