10 Best High Yield Dividend Stocks to Buy According to Billionaire Jim Simons

Published April 26, 2021 at 10:28 am EDT Updated August 19, 2026 at 4:53 am EDT

In this article we presented the 10 best high yield dividend stocks to buy according to billionaire Jim Simons.

James Harris Simons, popularly known as Jim Simons, is one of the most iconic figures in hedge fund history. He started his career as a mathematician before diving into finance in the late 1970s. He founded New York-based Renaissance Technologies in 1982, a hedge fund that uses quantitative analysis to pick out trading opportunities in the financial markets.

Billionaire Jim Simons’ Hedge Fund’s Performance

Renaissance Technologies relies on quantitative techniques that are based on statistical and mathematical models to achieve systematic trading. It is currently one of the most successful hedge funds. To put its success to perspective, its founder, Jim Simons’ wealth is estimated to be around $23.5 billion, making him one of the top 30 richest people in the U.S.

Renaissance Technologies delivered 66% annualized returns between 1988 and 2018 pre-fees and 39% after fees. Simons retired from his position as the company towards the end of 2009, but he is considered one of Wall Street’s greatest money managers of all time. The hedge fund delivered an annual return of 71.8% before fees from 1994 to 2014. Its popular Medallion Fund, which is exclusively available to former and existing partners, was up 9.1% in Q1 2021, continuing its trend from the previous year, during which the fund gained 76%.

Jim Simon’s wealth reportedly grew by $2.6 billion in 2020. Despite the fund’s success, there were some losses. Renaissance Technologies’ international equities fund was reportedly down 19% in 2020 while its Alpha Fund tanked by 19% during the same period, as some investors started pulling out their money.

Renaissance Technologies has reportedly been bullish by as much as 24% in 2021 so far up to April 14. March was a particularly good month for the fund considering its 9.9% rally. The fund’s market value in Q4 2020 was $92.092 billion, which was notably lower than its $100.15 billion market value in the previous quarterly period.

The fund purchased 574 new stocks in Q4 2020. It also added its stake in 1,140 stocks, offloaded 565 stocks, and trimmed its shareholding in 1,623 stocks.

Jim Simons of Renaissance Technologies

Where does Renaissance Technologies Invest?

The hedge fund has a robust portfolio that is spread out across multiple industrial segments. The healthcare segment takes the lion’s share of the portfolio at 21.64%, followed by the IT segment at 15.89%. Consumer discretion is also sizable at 13.90%, the communications industry at 9.63%, while consumers staples account for 8.41%. The finance segments take up 8.17%, materials at 5.39%, and industrials have the smallest share of the portfolio at 5.10%.

Simons is a quant genius whose bets are often contrarian and ignore market sentiment. For example, in the fourth quarter of 2020, Renaissance initiated a new stake in NVIDIA Corporation (NASDAQ: NVDA), buying about 1 million shares in the company, worth $523.82 million. On the other hand, ARK’s Cathie Wood has been selling NVIDIA, based on the latest 13F data. ARK recently sold about 31,938 shares of Nvidia Corp through ARK Autonomous Technology & Robotics and Ark Fintech Innovation ETFs.

Simons is also bullish on Facebook, Inc. Common Stock (NASDAQ:FB), according to his hedge fund’s disclosed holdings data as of the end of 2020. The fund increased its hold in Facebook, Inc. Common Stock by 35% in the fourth quarter, ending the period with over 1 million shares of the social media giant, worth $274.6 million. Investment firm Oppenheimer recently upped its ads revenue estimates for Facebook stock, citing upbeat digital advertising spending expecting in 2021 on the back of economic recovery. The firm increased its Facebook, Inc. (FB)’s 2021 ad revenue estimates by 3%.

But in this article we focus on Simons’ high-yield dividend picks. It has become extremely important for average investors to pay attention to reliable dividend stocks in the current age of financial volatility, job losses and recession. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Let’s start our list of the 10 best high yield dividend stocks to buy according to billionaire Jim Simons. We analyze the positions with high dividend yield initiated by Renaissance Technologies.

Best High Yield Dividend Stocks to Buy Based on Renaissance’s Q4 Portfolio

10. Altus Midstream Company (NASDAQ: ALTM)

Number of Hedge Fund Holders: 4
Dividend Yield: 10.5%

Altus runs gas collection, processing, and transmission activities in the Delaware Basin. It also has equity in four major pipelines operating between Permian and Gulf Coast. Altus Midstream had four hedge fund investors in Q4 2020.

