In this article, we discuss 10 dividend stocks with over 10% yield. You can skip our detailed analysis of dividend stocks’ past performance and latest trading trends, and go directly to read 5 Dividend Stocks with Over 10% Yield.
Dividend stocks are in the limelight these days as risk of a recession grows and investors turn to stable stocks that promise regular income. Since 1960, high dividend stocks outperformed the broader market index in 7 out of 10 rising interest rate periods, according to a report by Global X.
Andrew McOrmond, a managing director at WallachBeth Capital, recently asserted that high yields are the only way to weather the unstable market conditions. He further mentioned that companies with strong dividend histories have stood the test of time and performed better than their non-dividends peers during market cycles, providing investors with solid investment options.
Though analysts were not very much confident about dividends and buybacks in 2022, the assets of dividend funds have reached $3 billion in June and $43 billion this year so far. Moreover, iShares Core High Dividend ETF, which tracks famous dividend stocks such as The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and Exxon Mobil Corporation (NYSE:XOM), was up 3.9% through May.
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Our Methodology:
We picked some of the notable dividend stocks with over 10% for this article. These stocks are also popular among 900+ elite funds tracked by Insider Monkey at the end of March 2022.
Dividend Stocks with Over 10% Yield
10. Great Ajax Corp. (NYSE:AJX)
Dividend Yield as of June 24: 10.81%
Great Ajax Corp. (NYSE:AJX) is an Oregon-based real estate investment trust that specializes in re-performing mortgage loans and non-performing loans. In Q1 2022, the company’s earnings missed estimates, posting an EPS of $0.15 and revenue of $14.97 million. However, its book value per common share stood at $15.95, up from $15.92 per share a quarter earlier.
Great Ajax Corp. (NYSE:AJX) currently offers a quarterly payout of $0.26 per share, increasing it by 8.3% in March. The stock’s dividend yield came in at 10.81%, as of June 24. In May, Compass Point upgraded Great Ajax Corp. (NYSE:AJX) to Buy with a $16 price target, appreciating the growth in the company’s book value. However, the firm expressed concerns due to rising interest rates and other Fed policies.
At the end of Q1 2022, 10 hedge funds in Insider Monkey’s database owned stakes in Great Ajax Corp. (NYSE:AJX), up from 9 in the previous quarter. The collective value of these stakes is over $39 million. Almitas Capital held the largest position in the company, with stakes valued at over $17.2 million.
Just like famous dividend stocks, such as The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and Exxon Mobil Corporation (NYSE:XOM), hedge funds are also paying attention to AJX.
9. AllianceBernstein Holding L.P. (NYSE:AB)
Dividend Yield as of June 24: 11.46%
AllianceBernstein Holding L.P. (NYSE:AB) is an American investment management firm that specializes in employee benefit plans, retirement funds, and pension funds. In May, the company reported growth in its assets under management at $687 billion, from $685 billion recorded in April. The growth is mainly due to net inflows and market appreciation.
In Q1 2022, AllianceBernstein Holding L.P. (NYSE:AB) reported strong results, posting an EPS of $0.90, which beat estimates by $0.06. The company’s revenue of $1.1 billion also showed a 10% year-over-year growth. Moreover, its retail channel delivered revenue of over $20 billion for the fifth quarter in a row.
The number of hedge funds tracked by Insider Monkey holding stakes in AllianceBernstein Holding L.P. (NYSE:AB) stood at 4 in Q1, down from 5 a quarter earlier. These stakes hold a collective value of $14.4 million, compared with $32.3 million worth of stakes owned by hedge funds in Q4 2021.
On May 5, AllianceBernstein Holding L.P. (NYSE:AB) announced a quarterly dividend of $0.90 per share. The company has paid uninterrupted dividends to shareholders for the past 22 years. As of June 24, the stock’s dividend yield came in at 11.46%.
