In this article, we discuss 10 high dividend stocks with over 12% yield.
Dividend investing has always been an attractive option for investors who are looking for passive income, retired individuals, and for traders who like to have a safety net when financial troubles arise. However, during 2020, when the COVID-19 pandemic hit and companies faced massive losses due to supply chain disruptions, low demand, and halted production, around 30% of the stocks from the MSCI World Index declared dividend cuts, and since the global financial crisis of 2008, this was the highest rate of dividend reductions. Consequently, dividend investing fell out of favor in the short-term.
Heading into 2021, the International Monetary Fund projects the global economy to grow by 6.0%, a positive turnaround from last year’s 3.3% decline. President Joe Biden’s $2 trillion infrastructure plan also plays a significant part in the global recovery scenario, in addition to vaccine rollout, government stimulus packages, and consumer demand slowly reaching the pre-pandemic 2019 level.
A strong cyclical economic recovery in 2021 and 2022 is expected to boost company earnings in general. Many of the companies that had to make dividend cuts during the pandemic are likely to reinstate dividend payouts as economic conditions improve.
Dividend payments in Q2 2021 gained 26% from the prior-year quarter, equaling $471.7 billion, which was just 6.8% below Q2 2019. Dividend payout is expected to hit $1.39 trillion in 2021, suggesting a stronger than expected recovery.
Despite the short-term underperformance of dividend paying stocks, dividend companies are good bets for the longer term, since they have stable performance and the management is more disciplined and usually steers a prudent course of action and corporate strategy. High dividend yields are an attractive factor, and dividend investing will remain a popular investment philosophy, especially since there is an aging demographic in most of the developed countries that turns towards the equity market for income after retirement.
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Some of the notable high dividend stocks include Exxon Mobil Corporation (NYSE:XOM), AbbVie Inc. (NYSE:ABBV), and Vale S.A. (NYSE:VALE), among others discussed in detail below.
Our Methodology
We screened for stocks that offer a high dividend yield of more than 12%, and selected 10 stocks that have long-term growth catalysts, strong fundamentals, and mostly positive analyst ratings. The stocks have been ranked in the ascending order according to their dividend yields.
High Dividend Stocks with Over 12% Yield
10. Gilat Satellite Networks Ltd. (NASDAQ:GILT)
Dividend Yield: 12.84%
Number of Hedge Fund Holders: 10
Gilat Satellite Networks Ltd. (NASDAQ:GILT) is a major global provider of satellite-based communication equipment from Israel. Gilat Satellite Networks Ltd. announced on November 30 that it had signed a contract worth over $5 million for solid state amplifiers with a Tier-1 US global military terminal provider. This will enable satellite communication for militaries around the world.
Africa Mobile Networks, on November 15, deployed Gilat Satellite Networks Ltd.’s services of cellular backhaul terminals to serve multiple Tier-1 Telcos in Africa. Similarly, in October, the company disclosed that a Tier-1 mobile operator in Asia expanded its 4G network with Gilat Satellite Networks Ltd.’s cellular backhaul solution.
Of the 10 hedge funds that were bullish on Gilat Satellite Networks Ltd. in the third quarter, Jim Simons’ Renaissance Technologies holds a leading position in the company, increasing its stake by 4% in Q3. Jim Simons’ fund owns 1.24 million Gilat Satellite Networks Ltd. shares, worth $11.17 million.
Gilat Satellite Networks Ltd. is a notable high dividend stock, in addition to Exxon Mobil Corporation, AbbVie Inc., and Vale S.A..
9. Icahn Enterprises L.P. (NASDAQ:IEP)
Dividend Yield: 15.97%
Number of Hedge Fund Holders: 4
Icahn Enterprises L.P. (NASDAQ:IEP) is an American conglomerate company from Florida, founded and primarily controlled by the legendary American activist investor, Carl Icahn. Icahn Enterprises L.P. invests mainly in the energy, automotive, food packaging, metals, real estate, and home fashion sectors.