The company’s net income in Q4 2020 was $60.2 million. Its revenue for the same period was $35.4 million, which was down 19.2% YOY. The company is expected to register between $30 and $40 million in revenue from its capital investments in 2021.

Altus announces its latest quarterly dividend at $1.50 per share, which was paid out on March 31. According to Jim Simon’s hedge fund, the healthy dividend payout makes it one of the best high-yield dividend stocks.

9. KNOT Offshore Partners LP (NYSE: KNOP)

Number of Hedge Fund Holders: 4
Dividend Yield: 10.66%

KNOT operates shuttle tankers through long-term charters serving offshore oil production in Brazil and the North Sea region. The company has 16 specially customized ships with complex positioning and loading systems known as shuttle tankers used to ferry oil from offshore rigs to onshore refineries. Four hedge funds had invested in the company in Q4 2020, including Renaissance Technologies.

The company announced a quarterly dividend of $0.52 per share for Q1 2021, aligning with its $2.08 annual dividend. This also makes it one of the best high yield dividend stocks on Renaissance Technologies’ portfolio. The dividend payout will take place on May 13, 2021.

KNOT Offshore Partners operations went unaffected by the coronavirus pandemic. Its revenue in the latest quarter was 71.3 million after a 0.4% gain. It reported a net income of $25.1 million, which reflects a 77.2% gain. Its net profit margin was 35.2 million representing a 76.6% gain. The company’s diluted earnings per share increased by 78.6% to $0.75.

8. National Presto Industries Inc. (NYSE: NPK)

Number of Hedge Fund Holders: 9
Dividend Yield: 11.66%

National Presto is a U.S-based company that makes small appliances and defense equipment. The company has been around for more than a century, during which it was also known as northwestern Steel and Iron Works in the early 1900s and National Pressure Cooker Company by 1929. It adopted its current name in 1953. The company has a wide range of products, especially kitchen ware. However, most of its business comes from the defense segment.

National Presto Industries reported $65.64 million net sales in Q1 2020, a slight increase from the $63.85 million net sales figure in Q1 2019. Full-year 2020 net sales hit 87.13 million, representing a 21.45% YoY gain. This improved performance can partly be explained by the lockdown, which meant that people had more time to cook rather than eating out; thus, the demand for home appliances increased.
98% of the demand for products by National Presto Industries currently comes from the defense industry in government contracts. The small appliances and houseware segment accounts for 28.92% of the company’s sales. The company had 9 hedge funds owning its shares in Q4 2020. Royce & Associates had the highest holding of any of the hedge funds at 452,635 shares.
The company is debt-free and is very reputable as far as dividend payouts are concerned. It is certainly one of the best high-yield dividend stocks that investors can get into. It has an 18.64% annual return.

7. Natural Health Trends Corp. (NASDAQ: NHTC)

Number of Hedge Fund Holders: 2
Dividend Yield: 11.28%

Natural Health Trends sells wellness, health, and vitality products through direct selling networks that distribute the products to international markets. The products include cremes, lip gross, dietary supplements, and skincare products. Natural Health Trends had two hedge fund investors in the latest quarter, namely Renaissance Technologies, which owns 914,038 shares, and D E Shaw with 10,291 shares.

The company reported $16.6 million in Q4 2020 revenue representing a 17% gain from its revenue in the previous quarter. Its operating revenue for the full year 2020 dropped by $9.0 million. Its Q4 2020 performance represents the third consecutive quarter that the company has achieved a positive operating income.

Its Q4 and full-year 2020 operations achieved a positive cash flow. The company reported a $0.20 quarterly cash dividend earning it a spot among the best high yield dividend stocks.

6. Hoegh LNG Partners LP (NYSE: HMLP)

Number of Hedge Fund Holders: 6
Dividend Yield: 11.00%

Hoegh offers liquefied natural gas services by operating floating storage, as well as regasification units. Its portfolio also includes LNG assets such as carriers, among others. The company attracted 6 hedge fund investors, including Renaissance Technologies, which owned 717,669 shares, and Arrowstreet Capital at 153,636 shares.

