In this article, we discuss 12 dividend giants with the lowest short interest. You can skip our detailed analysis of dividend stocks and their performance in the past, and go directly to read 5 Dividend Giants with Lowest Short Interest.
Short interest refers to the total number of shares of a particular stock that investors have borrowed and sold short, betting that the stock’s price will decline. Low short interest means that there are relatively few shares of a stock that have been sold short. This could be a sign that investors are generally optimistic about the stock’s prospects and are not expecting its price to drop significantly in the near term. Short selling can be a viable strategy for experienced investors who are willing to take on a higher level of risk. It is useful for investors who believe that a particular stock is overvalued and are willing to bet on its price going down.
In 2022, short sellers won big as shorted stocks returned 30.8%, compared with a 19.4% decline in the S&P 500, according to a report by financial data marketplace, S3 Partners. The report also mentioned that short sellers in the US recorded $300 billion in market-to-market profits on the average short interest of $973 billion. Another data by Goldman Sachs showed that the 50 most shorted stocks in the Russell 3000 returned 15% this year through January 26, compared with a 6% return of the broader market.
Insider Monkey’s premium newsletters also use short selling to generate positive returns as well as to weed out risky long candidates. In this article we are also going to utilize short interest to weed out risky high dividend stocks. Usually stocks with very high dividend yields have high dividend yields because their stock prices declined by large amounts and there are valid reasons for those declines. These stocks usually have very high open short interest. Some of these high dividend stocks may continue their declines and be forced to cut their dividends to “save” their companies. Intel Corporation (INTC) is a good example. Intel was offering $0.365 in quarterly dividend and its dividend yield increased to nearly 6% as its stock price declined from $52 to $25 over the past year. Two weeks ago, Intel announced that it cut its dividend from $0.365 to $0.125. Unfortunately, there weren’t a lot of hedge funds shorting Intel and, even though its open short interest is 2.5 times above Honeywell’s – a company with similar market cap -, our quantitative screen of excluding high short interest stocks approach wouldn’t have been successful in this case because Intel’s short interest is 1.83% (see 10 biggest dividend cuts in 2022)
The fluctuating market conditions have turned investors’ attention toward dividend companies as these stocks can generate stable and regular income for shareholders. Moreover, dividend stocks have contributed significantly to the market’s overall return. According to a report by Fidelity, dividends have represented 40% of the stock market’s returns since 1930 and 54% during decades when inflation was at its peak. Some of the most popular dividend stocks that are grabbing investors’ attention include Exxon Mobil Corporation (NYSE:XOM), PepsiCo, Inc. (NASDAQ:PEP), and The Procter & Gamble Company (NYSE:PG).
In view of the above discussion, we will discuss dividend giants with the lowest short interest in this article.
Photo by Chris Liverani on Unsplash
Our Methodology:
For this list, we used the Finviz stock screener to identify dividend stocks with a market cap of at least $1 billion and dividend yields above 5%, as of March 7. From that list, we shortlisted stocks with less than 6% of their float sold short, as recorded on February 14, which was taken from Yahoo Finance. The stocks are ranked in descending order of their short interest rate.
12 Dividend Giants with Lowest Short Interest
12. EPR Properties (NYSE:EPR)
Short % of Float as of February 14: 5.74%
Dividend Yield as of March 7: 8.13%
EPR Properties (NYSE:EPR) is a Missouri-based real estate investment trust company that invests mainly in entertainment properties. In the fourth quarter, the company posted revenue of $178.7 million, up 15.4% from the same period last year. At the end of December 2022, the company had roughly $108 million available in cash and cash equivalents.
As of February 14, EPR Properties (NYSE:EPR) has 5.74% of its float sold short, which makes it one of the dividend giants with the lowest short interest. The company pays a monthly dividend of $0.275 per share and has a dividend yield of 8.13%, as of March 7. It can be added to dividend portfolios alongside popular dividend stocks like Exxon Mobil Corporation (NYSE:XOM), PepsiCo, Inc. (NASDAQ:PEP), and The Procter & Gamble Company (NYSE:PG), due to its monthly payouts.
In January, Raymond James added EPR Properties (NYSE:EPR) to its ‘Analyst Current Favorite’ list and maintained a Strong Buy rating on the stock with a $45 price target.
At the end of Q4 2022, 23 hedge funds tracked by Insider Monkey reported owning stakes in EPR Properties (NYSE:EPR), compared with 25 in the previous quarter. The collective value of these stakes is over $208.8 million. Ken Griffin’s Citadel Investment Group was the company’s leading stakeholder in Q4.
11. Physicians Realty Trust (NYSE:DOC)
Short % of Float as of February 14: 5.42%
Dividend Yield as of March 7: 6.23%
Physicians Realty Trust (NYSE:DOC) is an American real estate investment trust company that invests in healthcare properties. It is one of the dividend giants on our list with 5.42% of its float sold short, as of February 14.
