25 High Dividend Stocks Being Targeted By Short Sellers

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1. Jack in the Box Inc. (NASDAQ:JACK)

Short % of Float as of April 15: 32.33%

Dividend Yield as of April 28: 6.95%

Jack in the Box Inc. (NASDAQ:JACK) is an American fast-food chain company, headquartered in California. The company reported a 3.7% drop in total revenue for the first quarter of fiscal 2025, bringing in $469.4 million. This decline was mainly attributed to the refranchising of its Del Taco brand. Net income for the quarter stood at $33.7 million. Same-store sales saw a slight overall rise of 0.4%, with franchise locations increasing by 0.5%, while company-owned stores dipped by 0.4%.

Despite the mixed financial results, Jack in the Box Inc. (NASDAQ:JACK) demonstrated a strong cash position, generating more than $105.6 million in operating cash flow—an impressive turnaround from the negative $22,675 recorded during the same period last year. The company has consistently paid dividends since 2014. Its quarterly dividend comes in at $0.44 per share and has a dividend yield of 6.95%, as of April 28.

At the end of Q4 2024, 17 hedge funds tracked by Insider Monkey held stakes in Jack in the Box Inc. (NASDAQ:JACK), up from 16 in the previous quarter. The collective value of these stakes is over $75.3 million. Among these hedge funds, Citadel Investment Group was the company’s leading stakeholder in Q4.

Overall, Jack in the Box Inc. (NASDAQ:JACK) ranks first on our list of the dividend stocks targeted by short sellers. While we acknowledge the potential of JACK as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than JACK but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

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