In this article, we will be taking a look at 11 cheap high dividend stocks to buy right now.
Dividend stocks are perhaps some of the only ones offering a plethora of ways for investors to multiply their wealth. Receiving cash payments in dividends on a monthly, quarterly, or yearly basis, or reinvesting dividends through dividend reinvestment plans or DRIPs are only two such methods. Hence, dividend stocks like Pepsico, Inc. (NASDAQ:PEP), Exxon Mobil Corporation (NYSE:XOM), Target Corporation (NYSE:TGT), and Chevron Corporation (NYSE:CVX) have continued to be some of the most popular investment options out there.
There are numerous reasons for this continued popularity, as Morgan Stanley points out in a piece on dividend stocks. One such reason is that dividend yields often ensure stock safety during a market crash, because of something known as “yield support”. Using an imagined situation, the report explains how during a market collapse, if forced to choose between two stocks to sell, one is likelier to sell a stock that does not pay a dividend over the stock that does.
Our Methodology
Insider Monkey tracks hedge fund data for 873 hedge funds, and we have used this data and research to pick cheap high dividend stocks popular among such investors today. Secondly, we have mentioned dividend yields for each stock as well, ranking them from the lowest to the highest.
Why pay attention to hedge fund sentiment while choosing stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Cheap High Dividend Stocks to Buy Right Now
11. Global Self Storage, Inc. (NASDAQ:SELF)
Number of Hedge Fund Holders: 1
Dividend Yield: 5.1%
Share Price as of November 8th: $5.11
Global Self Storage, Inc. (NASDAQ:SELF), a self-administered and managed real estate investment trust (REIT), deals with self-storage properties. The company is one of the best cheap high dividend stocks to buy right now and is based in New York. Its properties offer affordable, easily accessible, and secure storage for residential and commercial customers.
In April, Aegis initiated coverage of shares of Global Self Storage, Inc. (NASDAQ:SELF) with a Buy rating.
By the end of the second quarter of 2021, one hedge fund out of the 873 tracked by Insider Monkey held stakes in Global Self Storage, Inc. (NASDAQ:SELF) worth roughly $381,000. This is compared to one hedge fund in the previous quarter with a total stake value of approximately $330,000.
Like Pepsico, Inc. (NASDAQ:PEP), Exxon Mobil Corporation (NYSE:XOM), Target Corporation (NYSE:TGT) and Chevron Corporation (NYSE:CVX), is a good stock to invest in.
10. National CineMedia, Inc. (NASDAQ:NCMI)
Number of Hedge Fund Holders: 13
Dividend Yield: 5.3%
Share Price as of November 8th: $3.76
National CineMedia, Inc. (NASDAQ:NCMI) is a cinema advertising network in North America. The company sells advertising services to national, regional, and local businesses. It can be considered a good option for investors seeking cheap high dividend stocks to buy right now.
This November, Wedbush analyst Michael Pachter upgraded National CineMedia, Inc. (NASDAQ:NCMI) from Neutral to Outperform. The analyst also has a $5 price target on the stock.
National CineMedia, Inc.’s (NASDAQ:NCMI) second-quarter earnings report showed an EPS of -$0.28 and revenue of $14 million, up 250% year over year. The revenue beat the previous quarter’s $5.4 million figure as well. Finally, National CineMedia, Inc. (NASDAQ:NCMI) has also gained 4.16% year to date and 25.75% in the past year.
According to our data, 13 hedge funds out of 873 held stakes in National CineMedia, Inc. (NASDAQ:NCMI) in the second quarter of 2021. The total value of their stakes was $21.1 million. Comparatively, in the first quarter, 11 hedge funds held stakes in the company worth $14.6 million.
9. United Insurance Holdings Corp. (NASDAQ:UIHC)
Number of Hedge Fund Holders: 6
Dividend Yield: 5.5%
Share Price as of November 8th: $4.33
United Insurance Holdings Corp. (NASDAQ:UIHC) is a property and casualty insurance holding company. The company sources, writes, and services residential personal and commercial property. With its yield and incredibly low share price, it is good cheap high dividend stock to buy right now.
This August, Raymond James analyst Gregory Peters placed a Market Perform rating on shares of United Insurance Holdings Corp. (NASDAQ:UIHC).
The second-quarter report for United Insurance Holdings Corp. (NASDAQ:UIHC) showed an EPS of -$0.57 and revenue of $155.45 million.
Insider Monkey’s hedge fund data for the second quarter showed that six hedge funds out of 873 held stakes in United Insurance Holdings Corp. (NASDAQ:UIHC) worth $6.9 million. In the first quarter, seven hedge funds held stakes in the stock worth $9.7 million.