Carl Icahn proposed a tender offer of $75 per share in cash for Southwest Gas Holdings, Inc. (NYSE:SWX) on October 14, via a wholly owned subsidiary of Icahn Enterprises L.P., stating that the company has poor management. Icahn Enterprises L.P. assured that upon acquisition, all stockholders of Southwest Gas Holdings, Inc. (NYSE:SWX) would have the option for immediate liquidity at a premium for those stockholders that choose to tender their shares of common stock into the offer. Similarly, stakeholders who would like to hold their shares for the long-term, would also be facilitated by Icahn Enterprises L.P..
Offering a dividend yield of 15.97%, Icahn Enterprises L.P. is one of the best high yield stocks at an affordable price. Murray Stahl’s Horizon Asset Management is one of the 4 hedge funds that were long Icahn Enterprises L.P. in Q3 2021, holding a $28 million position in the company.
8. Orchid Island Capital, Inc. (NYSE:ORC)
Dividend Yield: 17.14%
Number of Hedge Fund Holders: 10
Orchid Island Capital, Inc. (NYSE:ORC) operates in the financial sector, actively investing in residential mortgage-backed securities on a leveraged basis. To be qualified as a real estate investment trust rather than an investment company under the US tax laws, Orchid Island Capital, Inc. distributes 90% of the REIT taxable income to stakeholders on a monthly basis. Orchid Island Capital, Inc. has consistently been paying dividends since 2013, making it one of the best high dividend stocks with a forward yield of 17.14%.
A $0.065 per share monthly dividend was announced on December 9 by Orchid Island Capital, Inc., payable on January 27 to shareholders of record on December 31.
In addition to Exxon Mobil Corporation, AbbVie Inc., and Vale S.A., Orchid Island Capital, Inc. is a decent option for income investors.
Dmitry Balyasny’s Balyasny Asset Management increased its stake in Orchid Island Capital, Inc. by 1131% in the third quarter, being the leading stakeholder of the company with an $8.4 million position. Overall, 10 hedge funds monitored by Insider Monkey were long Orchid Island Capital, Inc., reporting total stakes worth $16.1 million.
7. Sculptor Capital Management, Inc. (NYSE:SCU)
Dividend Yield: 17.39%
Number of Hedge Fund Holders: 15
Sculptor Capital Management, Inc. (NYSE:SCU), one of the largest diversified global investment asset managers, posted its Q3 earnings on November 3. The reported earnings per share of $0.58 beat estimates by $0.06. Revenue for the quarter equaled $100.49 million, outperforming estimates by $5 million.
Sculptor Capital Management, Inc. serves global institutional clients including corporate pension funds, foundations and endowment funds, fund of funds, high net worth family offices, public pension funds, and sovereign wealth funds.
On November 5, Citi analyst William Katz lowered the firm’s price target on Sculptor Capital Management, Inc. to $43.50 from $55 and kept a Buy rating on the shares.
It was announced on November 11 that Sculptor Capital Management, Inc. would pay a quarterly dividend of $0.28 per common share, to shareholders of record on November 15, payable on November 22. Sculptor Capital Management, Inc. has been making dividend payments since 2008.
In the third quarter, the database of 867 elite hedge funds maintained by Insider Monkey reported that 15 funds were bullish on Sculptor Capital Management, Inc., with total stakes amounting to $84.62 million.
6. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Dividend Yield: 17.72%
Number of Hedge Fund Holders: 23
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is a state-owned multinational Brazilian petroleum corporation that made it to our list of high dividend stocks, with a forward yield of 17.72%, offering dividend payouts since 1994. Petróleo Brasileiro S.A. – Petrobras fulfills the energy and petroleum requirements of the automotive, domestic, industrial, aviation, and maritime industries.
Petróleo Brasileiro S.A. – Petrobras announced third quarter earnings on October 28, posting an EPS of $0.51, beating estimates by $0.02. Revenue for the period equaled $21.61 billion, missing estimates by $264.07 million. PBR HSBC analyst Lilyanna Yang upgraded the stock to Buy from Hold with a $13 price target on November 16.
