In this article, we discuss 10 value stocks with high dividend yields. If you want to check out more stocks in this list, see 5 Value Stocks with High Dividend Yields.
According to Bank of America, high yielding stocks have outperformed so far in 2022. Savita Subramanian, head of U.S. equity and quantitative strategy at BofA, told market participants to “double down” on dividend stocks, since she believes that in the current market, dividend returns will be more important than share price gains. Dividends can negate the downturn in stock prices effectively, as they have accounted for about 40% of the total stock market gains historically.
The current bearish market has not hit value stocks as immensely as growth names. Amid the broad market selloff, growth stocks especially in the technology sector have aggressively been discarded. Investors gravitate towards value names amid market volatility and high inflation. Combined with high dividend yields, value stocks make for safe and lucrative investments in the current macro backdrop.
Investors usually seek out dividend stocks like Johnson & Johnson (NYSE:JNJ), Apple Inc. (NASDAQ:AAPL), and Altria Group, Inc. (NYSE:MO), however, we shed light on value stocks with high dividend yields in this article.
Our Methodology
We selected stocks with P/E ratios of under 20 and dividend yields higher than 5% for this article. We ensured that the chosen stocks received positive analyst ratings and had strong hedge fund sentiment around them. In addition to that, we have mentioned the dividend yields and P/E ratios as of May 11.
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Value Stocks with High Dividend Yields
10. Lazard Ltd (NYSE:LAZ)
Dividend Yield as of May 11: 5.82%
P/E Ratio as of May 11: 6.51
Number of Hedge Fund Holders: 15
Lazard Ltd (NYSE:LAZ) is a financial advisory and asset management company operating in North, Central, and South America, Europe, Asia, and Australia. With a price to earnings ratio of 6.51 and a dividend yield of 5.82%, Lazard Ltd (NYSE:LAZ) is a notable high dividend value stock. Lazard Ltd (NYSE:LAZ) declared on April 27 a $0.47 per share quarterly dividend, in line with previous. The dividend is payable on May 20, to shareholders of record on May 9.
On April 28, Lazard Ltd (NYSE:LAZ) reported earnings for the first quarter of 2022, posting an EPS of $1.05, beating consensus estimates by $0.17. The $698.64 million revenue grew 7.84% year-over-year, outperforming market forecasts by $21.05 million.
Piper Sandler analyst Jeffrey Harte on April 7 reiterated an Overweight rating on Lazard Ltd (NYSE:LAZ) but lowered the firm’s price target on the shares to $45 from $49. Global M&A activity slowed significantly in March, the analyst told investors. While he believes the secular tailwinds for M&A activity remain in place, the analyst noted the prospects for a meaningful recovery in 2022 “diminish with each passing week/month of elevated macro-uncertainty and market volatility”.
According to Insider Monkey’s Q4 data, Lazard Ltd (NYSE:LAZ) was found in the public stock portfolios of 15 hedge funds, compared to 18 funds in the last quarter. John W. Rogers’ Ariel Investments is the biggest shareholder of the company, with more than 8 million shares worth $354.3 million.
In addition to Johnson & Johnson (NYSE:JNJ), Apple Inc. (NASDAQ:AAPL), and Altria Group, Inc. (NYSE:MO), Lazard Ltd (NYSE:LAZ) is a notable income stock to consider.
Here is what Longleaf Partners Small-Cap Fund has to say about Lazard Ltd (NYSE:LAZ) in its Q4 2021 investor letter:
“In Financials, we own asset manager Lazard and two newer companies, all three of which are harder to understand than the simpler banks that drove the sector. We are confident that this differentiated positioning that caused the relative drag this year will be the very driver of future absolute and relative outperformance.”
9. Blackstone Inc. (NYSE:BX)
Dividend Yield as of May 11: 5.52%
P/E Ratio as of May 11: 13.24
Number of Hedge Fund Holders: 62
Blackstone Inc. (NYSE:BX) is a New York-based alternative asset management firm engaged in real estate, private equity, hedge funds, credit, secondary funds of funds, public debt, and equity, among other multi-asset strategies. Blackstone Inc. (NYSE:BX) yields 5.52% as of May 11, offering a P/E ratio of 13.24. On April 21, Blackstone Inc. (NYSE:BX) declared a $1.32 per share quarterly dividend. The dividend was distributed to shareholders on May 9.