Like Pepsico, Inc. (NASDAQ:PEP), Exxon Mobil Corporation (NYSE:XOM), Target Corporation (NYSE:TGT), and Chevron Corporation (NYSE:CVX), United Insurance Holdings Corp. (NASDAQ:UIHC) is a suitable option for income investors.
8. Franklin Street Properties Corp. (NYSE:FSP)
Number of Hedge Fund Holders: 11
Dividend Yield: 7.4%
Share Price as of November 8th: $4.86
Franklin Street Properties Corp. (NYSE:FSP) is a Massachusetts-based REIT focused on infill and central business district office properties in the US Sunbelt and Mountain West. The stock is considered a good cheap high dividend stock to buy right now.
The earnings history for Franklin Street Properties Corp. (NYSE:FSP) in the second quarter of 2021 showed an FFO of $0.14. The company’s revenue was $55.72 million, beating estimates by $0.57 million. The stock has also gained 15.99% year to date and 4.29% in the past year.
Out of 873, 11 hedge funds held stakes in Franklin Street Properties Corp. (NYSE:FSP) in the second quarter, compared to 12 hedge funds in the previous quarter. The stake values were $16.8 million and $22.9 million respectively.
7. Sachem Capital Corp. (NYSE:SACH)
Number of Hedge Fund Holders: 4
Dividend Yield: 8.3%
Share Price as of November 8th: $5.78
Sachem Capital Corp. (NYSE:SACH) is a mortgage REIT that originates, underwrites, funds, services, and manages short-term loans on property mainly in Connecticut. With a share price of under $10 is among the top cheap high dividend stocks to buy right now.
Janney Montgomery Scott holds a Buy rating on shares of Sachem Capital Corp. (NYSE:SACH) as of this June.
The earning history for the company shows an FFO of $0.12, beating estimates by $0.02, in the third quarter. The revenue was $8.52 million, beating estimates by $2.02 million. Sachem Capital Corp. (NYSE:SACH) has also gained 10.52% in the past 6 months and 35.68% year to date.
Four out of 873 hedge funds held stakes in Sachem Capital Corp. (NYSE:SACH) in the second quarter. One hedge fund held stakes in the company in the first quarter. The stake values were $5.9 million and $1.01 million respectively.
6. MFA Financial, Inc. (NYSE:MFA)
Number of Hedge Fund Holders: 20
Dividend Yield: 8.6%
Share Price as of November 8th: $4.65
MFA Financial, Inc. (NYSE:MFA) operates through its subsidiaries as an American REIT investing in residential mortgage assets. The company is a good option for income investors looking for cheap high dividend stocks to buy right now. It is based in New York and was incorporated in 1997.
JMP Securities analyst Steven DeLaney, as of this April, holds an Outperform rating on shares of MFA Financial, Inc. (NYSE:MFA).
The company’s latest third-quarter earnings report shows an FFO of $0.27, beating estimates by $0.16, and a revenue of $61.82 million. The revenue also beat estimates by $19.89 million and was up 511.07% year over year. MFA Financial, Inc. (NYSE:MFA) has also gained 7.14% in the past 6 months and 23.67% year to date.
According to our data, 20 hedge funds out of 873 held stakes in MFA Financial, Inc. (NYSE:MFA) in the second quarter, and 16 hedge funds held stakes in the company in the first quarter. In the former, the total stake value was $151 million, while in the latter, it was $104 million.
Like Pepsico, Inc. (NASDAQ:PEP), Exxon Mobil Corporation (NYSE:XOM), Target Corporation (NYSE:TGT), and Chevron Corporation (NYSE:CVX), MFA Financial, Inc. (NYSE:MFA) is a notable dividend investment option.
5. New York Mortgage Trust, Inc. (NASDAQ:NYMT)
Number of Hedge Fund Holders: 16
Dividend Yield: 9.1%
Share Price as of November 8th: $4.36
New York Mortgage Trust, Inc. (NASDAQ:NYMT) is a financials company and mortgage real estate investment trust. The stock, with a share price under $5, is a good option for income investors looking for cheap high dividend stock to buy right now. The company’s investments include business purpose loans and structure multi-family property investments, among others.
This May, B. Riley’s Matt Howlett began covering shares of New York Mortgage Trust, Inc. (NASDAQ:NYMT) with a Buy rating. The analyst also has a $6 price target on the stock.
The earnings history for New York Mortgage Trust, Inc. (NASDAQ:NYMT) shows an FFO of $0.10 and a revenue of $31.03 million, up 21.55% year over year for the third quarter. The stock has gained 20.84% year to date and 51.05% in the past year as well.