The company recently announced a quarterly cash distribution or dividend of $0.44 per common share in line with its annual dividend of $1.76 per share, making it one of the best high dividend stocks.
The company leases floating storage regasification units through highly profitable long-term contracts that span up to 8.5 years, making it a reliable LNG shipping company.
Hoegh LNG Partners’ operating income in Q4 2020 was $25.5 million while its net income was $18.5 million. In comparison, its operating income in Q4 2019 was $27.9 million, while its net income for the same period was $18.7 million.

5. Orchid Island Capital, Inc. (NYSE: ORC)

Number of Hedge Fund Holders: 10
Dividend Yield: 14.47%

Orchid Island primarily focuses on mortgage-backed securities (RMBS) with a strategy oriented towards structured agency RMBS and traditional pass-through Agency RMBS. Of the 800 funds tracked by Insider Monkey, 10 reported having stakes in the company at the end of 2020, including D E Shaw, which owns 1.15 million Orchid shares.

Orchid Island Capital announced a $0.065 per share monthly dividend for April 2021, which aligns with the company’s previously announced dividend. This puts Orchid in the list of the best high yield dividend stocks.
It has an estimated $0.34 per share GAAP net loss for the March 31 quarter. Its unrealized and net realized loss on derivative instruments and RMBS is $0.60 per share.
Orchid Island Capital recently announced a public offering through which it plans to sell 8 million shares. It also expects to provide its underwriter with the option to purchase an extra 1.2 million shares. The company will use the proceeds from the sale to expand its Agency RMBS and fund its general corporate activities.

4. Mobile TeleSystems (NYSE: MBT)

Number of Hedge Fund Holders: 13
Dividend Yield: 12.62%

Mobile TeleSystems provides cellular communication services in Eastern European countries, including Turkmenistan, Uzbekistan, Ukraine, and Russia. Its services are available to companies that leverage GSM systems, and the range of services include voice, SMS, and GPRS. The company has 13 hedge funds that own its shares, including Renaissance Technologies, which owns 23.85 million shares in MTS.

Mobile TeleSystems is Russia’s leading telecommunications provider with 30% market share and a growing subscriber base. The company plans to be the leading 5G provider in the country and has partnered with global industry leaders such as Qualcomm, Ericsson, and Huawei. Mobile TeleSystems reported that its Q4 2020 revenue increased to 133.7 billion rubles representing a 7.4% from the revenue figure reported in the previous quarter. Its operating profit in Q4 was 26.1 billion rubles which represents a 5.2% drop
Mobile TeleSystems has a 12% dividend yield, making it one of the best high yield dividend stocks on Renaissance Technology’s portfolio. The company plans to sustain its impressive growth through further investments into IT and consumer online services.
The company’s mobile service revenue in Russia increased by 6.4% in Q4 despite the challenging economic times caused by the pandemic and a decline in international roaming. The number of active mobile subscribers on the MTS network grew by 230,000 subscribers in Q3.

3. Antero Midstream Corporation (NYSE: AM)

Number of Hedge Fund Holders: 19
Dividend Yield: 10.02%

Antero Midstream deals with midstream energy asset development and operation. Some of its products and services include clearwater facilities, water distribution, pipeline safety, and fractionation services. The company attracted 19 hedge funds, including Renaissance Technologies. Brave Warrior Capital had the highest stake out of all the hedge funds at just over 5.3 million shares.

The company announced in April 2021 that specific members of its management team would take up new responsibilities after Glen C. Warren, Jr’s exit from his positions as director, president, and Chief Financial Officer on April 30. Paul M. Rady, the current CEO and chairman of Antero Resources and Antero Midstream, will become the new president of the two companies.

Michael N. Kennedy, Antero Resource’s current Senior Vice President and Antero Midstream’s Chief Financial Officer, will be appointed as Antero Resource’s new CFO. He will also join the board of directors at Antero Midstream.

Antero announced a Q1 2021 dividend of $0.225 per share, representing a 26.8% decline from the Q4 2020 dividend of $0.3075. This reflects the company’s plans to slash its annual dividend to around $0.90 per share.

Antero Midstream share price experienced a sharp decline after Goldman Sachs analysts downgraded it from a “neutral” to a “sell” with a price target of $7.50. The firm cited valuation concerns for the downgraded. Goldman Sachs still believes that Antero Midstream has a favorable macro environment, especially as investors start to focus on midstream companies that offer better asset quality.

