In this article, we discuss the 5 best high yield dividend stocks to buy in June. If you want to read our detailed analysis of these companies, go directly to the 10 Best High Yield Dividend Stocks to Buy in June.
5. Sunoco LP (NYSE: SUN)
Dividend Yield as of June 11: 8.86%
Number of Hedge Fund Holders: 2
Ranking 5th in our list of 10 best high yield dividend stocks to buy in June is Sunoco LP (NYSE:SUN). Sunoco LP is a global seller of motor fuels on a wholesale basis. One of the most significant acquisitions of Sunoco LP (NYSE:SUN) was convenience stores from Speedway LCC. The company purchased stores to convert them into wholesale distribution hubs estimated to produce around 180 million per year gallons of fuel.
Sunoco LP (NYSE:SUN) posted its adjusted EBITDA of $157 million in the first quarter of 2021, down from $209 million in the first quarter of 2020. SUN shares currently trade for $37.28 and have a P/E ratio of 7.51. The current dividend yield is 8.86%. The 52-week price range of Sunoco LP (NYSE:SUN) is $22.52-37.43. Shares of SUN jumped 56.42% over the last twelve months. On May 13, Wells Fargo maintained an Underweight rating on Sunoco and raised the price target to $33.
4. Antero Midstream Corporation (NYSE: AM)
Dividend Yield as of June 11: 8.74%
Number of Hedge Fund Holders: 17
Ranking 4th in our list of 10 best high yield dividend stocks to buy in June is Antero Midstream Corporation (NYSE:AM). The midstream energy company was founded in 2013. On June 9, JonesTrading downgraded Antero Midstream Corporation to Hold.
Antero Midstream Corporation (NYSE:AM) posted its adjusted EBITDA of $219 million in the first quarter of 2021, a 1% increase from $217 million in the first quarter of 2020. AM shares currently trade for $10.36 and have a P/E ratio of 14.19. The current dividend yield is 8.74%. The 52-week price range of Antero Midstream Corporation (NYSE:AM) is $4.77-10.57. Shares of AM jumped 101.2% over the last twelve months.
Bonhoeffer Capital Management mentioned Antero Midstream Corporation (NYSE:AM) in its Q4 2020 investor letter: Here is what the fund said:
“Public LBOs (32% of Portfolio; Quarterly Average Performance +25%)
This includes our broadcast TV franchises, leasing and roll-on/roll-off (RORO) shipping, and our natural gas pipeline firm. One trend in these levered firms is the increasing spread between bond yields and the firms’ free cash flow yield.
An example is Antero Midstream, whose FCF yield was 15% as of December 31, 2020, with a debt yield of 6% with the bond/equity FCF spread of 9%. This is a large spread given that Antero Midstream has completed its backbone infrastructure and gathering investment and capital expenditures should be small going forward. With natural gas prices rebounding, Antero Midstream cash flows become more secured as Antero Resources has more cash flow cushion in making payments to Antero Midstream. The recovery in natural gas prices is expected to continue as the economy opens up and low oil prices have shut down Permian oil wells that were generating almost-free associated natural gas. Antero Midstream’s FCF yield of 15% is also higher than similarly secured Antero subordinated debt with a yield of 7.8%.”
3. Annaly Capital Management, Inc. (NYSE: NLY)
Dividend Yield as of June 11: 9.22%
Number of Hedge Fund Holders: 15
Ranking 3rd in the 10 best high yield dividend stocks to buy in June is Annaly Capital Management, Inc. (NYSE:NLY). Annaly Capital Management, Inc. operates as one of the primary mortgage real estate investment trusts in the United States. Earlier this year, the company signed a $2.33 billion deal with Slate Asset Management. The contract states that all commercial real estate assets of NLY will be sold to Slate Asset Management, including some of its representatives. The transaction is targeted to complete in the third quarter of 2021.
Annaly Capital Management, Inc. (NYSE:NLY) posted its net interest income of $763 million in the first quarter of 2021, up from $527 million in the fourth quarter of 2020. Annaly Capital Management, Inc. (NYSE:NLY) currently trades for $9.51 and offers a dividend yield of 9.22%. The 52-week price range of Annaly Capital Management, Inc. (NYSE:NLY) is $6.26-9.64. Shares of NLY jumped 45% over the last twelve months.
2. MPLX LP (NYSE: MPLX)
Dividend Yield as of June 11: 9.28%
Number of Hedge Fund Holders: 8
Ranking 2nd in our list of 10 best high yield dividend stocks to buy in June is MPLX LP (NYSE:MPLX). The Ohio-based midstream energy company was formed in a partnership with Marathon Petroleum Corporation (NYSE:MPC), founded in 2012. The company began publicly trading in October of the same year. In 2019, the company purchased Andeavor Logistics LP. The acquisition upscaled the company’s assets and provided the company with an advantage in the midstream sector.
MPLX LP (NYSE:MPLX) posted its adjusted earnings of $1.4 billion in the first quarter of 2021, up from $1.3 billion in the first quarter of 2020. MPLX shares currently trade for $30.19 and have a P/E ratio of 12.07. The current dividend yield is 9.28%. The 52-week price range of MPLX LP (NYSE:MPLX) is $15.05-30.22. Shares of MPLX jumped 72% over the last twelve months. On May 27, Credit Suisse maintained an Outperform rating on MPLX LP and raised the price target to $34.
1. Icahn Enterprises L.P. (NASDAQ: IEP)
Dividend Yield as of June 11: 14.18%
Number of Hedge Fund Holders: 4
Topping the 10 best high yield dividend stocks to buy in June is Icahn Enterprises L.P. (NASDAQ:IEP). The New York-based diversified holding company funds in the energy, automotive, packaging, real estate, and home fashion industries. In 2020, Icahn Enterprises L.P. (NASDAQ:IEP) subsidiary Icahn Automotive acquired automotive assistance company Tecnicentros Mundial. The purchase granted the company a more stable framework to provide to clients’ growing demand in the Puerto Rico island.
Icahn Enterprises L.P. (NASDAQ:IEP) posted its net sales of $2.2 billion in the first quarter of 2021, a significant increase from $1.8 billion in the same period of 2020. IEP shares currently trade for $56.19. The current dividend yield is 14.18%. The 52-week price range of Icahn Enterprises L.P. (NASDAQ:IEP) is $56.15-56.86. Shares of EIP jumped 16.5% over the last twelve months.
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