Insider Monkey’s hedge fund data shows 16 hedge funds holding stakes in New York Mortgage Trust, Inc. (NASDAQ:NYMT) in the second quarter, and 12 hedge funds holding stakes in the company in the first quarter. The stake values were $32.3 million and $29 million respectively.
4. Western Asset Mortgage Capital Corp (NYSE:WMC)
Number of Hedge Fund Holders: 12
Dividend Yield: 9.7%
Share Price as of November 8th: $2.48
Western Asset Mortgage Capital Corp (NYSE:WMC), a US-based REIT, acquires, invest in, finances, and manages agency and non-agency residential mortgage-backed securities and commercial mortgage-backed securities, alongside other investments. The company, with a dividend yield of over 9% and a share price of under $5 is among the best cheap high dividend stocks to buy right now.
The third-quarter earnings report for Western Asset Mortgage Capital Corp (NYSE:WMC) shows an FFO of $0.06, beating estimates by $0.01. The company’s revenue was $7.16 million, beating estimates by $0.26 million. Western Asset Mortgage Capital Corp (NYSE:WMC) has also gained about 9.47% in the past year.
As of the second quarter of 2021, 12 hedge funds held stakes in Western Asset Mortgage Capital Corp (NYSE:WMC) worth $14.9 million. In the previous quarter, eight hedge funds held stakes in the company worth $15 million.
3. Oxford Square Capital Corp. (NASDAQ:OXSQ)
Number of Hedge Fund Holders: 3
Dividend Yield: 9.7%
Share Price as of November 8th: $4.29
Oxford Square Capital Corp. (NASDAQ:OXSQ), a financials company operating in the asset management and custody banks industry, invests in public and private companies. If one is seeking cheap high dividend stocks to buy right now, it is a good option for them.
As of this May, Ladenburg’s Mickey Schleien holds a Neutral rating on shares of Oxford Square Capital Corp. (NASDAQ:OXSQ).
The company’s third-quarter reports show and NII of $0.08, beating the previous quarter’s $0.06 NII. The company’s TII was $9.80 million, also beating the previous quarter’s $7.84 million figure. Finally, Oxford Square Capital Corp. (NASDAQ:OXSQ) has also gained 34.79% year to date and 60.54% in the past year.
Three hedge funds out of 873 held stakes in Oxford Square Capital Corp. (NASDAQ:OXSQ) in the second quarter, worth $5.8 million. Five hedge funds held stakes in the company in the previous quarter, worth $4.03 million.
2. Invesco Mortgage Capital Inc (NYSE:IVR)
Number of Hedge Fund Holders: 10
Dividend Yield: 10.7%
Share Price as of November 8th: $3.32
Invesco Mortgage Capital Inc (NYSE:IVR) is an REIT that deals with mortgage-backed securities and other related assets. It is a suitable option for income investors on the lookout for a cheap high dividend stock to buy right now.
Invesco Mortgage Capital Inc’s (NYSE:IVR) third-quarter report showed that the company’s FFO was $0.10, beating estimates by $0.01, and its revenue was $46.45 million, beating estimates by $3.45 million. The company has also gained 0.45% year to date and 6.94% in the past year.
In the second quarter, 10 hedge funds held stakes in Invesco Mortgage Capital Inc (NYSE:IVR) worth $37.3 million. Comparatively, in the first quarter, 14 hedge funds held stakes in the company worth $57.6 million.
1. Orchid Island Capital, Inc. (NYSE:ORC)
Number of Hedge Fund Holders: 9
Dividend Yield: 15.6%
Share Price as of November 8th: $5
Orchid Island Capital, Inc. (NYSE:ORC) is a specialty finance company. It’s a good option for those on the lookout for cheap high dividend stocks to buy right now. The company invests in residential mortgage-backed securities in the US.
Orchid Island Capital, Inc. (NYSE:ORC), in its third-quarter report, had an FFO of $0.22 and a revenue of $32.60 million. The revenue beat estimates by $3.70 million.
In September, JonesTrading’s Jason Stewart upgraded shares of Orchid Island Capital, Inc. (NYSE:ORC) to Hold.
Nine hedge funds held stakes in Orchid Island Capital, Inc. (NYSE:ORC) in the second quarter and eight hedge funds held stakes in the company in the first quarter. The total stake values for each quarter were $17.2 million and $19.8 million respectively.
See also 15 Biggest Water Companies In The World and 14 Best Low Risk Stocks To Buy Now.
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Disclosure: None. 11 Cheap High Dividend Stocks to Buy Right Now is originally published on Insider Monkey.