On December 22, Physicians Realty Trust (NYSE:DOC) declared a quarterly dividend of $0.23 per share, which fell in line with its previous dividend. The company has been making uninterrupted dividend payments for the past 38 quarters. The stock’s dividend yield on March 7 came in at 6.23%.
In the fourth quarter of 2022, Physicians Realty Trust (NYSE:DOC) reported revenue of $132.5 million, which saw a 14.2% growth from the same period last year. At the end of December 2022, the company had over $7.7 million available in cash and cash equivalents and its total assets amounted to over $5 billion.
In December, KeyBanc upgraded Physicians Realty Trust (NYSE:DOC) to Overweight with a $17 price target, highlighting the sector’s improving cyclical growth.
As of the close of Q4 2022, 15 hedge funds tracked by Insider Monkey reported having investments in Physicians Realty Trust (NYSE:DOC), worth over $104 million collectively.
ClearBridge Investments mentioned Physicians Realty Trust (NYSE:DOC) in its Q4 2022 investor letter. Here is what the firm has to say:
“Elsewhere in real estate, we exited our position in health care REIT Physicians Realty Trust (NYSE:DOC). With interest rates rising and the capitalization rates for medical office buildings remaining flat, we determined that the margin between the company’s cost of capital and returns from its properties has narrowed to an unattractive level and elected to exit the position and redeploy capital into our higher-conviction holdings.”
10. Golden Ocean Group Limited (NASDAQ:GOGL)
Short % of Float as of February 14: 4.53%
Dividend Yield as of March 7: 7.95%
Golden Ocean Group Limited (NASDAQ:GOGL) is a dry-bulk shipping company that owns one of the largest dry-bulk fleets in the world. The company is based in Bermuda. It currently offers a quarterly dividend of $0.20 per share for a dividend yield of 7.95%, as of March 7.
Golden Ocean Group Limited (NASDAQ:GOGL), one of the dividend giants with the lowest short interest, reported an earnings beat in Q4 2022. The company’s revenue for the quarter came in at roughly $250 million, surpassing analysts’ estimates by $96.8 million. As of February 14, the company’s short interest stands at 4.53%.
In January, Fearnley upgraded Golden Ocean Group Limited (NASDAQ:GOGL) to Buy and also lifted its price target on the stock to $11.50. The firm appreciated the company’s assets and dividend yield.
At the end of Q4 2022, 15 elite funds in Insider Monkey’s database owned stakes in Golden Ocean Group Limited (NASDAQ:GOGL), down from 18 in the previous quarter. These stakes have a consolidated value of over $35.5 million.
9. Chimera Investment Corporation (NYSE:CIM)
Short % of Float as of February 14: 3.78%
Dividend Yield as of March 7: 14.81%
Chimera Investment Corporation (NYSE:CIM) is an American real estate investment trust company that deals in residential mortgage loans. With just 3.78% of its float sold short as of February 14, the company is one of the dividend giants with the lowest short interest.
At the end of December 2022, Chimera Investment Corporation (NYSE:CIM) had over $264.6 million available in cash and cash equivalents, and its total assets stood at over $13.4 billion. The company’s revenue for Q4 2022, came in at over $80 million, which fell by 48% from the same period last year.
On February 2, Chimera Investment Corporation (NYSE:CIM) declared a quarterly dividend of $0.23 per share, which remained consistent with its previous dividend. The stock has a dividend yield of 14.81%, as of March 7.
At the end of December 2022, 15 hedge funds in Insider Monkey’s database reported owning stakes in Chimera Investment Corporation (NYSE:CIM), up from 14 a quarter earlier. These stakes have a consolidated value of over $8.4 million. Ken Griffin and David Costen Haley were some of the company’s leading stakeholders in Q4.
8. Global Partners LP (NYSE:GLP)
Short % of Float as of February 14: 2.60%
Dividend Yield as of March 7: 7.34%
Global Partners LP (NYSE:GLP) is an American energy company and a master limited partnership that specializes in the importing of petroleum products. In the fourth quarter of 2022, the company posted revenue of $4.4 billion, which showed a 7.6% growth from the same period last year. Its distributable cash flow for the quarter came in at $57.3 million, compared with $30.5 million in the prior-year period.
As of February 14, Global Partners LP (NYSE:GLP) has 2.60% of its float sold short, which makes it one of the dividend giants with the lowest short interest. On January 25, the company declared a quarterly dividend of $0.635 per share, raising it by 1.6%. The company also declared a special dividend of $0.9375 per share. The stock has a dividend yield of 7.34%, as of March 7.
At the end of Q4 2022, 3 hedge funds tracked by Insider Monkey reported owning stakes in Global Partners LP (NYSE:GLP), the same as in the previous quarter. These stakes have a total value of roughly $3 million.
