5 Cheap Dividend Stocks with High Yields

In this article, we discuss the 5 cheap dividend stocks with high yields. If you want to read our detailed analysis of the these dividend stocks, go directly to 10 Cheap Dividend Stocks with High Yields.

5. FS KKR Capital Corp. (NYSE:FSK)

Number of Hedge Fund Holders: 11

Dividend Yield: 11.17%

Share Price (as of March 7): $22.56

FS KKR Capital Corp. (NYSE:FSK) is a business development company which specializes in debt securities. It primarily invests in senior secured loans, as well as the subordinated debt of private middle market companies in the US. As of March 7, FS KKR Capital Corp. (NYSE:FSK) saw its share price rise 15.63% in the last 12 months, and 7.74% in the year to date.

FS KKR Capital Corp. (NYSE:FSK) posted a quarterly dividend of $0.63 per share on February 28, signaling a 1.6% increase from its previous dividend of $0.62, and payable to shareholders as of April 4. FS KKR Capital Corp. (NYSE:FSK) reported strong figures for its Q4 earnings. EPS was recorded at $0.75, outperforming estimates by $0.15. Quarterly revenue stood at $364 million, up $19.45 million as compared to analysts’ predictions.

On March 2, Wells Fargo analyst Finian O’Shea upgraded FS KKR Capital Corp. (NYSE:FSK) to an ‘Equal Weight’ rating from ‘Underweight’, and also upped the price target to $21.50 from $19.50. O’Shea sees a likely improvement in the company’s credit profile and relative stability in its net operating income.

Beach Point Capital Management was the top shareholder in FS KKR Capital Corp. (NYSE:FSK) at the end of the fourth quarter, with a stake comprising of more than 6 million shares worth roughly $127 million. In addition to Beach Point, 10 other hedge funds were long FS KKR Capital Corp. (NYSE:FSK) in Q4, with combined stakes worth $164 million.