In this article, we are going to talk about our list of the 10 dividend stocks with over 11% yield. You can skip our detailed analysis about dividend investing and go directly to the 5 Dividend Stocks with over 11% Yield.
A dividend payment is a percentage of the company’s revenue distributed to shareholders, either as a congratulatory treat for good, stable times, or preemptive appeasement for bad times to prevent sell-offs. Historically, companies that pay out dividends have performed better than companies that don’t. J.P. Morgan Asset Management released a report in 2013, which found that companies that initiated and grew their dividend payments between 1972 and 2012 generated annualized gains of 9.5% over these four decades. In contrast, companies that didn’t offer any dividends returned a measly 1.6% over the same time frame. That is why a company with solid growth potential offering a high dividend yield is always on the radar of investors.
Today, some of the most exciting dividend stocks with high yields include The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), The Coca-Cola Company (NYSE:KO), Vale S.A. (NYSE:VALE), and BHP Group (NYSE:BHP), among others discussed in detail below.
Photo by Nathan Dumlao on Unsplash
Our Methodology
We picked the top 10 dividend stocks with a dividend yield above 11%. All the companies in this list have a minimum market cap of $200 million and are based in the United States.
With this context in mind, let’s now take a look at our list of the 10 dividend stocks with over 11% yield.
10 Dividend Stocks with over 11% Yield
10. Sprague Resources LP (NYSE:SRLP)
Number of Hedge Fund Holders: 1
Dividend Yield: 12.63% (as of December 9)
First up on our list of stocks with high dividend yields is Sprague Resources LP (NYSE:SRLP), a US-based firm that deals in the purchase, distribution, storage, and sale of refined products and natural gas. The company operates through its segments: Refined Products, Natural Gas, Materials Handling, and Other Operations.
In the third quarter of 2021, 1 hedge fund reported owning shares in Sprague Resources LP (NYSE:SRLP), at a value of $334,000.
In October, Sprague Resources LP (NYSE:SRLP) reported plans to cut its distribution by 35% in a bid to fund growth capital projects and to strengthen its balance sheet.
Just like The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and The Coca-Cola Company (NYSE:KO), Vale S.A. (NYSE:VALE), and BHP Group (NYSE:BHP), Sprague Resources LP (NYSE:SRLP) is a top dividend stock for those looking to invest.
9. USA Compression Partners, LP (NYSE:USAC)
Number of Hedge Fund Holders: 2
Dividend Yield: 13.95% (as of December 9)
USA Compression Partners, LP (NYSE:USAC) offers compression services to independent producers and oil companies in the United States. The company also develops, operates, and maintains gas compression packages used by gas pipelines.
2 hedge funds out of 867 tracked by Insider Monkey reported owning shares in USA Compression Partners, LP (NYSE:USAC), as of the third quarter.
USA Compression Partners, LP (NYSE:USAC) offers a dividend yield of 13.95% as of December, with its management understood to be committed to this generous payout, even though a cyclical slowdown in the compressor business and a reliance on debt has put the company at risk of violating its debt agreements.
8. Green Plains Partners LP (NASDAQ:GPP)
Number of Hedge Fund Holders: 3
Dividend Yield: 12.54% (as of December 9)
Green Plains Partners LP (NASDAQ:GPP) offers fuel transportation and storage services in the United States, and currently offers a high dividend yield of 12.54%. 3 hedge funds out of 867 tracked by Insider Monkey disclosed ownership of stakes in Green Plains Partners LP (NASDAQ:GPP), with a combined value of $28.76 million. The same number of hedge funds reported owning shares in the company a quarter ago as well.
Jeff Osher’s No Street Capital is the top stakeholder of Green Plains Partners LP (NASDAQ:GPP) shares, holding 2.13 million shares with a combined value of $28.11 million. Green Plains Partners LP (NASDAQ:GPP) gained 60.45% in the last year, and 78.62% in the year to date, as of December 9. Earnings per share for the third quarter came in at $0.47, which was in-line with consensus estimates.
The company has seen its distributions surge by more than 200% after recently refinancing its credit facility. Green Plains Partners LP (NASDAQ:GPP) covers these distribution payments using its ample free cash flow, although growth seems a bit optimistic given the almost negligent capital expenditure. The company’s low leverage and strong liquidity makes its financial position very healthy and their distributions can be considered safe and sustainable.
In addition to The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and The Coca-Cola Company (NYSE:KO), dividend investors are paying attention to Green Plains Partners LP (NASDAQ:GPP) .
7. Icahn Enterprises L.P. (NASDAQ:IEP)
Number of Hedge Fund Holders: 4
Dividend Yield: 15.99% (as of December 9)
With a yield of 15.99% as of December 9, Icahn Enterprises L.P. (NASDAQ:IEP) ranks 7th on our list of stocks with a very high dividend yield. As of the third quarter, 4 hedge funds out of 867 elite funds tracked by Insider Monkey reported ownership of stakes in Icahn Enterprises L.P. (NASDAQ:IEP). The combined value of these stakes stood at $12.38 billion. The same number of hedge funds reported owning stakes in the company a quarter ago, with a combined value of $13.11 billion.
Icahn Enterprises L.P. (NASDAQ:IEP) is an industrial conglomerate with interests in automobiles, energy, food packaging, investment, and pharmaceuticals. Billionaire Carl Icahn is the top stakeholder in the company, with 247.10 million shares valued at $12.30 billion. The company was founded by Carl Icahn, who retains 95% of its stock.
In October, Icahn Enterprises L.P. (NASDAQ:IEP) announced the sale of 100% of its equity in scrap metal processor PSC Metals to SA Recycling, for $290 million. This transaction is expected to close by the end of this year.
6. Newtek Business Services Corp. (NASDAQ:NEWT)
Number of Hedge Fund Holders: 5
Dividend Yield: 14.15% (as of December 9)
Newtek Business Services Corp. (NASDAQ:NEWT) offers business and financial services to small and medium-sized companies in the United States.
Out of 867 hedge funds tracked by Insider Monkey, 5 hedge funds reported owning positions in Newtek Business Services Corp. (NASDAQ:NEWT), with a combined value of $7.82 million. This shows a bullish trend from last quarter where 4 hedge funds held $7.2 million worth of stakes in the company.
In addition to The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and The Coca-Cola Company (NYSE:KO), Vale S.A. (NYSE:VALE), and BHP Group (NYSE:BHP), Newtek Business Services Corp. (NASDAQ:NEWT) is an exciting dividend stock on the radar of investors.
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Disclosure: None. 10 Dividend Stocks with over 11% Yield is originally published on Insider Monkey.