On November 22, Petróleo Brasileiro S.A. – Petrobras announced a quarterly dividend of $0.789 per share, payable on December 22 to shareholders of record on December 3.
At the end of September, 23 hedge funds in the database of elite funds maintained by Insider Monkey were long Petróleo Brasileiro S.A. – Petrobras, with Rajiv Jain’s GQG Partners being the biggest company stakeholder, holding a $1.79 billion position in Petróleo Brasileiro S.A. – Petrobras.
Petróleo Brasileiro S.A. – Petrobras is a notable high dividend stock, just like Exxon Mobil Corporation, AbbVie Inc., and Vale S.A..
5. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Dividend Yield: 17.80%
Number of Hedge Fund Holders: 22
On November 17, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) reported solid Q3 earnings, posting an EPS of $12.16, topping estimates by $2.83. Revenue over the period amounted to $3.14 billion, outperforming estimates by $374.27 million. The stock jumped 10% to $54.93 after the Q3 earnings beat.
ZIM Integrated Shipping Services Ltd. is a cargo shipping company from Israel, founded in 1945. It is one of the top 20 global carriers, offering multiple services including container shipping, refrigerated cargo, and logistics services worldwide.
The CEO and President of ZIM Integrated Shipping Services Ltd., Eli Glickman, announced on November 17 that the company will be paying in December 2021 a $2.50 per share interim dividend for the third quarter, representing approximately 20% of the quarterly net income.
Abrams Bison Investments is one of the leading stakeholders of ZIM Integrated Shipping Services Ltd., increasing its stake in the company by 155% in Q3, holding 1.56 million shares worth $79.4 million. Similarly, of the 22 funds that were bullish on ZIM Integrated Shipping Services Ltd. by the end of September 2021, prominent stakeholders including Renaissance Technologies, Arrowstreet Capital, and Citadel Investment Group increased their positions in ZIM Integrated Shipping Services Ltd. by 399%, 369%, and 178% in the third quarter, respectively.
Here is what Evermore Global Advisors has to say about ZIM Integrated Shipping Services Ltd. in its Q2 2021 investor letter:
“ZIM Integrated Shipping Services (ZIM) was the largest contributor to the Fund’s performance during the second quarter. With a market cap of $5.2 billion, ZIM is an Israel-based containership operator that had its initial public offering on the New York Stock Exchange this past January. As a reminder, we discussed ZIM at length in the Q1 2021 quarterly commentary as one of the new investments that we initiated during that period.
There were several notable developments during the second quarter. Given the company’s unique asset light business model and targeted, global niche approach, ZIM continued to generate exceptionally strong cash flows. ZIM ended the period with approximately $1.25 billion in cash and about $915 million in net debt. Due to the strong operational performance, the company further strengthened its balance sheet by redeeming its Series 1 and Series 2 unsecured notes due in 2023. With the early redemption of the unsecured notes, ZIM was no longer subject to certain dividend restrictions, and it declared a special dividend of $2 per share, which will be payable on Sept 15th (goes ex on August 24th). Lastly, management revised its 2021 full year EBITDA guidance from $1.4 – 1.6 billion to $2.5 – $2.7 billion, which was a sizable increase compared to the levels set last March. To that end, we continue to have high conviction in our position in ZIM.”
4. Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN)
Dividend Yield: 20.17%
Number of Hedge Fund Holders: 10
Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN) is an international shipping company that owns a range of dry bulk carriers and tankers, and operates primarily in the dry bulk segment, in addition to transporting petroleum products such as petrol, diesel, jet fuel, naphtha, and heavy fuel oil. Headquartered in Singapore, Grindrod Shipping Holdings Ltd. also operates out of Durban, South Africa and London, England.
