In this article, we discuss 10 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.
5. Dynex Capital, Inc. (NYSE:DX)
Dividend Yield as of May 11: 9.60%
P/E Ratio as of May 11: 6.90
Number of Hedge Fund Holders: 4
Dynex Capital, Inc. (NYSE:DX) is a Virginia-based mortgage real estate investment trust that deals in leveraged mortgage-backed securities in the United States. Most of Dynex Capital, Inc. (NYSE:DX)’s securities are sponsored by US government agencies or entities like Fannie Mae and Freddie Mac.
On April 12, Dynex Capital, Inc. (NYSE:DX) declared a $0.13 per share monthly dividend, in line with previous. The dividend was distributed on May 2, to shareholders of the company as of April 22. Dynex Capital, Inc. (NYSE:DX)’s dividend yield on May 11 stood at 9.60%.
JonesTrading analyst Jason Stewart on April 28 reiterated a Buy recommendation on Dynex Capital, Inc. (NYSE:DX) but lowered the firm’s price target on the shares to $19 from $20. The company’s Q1 book value was “strong” and its leverage will keep on increasing through 2022 as it deploys “dry powder into a wider spread environment”, the analyst told investors in a research note. He cut the price target on Dynex Capital, Inc. (NYSE:DX) shares to account for the “high degree of macro uncertainty”, but said that it still represents a 40% total return opportunity.
Billionaire Ken Griffin’s Citadel Investment Group is the largest shareholder of Dynex Capital, Inc. (NYSE:DX) as of Q4 2021, with 86,657 shares worth $1.4 million. Overall, 4 hedge funds placed long bets on the stock at the end of the December quarter.
4. Arbor Realty Trust, Inc. (NYSE:ABR)
Dividend Yield as of May 11: 9.12%
P/E Ratio as of May 11: 8.33
Number of Hedge Fund Holders: 13
Arbor Realty Trust, Inc. (NYSE:ABR), a New York-based real estate investment trust, offers a dividend yield of 9.12%, with a price to earnings ratio of 8.33, which merits its inclusion in our list of high yielding value stocks. Arbor Realty Trust, Inc. (NYSE:ABR) has a portfolio of assets in the American multi-family, single-family rental, and commercial real estate markets.
On May 6, Arbor Realty Trust, Inc. (NYSE:ABR) posted its Q1 results, announcing earnings per share of $0.55, beating market estimates by $0.10. The first quarter revenue climbed 71.85% on a year-over-year basis to $84.14 million, topping analysts’ predictions by $17,200.
Arbor Realty Trust, Inc. (NYSE:ABR) declared on May 6 a $0.38 per share quarterly dividend, a 2.7% increase from its last dividend of $0.37. The dividend is payable on May 31, to shareholders of record on May 20.
Piper Sandler analyst Crispin Love initiated coverage of Arbor Realty Trust, Inc. (NYSE:ABR) on April 25 with an Overweight rating and a $20 price target. The analyst likes the company’s “diversified” revenue model, industry tailwinds in the multifamily bridge space, and “attractive valuation using a sum of the parts analysis”. He sees the recent share weakness amid macro volatility as a buying opportunity for investors.
According to the fourth quarter database of Insider Monkey, Arbor Realty Trust, Inc. (NYSE:ABR) was found in the public stock portfolios of 13 hedge funds, with combined stakes amounting to $99.3 million. Billionaire Leon Cooperman’s Omega Advisors is a significant stakeholder of the company, with 2.3 million shares worth close to $43 million.
3. American Eagle Outfitters, Inc. (NYSE:AEO)
Dividend Yield as of May 11: 5.33%
P/E Ratio as of May 11: 6.64
Number of Hedge Fund Holders: 31
American Eagle Outfitters, Inc. (NYSE:AEO) is a Pennsylvania-based retailer of clothing, accessories, and personal care products for men and women. With a P/E ratio of 6.64, American Eagle Outfitters, Inc. (NYSE:AEO) is a significant value stock to consider, offering a dividend yield of 5.33% as of May 11. The company declared a $0.18 per share dividend on March 2, which was distributed on March 24. American Eagle Outfitters, Inc. (NYSE:AEO) pays shareholders on a quarterly basis.
