In this article, we discuss 12 very high-yield dividend stocks to buy now. You can skip our detailed analysis of high-dividend stocks and their performance, and go directly to read 5 Very High-Yield Dividend Stocks To Buy Now.
The soaring inflation and consistent interest rates hike have analysts worried about a full-blown recession in the next few months. According to Bankrate’s third-quarter survey, 65% of economists believe that the US economy could contract within the next 12 to 18 months. The estimates have grown significantly since the first quarter when 33% of the candidates surveyed expected a recession. This uncertain market situation has pushed investors toward high-yield dividend securities.
High-yield dividend stocks have shown strong performance over other asset classes during previous inflationary periods. According to a report by Franklin Templeton Investments, an American multinational capital markets company, the ICE BofA US High Yield Index outperformed the broader market by 9 percentage points during and after the early 1990s and by 13 percentage points in the early 2000s. The report also mentioned that high-yield stocks remain resilient during periods of economic downturns, whereas earnings tend to decline during a recession. Another report by JPMorgan mentioned that earnings-per-share suffered a harsh decline during recessionary periods when dividends remained stable.
According to analysts, dividend stocks with healthy yields can pull investors out of the gloomy market and provide profits on their investments. Dividend stocks like The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG) are grabbing attention this year because these companies have raised their payouts for decades and generated stable income for investors.
However, we will discuss very high-yield dividend stocks in this article.
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Our Methodology:
The stocks mentioned below pay dividends to shareholders and have yields above 13%, as of December 5. The stocks are ranked according to their dividend yields.
Very High-Yield Dividend Stocks To Buy Now
12. AG Mortgage Investment Trust, Inc. (NYSE:MITT)
Dividend Yield as of December 5: 13.77%
AG Mortgage Investment Trust, Inc. (NYSE:MITT) is an American residential mortgage real estate investment trust that invests in a risk-adjusted portfolio of residential mortgage-related assets. In Q3 2022, the company reported a total interest income of $15.49 million, which showed a 24.6% growth from the same period last year. It had $77.6 million available in cash and $103.8 million in total liquidity. During the quarter, the company paid $4.65 million in dividends, which makes it one of the best dividend stocks on our list.
AG Mortgage Investment Trust, Inc. (NYSE:MITT) currently pays a quarterly dividend of $0.21 per share and has a dividend yield of 13.77%, as of December 5. The company can be added to diversified dividend portfolios alongside famous dividend stocks The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG).
At the end of Q3 2022, 9 hedge funds tracked by Insider Monkey owned stakes in AG Mortgage Investment Trust, Inc. (NYSE:MITT), up from 7 in the previous quarter. These stakes are collectively valued at $15.6 million. With 2.3 million shares, Beach Point Capital Management was the company’s leading stakeholder.
11. New York Mortgage Trust, Inc. (NASDAQ:NYMT)
Dividend Yield as of December 5: 14.11%
New York Mortgage Trust, Inc. (NASDAQ:NYMT) is a New York-based real estate investment trust that delivers stable distributions over diverse economic conditions. B. Riley maintained a Buy rating on the stock with a $5 price target in October, appreciating the company’s solid results. The firm presented a positive outlook on fixed-income markets.
In the third quarter of 2022, New York Mortgage Trust, Inc. (NASDAQ:NYMT) reported a total investment income of $14.22 million. The company ended the quarter with nearly $460 million in cash and cash equivalents and its total assets amounted to $6.7 billion.
New York Mortgage Trust, Inc. (NASDAQ:NYMT) currently pays a quarterly dividend of $0.10 per share and has a dividend yield of 14.11%, as of December 5.
As of the close of Q3 2022, 8 hedge funds tracked by Insider Monkey owned stakes in New York Mortgage Trust, Inc. (NASDAQ:NYMT), compared with 9 in the previous quarter. The collective value of these stakes is over $23.8 million.
10. Eagle Bulk Shipping Inc. (NASDAQ:EGLE)
Dividend Yield as of December 5: 14.32%
Eagle Bulk Shipping Inc. (NASDAQ:EGLE) is an American integrated shipowner operator that is engaged in the global transportation of dry bulk commodities. The company currently pays a quarterly dividend of $1.80 per share and has a dividend yield of 14.32%, as of December 5.
In Q3 2022, Eagle Bulk Shipping Inc. (NASDAQ:EGLE) reported revenue of $185.3 million, which showed a 1% growth from the same period last year. In the first nine months of the year, the company’s operating cash flow amounted to $242.5 million and had $197.6 million in cash and cash equivalents. Moreover, it also paid $81.6 million in dividends to shareholders, which places it as one of the best dividend stocks on our list.