8. Western Asset Mortgage Capital Corporation (NYSE:WMC)
Dividend Yield as of June 24: 12.60%
Western Asset Mortgage Capital Corporation (NYSE:WMC) is a mortgage finance REIT that manages a diversified portfolio of real estate-related securities and also invests in other financial assets.
In June, Jones Research mentioned Western Asset Mortgage Capital Corporation (NYSE:WMC) in its investors’ note, upgrading the stock to Buy. The firm expects the company’s book value per share to be approximately $2.10 as it is well-positioned to recover shareholder value.
On March 23, Western Asset Mortgage Capital Corporation (NYSE:WMC) trimmed its quarterly dividend by 33% due to the losses faced by the company in 2021. It currently offers a quarterly payout of $0.04 per share and its payout ratio stands at 57.4%. The stock’s dividend yield was recorded at 12.60% on June 24.
As per Insider Monkey’s database for Q1, 11 hedge funds owned stakes in Western Asset Mortgage Capital Corporation (NYSE:WMC), up from 9 in the previous quarter. The collective value of these stakes is over $7.8 million. Israel Englander’s Millennium Management was one of the company’s prominent shareholders in Q1, with stakes worth over $1.2 million.
7. Ready Capital Corporation (NYSE:RC)
Dividend Yield as of June 24: 13.56%
Ready Capital Corporation (NYSE:RC) is a New York-based real estate finance company that manages commercial real estate loans and related securities.
In Q1 2022, the company reported revenue of $151.2 million, which topped estimates by $10.29 million. However, its EPS of $0.52 missed consensus by $0.07. In addition to this, the company’s net book value per share came in at $15.22 in Q1, up from $14.89 per share recorded during the same period last year.
Thomas Steyer’s Farallon Capital was the leading shareholder of Ready Capital Corporation (NYSE:RC) in Q1 2022, owning stakes worth $8 million. Overall, 11 hedge funds tracked by Insider Monkey were bullish on the company in Q1, holding collective stakes worth roughly $31 million.
Ready Capital Corporation (NYSE:RC) has paid dividends to shareholders consistently for the last 8 years and has raised its payout just once in 2021, taking it above the pre-pandemic levels. Its quarterly dividend currently stands at $0.42 per share, with an attractive yield of 13.56%, as of the close of June 24.
6. Annaly Capital Management, Inc. (NYSE:NLY)
Dividend Yield as of June 24: 14.40%
Annaly Capital Management, Inc. (NYSE:NLY) is a leading real estate investment trust company based in New York. The company mainly invests in residential and commercial assets, with investment strategies across mortgage finance.
In June, Keefe Bruyette upgraded Annaly Capital Management, Inc. (NYSE:NLY) to Outperform, with a $6.75 price target. The firm presented a positive outlook on mortgage-backed securities and expects them to reach levels above historic averages in the coming quarters.
In Q1 2022, Annaly Capital Management, Inc. (NYSE:NLY) delivered stronger results, posting an EPS of $0.28, which surpassed estimates by $0.03. The company’s revenue for the quarter was recorded at $518.3 million, which also beat market consensus by $178.7 million.
On June 8, Annaly Capital Management, Inc. (NYSE:NLY) announced a quarterly dividend of $0.22 per share, in line with its previous dividend. The stock’s dividend yield was recorded at 14.40% on June 24.
At the end of March 31, Annaly Capital Management, Inc. (NYSE:NLY) experienced a decline in hedge fund positions, as 14 funds tracked by Insider Monkey owned stakes in the company, down from 21 in the previous quarter. The collective value of these stakes is over $72 million. Ken Griffin, Jim Simons, and Mike Vranos were some prominent shareholders of the New York-based company in Q1.
Just like The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and Exxon Mobil Corporation (NYSE:XOM) Annaly Capital Management, Inc. (NYSE:NLY) is also gaining ground among investors.
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Disclosure. None. 10 Dividend Stocks with Over 10% Yield is originally published on Insider Monkey.