On April 11, JPMorgan analyst Matthew Boss assigned an Overweight rating to American Eagle Outfitters, Inc. (NYSE:AEO) but lowered the price target on the stock to $29 from $32 after the firm’s annual Retail Round-Up. The key takeaway from the event was “consumer resilience to date”, with management teams widely citing Q1 topline trends as planned despite headwinds. The analyst told investors that retail inventory levels were “healthy”, and the promotional backdrop was described as “rational”.
According to Insider Monkey’s database, 31 hedge funds were bullish on American Eagle Outfitters, Inc. (NYSE:AEO) at the end of Q4 2021, up from 24 funds in the earlier quarter. Select Equity Group held the leading position in the company, with 21.5 million shares worth $546.75 million.
2. Alliance Resource Partners, L.P. (NASDAQ:ARLP)
Dividend Yield as of May 11: 7.69%
P/E Ratio as of May 11: 12.55
Number of Hedge Fund Holders: 5
Alliance Resource Partners, L.P. (NASDAQ:ARLP) is an Oklahoma-based natural resource company, operating via four business divisions – Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties, and Coal Royalties. Noble Capital analyst Mark Reichman initiated coverage of Alliance Resource Partners, L.P. (NASDAQ:ARLP) on March 30 with an Outperform rating and a $22 price target.
Alliance Resource Partners, L.P. (NASDAQ:ARLP)’s dividend yield on May 11 stood at 7.69%. On April 26, Alliance Resource Partners, L.P. (NASDAQ:ARLP) declared a $0.35 per share quarterly dividend, a 40% increase from its previous dividend of $0.25. The dividend is distributable on May 13, to shareholders of record on May 6.
According to Insider Monkey’s Q4 data, 5 hedge funds were bullish on Alliance Resource Partners, L.P. (NASDAQ:ARLP), with collective stakes worth $79 million, compared to 6 funds in the earlier quarter, holding stakes in the company valued at $72.5 million. Adam Peterson’s Magnolia Capital Fund held the largest position in Alliance Resource Partners, L.P. (NASDAQ:ARLP), with 4.95 million shares worth $62.5 million.
1. City Office REIT, Inc. (NYSE:CIO)
Dividend Yield as of May 11: 6.06%
P/E Ratio as of May 11: 1.29
Number of Hedge Fund Holders: 14
City Office REIT, Inc. (NYSE:CIO) is an internally managed real estate investment trust that invests primarily in high-quality office properties located in the Southern and Western United States. City Office REIT, Inc. (NYSE:CIO) delivers a dividend yield of 6.06% as of May 11. City Office REIT, Inc. (NYSE:CIO) declared on March 15 a $0.20 per share quarterly dividend, which was distributed to shareholders on April 22.
On May 5, City Office REIT, Inc. (NYSE:CIO) reported its Q1 results, posting an FFO per share of $0.40, beating estimates by $0.01. The revenue of $44.9 million grew 13.6% year-over-year, surpassing market consensus by $1.64 million.
Riley analyst Craig Kucera on May 9 maintained a Buy recommendation on City Office REIT, Inc. (NYSE:CIO) but lowered the firm’s price target on the stock to $20 from $22 following the Q1 results. The analyst cited the significant decline in office real estate investment trust multiples for the target drop.
According to Insider Monkey’s Q4 data, City Office REIT, Inc. (NYSE:CIO) was found in the public stock portfolios of 14 hedge funds, with combined stakes of about $70 million. Jim Simons’ Renaissance Technologies held the leading stake in the company, worth $31.70 million.
You can also take a look at 10 High Yield Monthly Dividend Stocks and 10 Best Dividend Aristocrats to Buy for 2022.
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Disclosure: None. 10 Value Stocks with High Dividend Yields is originally published on Insider Monkey.