On November 17, Grindrod Shipping Holdings Ltd. announced earnings for the quarter ending September 30. EPS for the period amounted to $2.28, exceeding estimates by $0.19. Revenue for the third quarter equaled $135.14 million, beating estimates by $19.06 million.
Jefferies analyst Randy Giveans on October 28 initiated coverage of Grindrod Shipping Holdings Ltd. with a Buy rating and a $20 price target. The analyst stated that the dry bulk shipping industry has an attractive outlook and Grindrod Shipping Holdings Ltd. has “a fortress balance sheet,”, with shares trading at a 35% discount to net asset value.
10 hedge funds monitored by Insider Monkey in the third quarter reported owning stakes in Grindrod Shipping Holdings Ltd., with total stakes worth $27.6 million. This is an increase as compared to the preceding quarter, when 2 hedge funds were long Grindrod Shipping Holdings Ltd., with a total stake value of $13.2 million.
3. Labrador Iron Ore Royalty Corporation (OTC:LIFZF)
Dividend Yield: 22.46%
Number of Hedge Fund Holders: N/A
Labrador Iron Ore Royalty Corporation (OTC:LIFZF) is a Canadian investment company with an equity interest in the privately held Iron Ore Company of Canada, a significant producer and exporter of premium iron ore pellets and high-grade concentrate. Labrador Iron Ore Royalty Corporation is one of the best high dividend stocks, offering dividends since 2012, with a forward yield of 22.46%.
Labrador Iron Ore Royalty Corporation announced earnings for the third quarter on November 5. The company posted a GAAP EPS of C$1.64, along with a revenue of C$74.71 million, which was up 41.3% year-over-year.
Scotiabank analyst Orest Wowkodaw on November 5 lowered the price target on Labrador Iron Ore Royalty Corporation to C$40 from C$41 and kept an Outperform rating on the shares.
2. Golden Ocean Group Limited (NASDAQ:GOGL)
Dividend Yield: 24.13%
Number of Hedge Fund Holders: 13
Golden Ocean Group Limited (NASDAQ:GOGL), a dry bulk shipping company headquartered in Hamilton, Bermuda, is one of the best high dividend stocks, offering a dividend yield of 24.13%. Golden Ocean Group Limited declared a quarterly dividend per share of $0.85 on December 7, which reflected a 70% increase from the prior quarter dividend of $0.50. The dividend would be payable on December 16 to shareholders of record on December 9.
Golden Ocean Group Limited posted on November 24 its Q3 results. EPS in the quarter equaled $0.92, beating estimates by $0.27. The revenue jumped 115.95% year-over-year to $305.88 million, outperforming estimates by $43.93 million.
Arrowstreet Capital, the leading stakeholder of Golden Ocean Group Limited, increased its stake in the company by 4% in the third quarter. The hedge fund holds 4.3 million Golden Ocean Group Limited shares, worth $45.88 million. A total of 13 hedge funds were bullish on the stock in Q3, with total stakes amounting to $106.5 million.
1. Kumba Iron Ore Limited (OTC:KIROY)
Dividend Yield: 24.36%
Number of Hedge Fund Holders: N/A
Kumba Iron Ore Limited (OTC:KIROY) is a South African iron ore mining company, headquartered in Gauteng. Kumba Iron Ore Limited is the fourth largest iron ore producer worldwide and the largest in Africa. With a forward dividend yield of 24.36%, Kumba Iron Ore Limited is one of the best high dividend stocks to invest in.
Kumba Iron Ore Limited reported that performance in 2021 increased by 7% as compared to 2020, and the company expects to deliver 35% growth over the next decade at a 50% margin.
Kumba Iron Ore Limited has delivered $10.3 billion in cash returns to shareholders since 2017 and $4 billion in the second half of 2021 alone, making it an attractive high dividend stock.
On November 11, Sunday Times awarded Kumba Iron Ore Limited the first position in its list of the top 100 companies that earned the highest returns for their stakeholders over the past five years.
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This article is originally published at Insider Monkey.