Blackstone Inc. (NYSE:BX) reported earnings for the first fiscal quarter of 2022 on April 21, announcing an EPS of $1.55, exceeding consensus forecasts by $0.50. Revenue for the period grew 71.06% from the prior-year quarter to $3.50 billion, outperforming market estimates by $988.17 million.
On April 22, Deutsche Bank analyst Brian Bedell maintained a Buy recommendation on Blackstone Inc. (NYSE:BX) but lowered the firm’s price target on the shares to $182 from $186 following the “strong” Q1 results. The analyst views Blackstone Inc. (NYSE:BX) as maintaining leadership in the alternative manager space in growth and fundraising.
According to Insider Monkey’s fourth quarter database, 62 hedge funds held long positions in Blackstone Inc. (NYSE:BX), up from 54 funds in the last quarter. The total stakes owned in Q4 amounted to $3.14 billion, compared to $2.54 billion in Q3. Rajiv Jain’s GQG Partners is a significant shareholder of the company, with a position worth $429.6 million.
Here is what Third Avenue Management Real Estate Value Fund has to say about Blackstone Inc. (NYSE:BX) in its Q1 2022 investor letter:
“Along these lines, funds affiliated with the Blackstone Group launched a takeover offer for one of the Fund’s holdings for the second time in the previous three quarters. In this case, the bid related to Preferred Apartment Communities, Inc. (NYSE:APTS)- a US-based Real Estate Investment Trust (“REIT”) that predominantly owns a portfolio of modern and well-located multi-family properties in the Sunbelt region as well as grocery-anchored retail properties across the same geographic footprint. While the Fund’s investment was only established in 2021, Blackstone’s (NYSE:BX) offer price represented a substantial premium to the Fund’s cost basis. The process undertaken by the Board to eliminate the disconnect between the company’s public and private market values also seemed robust.”
8. Camping World Holdings, Inc. (NYSE:CWH)
Dividend Yield as of May 11: 6.82%
P/E Ratio as of May 11: 4.89
Number of Hedge Fund Holders: 22
Camping World Holdings, Inc. (NYSE:CWH) was founded in 1966 and is headquartered in Lincolnshire, Illinois. The company offers recreational vehicles, protection plans, RV repair and maintenance services, and vehicle financing. Camping World Holdings, Inc. (NYSE:CWH)’s Q1 revenue of $1.66 billion grew 6.72% year-over-year, surpassing market estimates by $22.43 million.
Camping World Holdings, Inc. (NYSE:CWH) offers a dividend yield of 6.82% as of May 11. On February 22, the company declared a $0.625 per share quarterly dividend, a 25% increase from its earlier dividend of $0.50. The dividend was distributed on March 29.
On May 4, Raymond James analyst Joseph Altobello maintained an Outperform rating on Camping World Holdings, Inc. (NYSE:CWH) and lowered the firm’s price target on the stock to $40 from $45. According to the analyst, Camping World Holdings, Inc. (NYSE:CWH) posted “mixed” Q1 results and management cautioned that demand softened starting in February. The analyst is thus taking a “much more conservative approach” to his model.
According to Insider Monkey’s data, 22 hedge funds placed long bets on Camping World Holdings, Inc. (NYSE:CWH) at the end of December 2021, with collective stakes worth $386.5 million, compared to 23 funds in the earlier quarter, holding stakes in the company amounting to $324.2 million. David Abrams’ Abrams Capital Management is the largest shareholder of the company, with 5.10 million shares worth $206.3 million.
Here is what Wasatch Core Growth Fund has to say about Camping World Holdings, Inc. (NYSE:CWH) in its Q4 2020 investor letter:
“A relative underperformer for the quarter was Camping World Holdings, Inc. (CWH), which operates more than 160 retail locations specializing in recreational vehicles and associated parts, accessories and services. Even before the pandemic, similar to our analysis for YETI, we had already recognized the trends favoring Camping World’s market segment. Although the stock was relatively flat for the quarter, we think the price is still reasonable based on strong consumer interest and the business improvements made by the management team in recent years.”
