25 High Dividend Stocks Being Targeted By Short Sellers

7. Sirius XM Holdings Inc. (NASDAQ:SIRI)

Short % of Float as of April 15: 13.59%

Dividend Yield as of April 28: 5.00%

Sirius XM Holdings Inc. (NASDAQ:SIRI) ranks seventh on our list of the dividend stocks targeted by short sellers. The American multinational broadcasting corporation is a leading provider of satellite radio and online audio entertainment services. Satellite radio initially transformed the driving experience by offering nationwide, ad-free content and exclusive deals with automakers, making it a valuable add-on for car sales. However, rising royalty costs and the rapid rise of smartphone streaming apps began to undermine its growth. These pressures, combined with the need for scale, led regulators to approve a rare monopoly when Sirius and XM merged during the financial crisis. Though it took time and financial support to finalize, the merger eventually produced a profitable, though slower-growing, business.

In the past 12 months, Sirius XM Holdings Inc. (NASDAQ:SIRI) has declined by over 31%. In the fourth quarter of 2024, the company reported revenue of $2.2 billion, down 3% from the same period last year. However, the revenue surpassed analysts’ estimates by $17.98 million. For the year, the number of self-pay subscribers dropped by 296,000.

In 2024, Sirius XM Holdings Inc. (NASDAQ:SIRI) produced $1.015 billion in free cash flow, which was about $167 million lower than the amount reported the previous year. Over time, the company has relied on its strong cash flow to buy back shares and increase returns to shareholders, while taking a more cautious approach toward adding new debt. It has raised its payouts for seven consecutive years and currently offers a quarterly dividend of $0.27 per share. As of April 28, the stock has a dividend yield of 5%.