In September, Stifel initiated its coverage on Eagle Bulk Shipping Inc. (NASDAQ:EGLE) with a Buy rating and a $62 price target. The firm mentioned that dry bulk shipping markets have enjoyed a strong recovery after the pandemic.
At the end of Q3 2022, 16 hedge funds in Insider Monkey’s database owned stakes in Eagle Bulk Shipping Inc. (NASDAQ:EGLE), compared with 18 a quarter earlier. These stakes are collectively valued at $216.1 million. Oaktree Capital Management was the company’s leading stakeholder in Q3.
9. Granite Point Mortgage Trust Inc. (NYSE:GPMT)
Dividend Yield as of December 5: 15.22%
Granite Point Mortgage Trust Inc. (NYSE:GPMT) is a real estate credit company that focuses on investing and managing senior floating-rate commercial mortgage loans. In Q3 2022, the company reported an EPS of $0.17 and its revenue came in at $18.29 million. The company had $165 million in cash at the end of the quarter and $3.7 billion in total assets. It paid over $17 million in dividends in the first nine months, which makes it one of the best dividend stocks.
Granite Point Mortgage Trust Inc. (NYSE:GPMT) currently pays a per-share dividend of $0.25 every quarter and has a dividend yield of 15.22%, as of December 5.
As per Insider Monkey’s database, 12 hedge funds owned stakes in Granite Point Mortgage Trust Inc. (NYSE:GPMT) in Q3 2022, down from 13 in the previous quarter. These stakes have a consolidated value of $13.8 million.
8. MFA Financial, Inc. (NYSE:MFA)
Dividend Yield as of December 5: 16.13%
MFA Financial, Inc. (NYSE:MFA) is a New York-based real estate investment trust company that invests in residential mortgage assets. In November, RBC Capital raised its price target on the stock to $11 with a Sector Perform rating on the shares, appreciating the company’s management. The firm also highlighted the company’s improving balance sheet.
In the third quarter of 2022, MFA Financial, Inc. (NYSE:MFA) reported a net interest income of $52.29 million. The company ended the quarter with unrestricted cash of $434 million, which represented 20% of its equity. It had over $434 million in cash and cash equivalents, up from $304.7 million during the same period last year.
MFA Financial, Inc. (NYSE:MFA) pays a quarterly dividend of $0.44 per share and has a dividend yield of 16.13%, as of December 5. The company has raised its dividends twice after canceling its payouts in 2020 due to the pandemic.
MFA Financial, Inc. (NYSE:MFA) was a popular buy among hedge funds in Q3 2022 as 19 funds in Insider Monkey’s database owned stakes in the company, compared with 15 in the previous quarter. These stakes are collectively valued at $98.2 million. Balyasny Asset Management was the company’s leading stakeholder in Q3.
7. Annaly Capital Management, Inc. (NYSE:NLY)
Dividend Yield as of December 5: 16.45%
Annaly Capital Management, Inc. (NYSE:NLY) is one of America’s largest real estate investment trusts that invests in financial, residential, and commercial assets. In Q3 2022, the company posted an EPS of $1.06, which beat Street estimates. Its revenue for the quarter came in at $278 million. The company’s total assets for the quarter stood at $86.2 billion, up from $82.3 billion in the previous quarter.
On September 8, Annaly Capital Management, Inc. (NYSE:NLY) declared a quarterly dividend of $0.88 per share and also approved a 1-for-4 reverse stock split. The stock’s dividend yield on December 5 came in at 16.45%.
In October, Barclays upgraded Annaly Capital Management, Inc. (NYSE:NLY) to Overweight, following the company’s third-quarter earnings. The firm mentioned that the company currently offers attractive investment opportunities for investors.
At the end of Q3 2022, 21 hedge funds tracked by Insider Monkey reported owning stakes in Annaly Capital Management, Inc. (NYSE:NLY), compared with 24 in the previous quarter. These stakes are worth over $320 million collectively.
6. Cherry Hill Mortgage Investment Corporation (NYSE:CHMI)
Dividend Yield as of December 5: 18.34%
Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) is a New Jersey-based real estate investment trust company that acquires residential mortgage assets in the US. In October, B. Riley maintained a Buy rating on the stock with a $7 price target.
Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) currently offers a quarterly dividend of $0.27 per share for a dividend yield of 18.34%, as of December 5. The company can be a good option for dividend portfolios due to its yield alongside The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG).
As of the close of Q3 2022, 4 hedge funds in Insider Monkey’s database owned stakes in Cherry Hill Mortgage Investment Corporation (NYSE:CHMI), the same as in the previous quarter. These stakes have a total value of over $5.1 million. Among these hedge funds, Renaissance Technologies owned the largest stake in the company.
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Disclosure. None. 12 Very High-Yield Dividend Stocks To Buy Now is originally published on Insider Monkey.