7. Enbridge Inc. (NYSE:ENB)
Dividend Yield as of May 11: 6.26%
P/E Ratio as of May 11: 18.69
Number of Hedge Fund Holders: 21
Enbridge Inc. (NYSE:ENB) is an energy company based in Calgary, Canada, operating via Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services segments. Enbridge Inc. (NYSE:ENB) is a notable dividend aristocrat, with 2022 marking the 27th consecutive year in which the company raised its common share dividend.
On May 4, Enbridge Inc. (NYSE:ENB) declared a C$0.86 per share quarterly dividend, in line with previous. The dividend is payable on June 1, to shareholders of record on May 13. Enbridge Inc. (NYSE:ENB)’s dividend yield on May 11 came in at 6.26%. In Q1 2022, the company’s distributable cash flow increased to C$3.1 billion from C$2.8 billion in the same period last year.
National Bank analyst Patrick Kenny on May 9 raised the price target on Enbridge Inc. (NYSE:ENB) to C$60 from C$57 and maintained an Outperform rating on the shares.
Joseph Sirdevan’s Galibier Capital Management is a notable shareholder of Enbridge Inc. (NYSE:ENB) according to Insider Monkey’s Q4 data, with 1.10 million shares worth $43.3 million. Overall, 21 hedge funds were bullish on the stock at the end of December 2021.
Here is what ClearBridge Investments Dividend Strategy has to say about Enbridge Inc. (NYSE:ENB) in its Q3 2021 investor letter:
“We are meaningfully overweight energy, particularly within North American energy infrastructure. Enbridge and Williams, our two infrastructure holdings, possess crown jewel infrastructure assets. They each deliver meaningful proportions of the overall energy produced and consumed in North America. Their revenues are backed by long-term contracts with high-quality counterparties and have little direct commodity price exposure. Their growth has been driven by the increasing production of North American energy. The advent of unconventional oil and gas production (oil sand and shale) has made North America a low-cost competitor on a global basis. We expect strong North American production to be an enduring feature of global energy supply for decades to come.”
6. The Gap, Inc. (NYSE:GPS)
Dividend Yield as of May 11: 5.23%
P/E Ratio as of May 11: 18.98
Number of Hedge Fund Holders: 30
The Gap, Inc. (NYSE:GPS) is a California-based company offering apparel, accessories, and personal care products under the Old Navy, Gap, Banana Republic, and Athleta brands. The Gap, Inc. (NYSE:GPS)’s dividend yield on May 11 stood at 5.23%.
On May 10, The Gap, Inc. (NYSE:GPS) announced a per share dividend of $0.15, the same as the earlier quarter. The dividend is payable on July 27, to shareholders of the company as of the close of business on July 6.
Guggenheim analyst Robert Drbul upgraded The Gap, Inc. (NYSE:GPS) to Buy from Neutral with a $22 price target on April 25. The analyst contended that the shares are off about 70% from their highs, which presents an “attractive” buying opportunity, with “compelling” risk/reward. Due to the underlying value of Athleta and Old Navy, the analyst sees several potential catalysts that could drive value creation, including a likely sale or spinoff of Athleta, the analyst told investors.
Among the hedge funds tracked by Insider Monkey, 30 funds were long The Gap, Inc. (NYSE:GPS) at the end of the fourth quarter of 2021, compared to 28 funds in the prior quarter. Richard S. Pzena’s Pzena Investment Management is the leading shareholder of the company, owning 3.78 million shares worth $66.7 million.
Like Johnson & Johnson (NYSE:JNJ), Apple Inc. (NASDAQ:AAPL), and Altria Group, Inc. (NYSE:MO), The Gap, Inc. (NYSE:GPS) is an income stock on the radar of institutional investors.
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Disclosure: None. 10 Value Stocks with High Dividend Yields is originally published on Insider Monkey.