Bonhoeffer Capital Management, in their Q4 2020 investor letter, stated that, as natural gas prices are rebounding, Antero Midstream Corporation (NYSE: AM)’s cash flows become more secured. Here is what Bonhoeffer Capital Management has to say about Antero Midstream Corporation in their Q4 2020 investor letter:

“Public LBOs (32% of Portfolio; Quarterly Average Performance +25%)

This includes our broadcast TV franchises, leasing and roll-on/roll-off (RORO) shipping, and our natural gas pipeline firm. One trend in these levered firms is the increasing spread between bond yields and the firms’ free cash flow yield.

An example is Antero Midstream, whose FCF yield was 15% as of December 31, 2020, with a debt yield of 6% with the bond/equity FCF spread of 9%. This is a large spread given that Antero Midstream has completed its backbone infrastructure and gathering investment and capital expenditures should be small going forward. With natural gas prices rebounding, Antero Midstream cash flows become more secured as Antero Resources has more cash flow cushion in making payments to Antero Midstream. The recovery in natural gas prices is expected to continue as the economy opens up and low oil prices have shut down Permian oil wells that were generating almost-free associated natural gas. Antero Midstream’s FCF yield of 15% is also higher than similarly secured Antero subordinated debt with a yield of 7.8%.”

2. Magal Security Systems Ltd. (NASDAQ: MAGS)

Number of Hedge Fund Holders: 2
Dividend Yield: 5%

Magal Security Systems is an international company that provides a range of turnkey solutions such as intelligence gathering, site management, security, and safety. Its products and services are designed for general, outdoor, and security perimeter application. Some of its products can be integrated and managed through control and command software with support for real-time decision-making and action. Some of its solutions include virtual gates, fence-mounted detectors, and detection systems that can be concealed. Magal Security Systems has so far installed its solutions in 75 countries across the world. It also seems to be heavily focused on growth, courtesy of its acquisition of WebSilicon Ltd in 2013.

The security systems company attracted two hedge fund investors, namely Renaissance Technologies, which bought 765,008 shares, and Citadel Investment Group, which acquired 31,759 shares.

Magal Security announced in February 2021 that it signed an asset purchase agreement with Aeronautics Ltd. The deal will facilitate the sale of Magal’s Integration Solutions business for roughly $35 million.
Magal became the majority shareholder of Israeli company BAZ after acquiring 55% of its shares in 2018. BAZ makes military-grade surveillance and smart security video systems. Magal also exercised its options to buy the remaining shares in the Israeli company from Benny Zviran, its general manager. BAZ managed to hit financial and commercial targets as per Magal Security’s guidelines, and it also managed to hit record revenues in 2020.

1.Xinyuan Real Estate Co., Ltd. (NYSE: XIN)

Number of Hedge Fund Holders: 4
Dividend Yield: 40%

Xinyuan Real Estate develops and manages real estate, especially in the Chinese market, although it has also been expanding into other markets. It has large-scale real estate projects in major cities, including Foshan, Zhuhai, Dalian, Suzhou, Xi’an, Chengdu, Qingd, Jinan, Zhengzhou, Tianjin, Shanghai, and Beijing. Xinyuan also operates in the U.S and was one of the first Chinese real estate companies to penetrate the North American market, mainly in New York. The Chinese company aims to cater to the real estate needs of the middleclass.

Xinyuan recently announced that it finalized the offering of its 14.0% senior notes worth $170 million. The notes will expire on January 25, 2024. The company recently announced a collaboration with Sino-Ocean Group to develop some land that was recently acquired Zhengzhou. It is the first partnership between the two companies. Xinyuan also announced that Mr. Haifei He was appointed to its Board of Directors, as well as the board’s investment committee.

The appointment follows Mr. Shangrong’ resignation from his director position and the investment committee. Ms. Wendy also gave up her director position and stepped down from her position as an audit committee member.

Renaissance Technologies is Xinyuan Real Estate’s largest hedge fund shareholder. The real estate company’s performance in the last year was 6.67% growth, pushing it up the ranks as one of the best high yield dividend stocks, according to Renaissance Technologies.

You can also take a peek at 10 Good Paying Jobs For 18 Year Olds and 10 Best High Dividend Stocks to Buy.

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