7. Blackstone Inc. (NYSE:BX)
Short % of Float as of February 14: 2.54%
Dividend Yield as of March 7: 6.48%
Blackstone Inc. (NYSE:BX) is another dividend giant on our list with the lowest short interest. The New York-based company specializes in private investment management. As of February 14, the company has 2.54% of its float sold short.
On January 26, Blackstone Inc. (NYSE:BX) declared a 1% hike in its quarterly dividend to $0.91 per share. The stock has a dividend yield of 6.48%, as recorded on March 7.
In January, BMO Capital raised its price target on Blackstone Inc. (NYSE:BX) to $92 with a Market Perform rating on the shares, appreciating the company’s Q4 earnings. The firm also expects the company to improve further this year.
At the end of December 2022, 51 hedge funds tracked by Insider Monkey held stakes in Blackstone Inc. (NYSE:BX), compared with 61 in the previous quarter. The collective value of these stakes is over $1.13 billion.
Artisan Partners mentioned Blackstone Inc. (NYSE:BX) in its Q4 2022 investor letter. Here is what the firm has to say:
“Another laggard in Q4 was investment manager Blackstone Inc. (NYSE:BX). Shares came under pressure along with those of other alternative asset managers due to price declines across asset markets. Blackstone has been met with redemptions in its private real estate fund BREIT (Blackstone Real Estate Income Trust), one of the company’s strong growth drivers in the attractive high net worth channel. Redemptions have picked up due to concerns about the real estate market due to higher interest rates, and because BREIT has been a strong performing product, investors are selling their winners to gain liquidity in an environment where their other assets may have lost value. In early January 2023, it was announced that the University of California is putting $4 billion into BREIT with the same fees as other shareholders but with a commitment to hold shares for 6 years. This announcement may help to allay concerns about BREIT’s stability in the face of redemptions. We still view the business as a proven long-term compounder of value, driven by a virtuous cycle of strong investment results leading to fundraising success. Blackstone remains a smaller position in the portfolio.”
6. Devon Energy Corporation (NYSE:DVN)
Short % of Float as of February 14: 2.04%
Dividend Yield as of March 7: 7.86%
Devon Energy Corporation (NYSE:DVN) is an Oklahoma-based energy company that specializes in the exploration of hydrocarbons. On February 14, the company announced an 11% hike in its quarterly dividend to $0.20 per share. As of March 7, the stock has a dividend yield of 7.86%. The company is among the dividend giants with the lowest short interest.
Other popular dividend stocks that are grabbing investors’ attention include Exxon Mobil Corporation (NYSE:XOM), PepsiCo, Inc. (NASDAQ:PEP), and The Procter & Gamble Company (NYSE:PG).
In the fourth quarter of 2022, Devon Energy Corporation (NYSE:DVN) reported revenue of $4.3 billion, which showed a 0.7% growth from the same period last year. For FY23, the company expects its capital investment between $3.6 billion to $3.8 billion. As of February 14, 2.04% of the company’s total float has been shorted.
Piper Sandler appreciated the company’s recent quarterly earnings and its guidance for the next fiscal year. Given this, the firm maintained an Overweight rating on Devon Energy Corporation (NYSE:DVN) in February, with an $89 price target.
The number of hedge funds tracked by Insider Monkey owning stakes in Devon Energy Corporation (NYSE:DVN) grew to 55 in Q4 2022, from 51 in the previous quarter. The collective value of these stakes is over $823.5 million.
GoodHaven Capital Management mentioned Devon Energy Corporation (NYSE:DVN) in its Q2 2022 investor letter. Here is what the firm has to say:
“Our biggest dollar gainer within this period was Devon Energy Corporation (NYSE:DVN), a position which emanated from a takeover in early 2021 of our long time holding WPX Energy. We are sitting on a material (unrealized) gain from our cost and are now receiving material dividends thanks to Devon’s thoughtful fixed/variable dividend policy. Energy is now a hot sector for investors but we have had a material exposure for a long time. We remember a bit too well $40 oil, NEGATIVELY PRICED front-month oil contract, and what it’s like to own a company with leverage and negative free cash flow during such periods. Our desire to have our biggest portfolio exposures be high return, growing, reasonably predictable and moderately levered companies lead us to reduce our Devon exposure in the past. When the recent facts and circumstances for the industry changed and appeared supportive of healthy oil prices, we decided to maintain a sizable holding and more recently added to the position. At Devon’s Q1 dividend rate, which is mostly variable in nature, the shares now yield approximately 10% and our yield on our average cost is materially higher. In addition, we maintain additional energy exposure through our long-term (and successful) holding in Hess Midstream and less directly through TerraVest and Berkshire Hathaway’s energy investments.”
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Disclosure. None. 12 Dividend Giants with Lowest Short Interest is originally published on Insider Monkey.