5 Cheap Dividend Stocks with High Yields

2. Vale S.A. (NYSE:VALE)

Number of Hedge Fund Holders: 25

Dividend Yield: 13.00%

Share Price (as of March 7): $20.60

Vale S.A. (NYSE:VALE) is a Brazilian company which deals in the production of iron ore, pellets, manganese, and iron alloys for use in the steelmaking industry.

On March 2, Vale S.A. (NYSE:VALE) was upgraded to ‘Buy’ from ‘Hold’ by research firm HSBC, on the back of elevated metal prices. With Western nations refusing to import Russian mineral resources, Vale S.A. (NYSE:VALE) is set to enjoy another period of sustained growth. As of March 7, it gained 16.12% in the last 12 months, and 19.98% in the last month. Vale S.A. (NYSE:VALE) recorded earnings per share of $1.46 in the fourth quarter, outperforming estimates by $0.65.

Vale S.A. (NYSE:VALE) was recorded in the portfolio of 25 hedge funds in the fourth quarter, with aggregate positions of $1.71 billion. This is down from 27 hedge funds in Q3 2021, holding stakes worth $1.97 billion. Fisher Asset Management held almost 31 million shares in Vale S.A. (NYSE:VALE) in Q4, worth $434.3 million, making him the top shareholder in the Brazilian firm.

Miller Value Partners, an investment firm, discussed Vale S.A. (NYSE:VALE) in its investor letter for Q3 2021. It said:

“Vale (VALE) was the top detractor over the quarter, falling 32.6% in sympathy with iron ore’s 48% decline from record highs on China capacity curbs and growing fears of financial issues within the property sector. Vale reported Q2 EBITDA of $11.24Bn, slightly below consensus of $11.47Bn on higher than expected iron ore cash costs. Free cash flow of $6.5Bn (35% annualized yield) came in well ahead of expectations, driving $2.6Bn of stock buybacks and a 1H21 dividend of $7.6Bn, implying year-to-date (YTD) shareholder returns of roughly $13.8Bn (19% of the current market cap). Management maintained FY21 production guidance for iron ore of 315-335 Metric tons (Mt) and lowered year-end 2022 exit capacity to 370Mt (from 400Mt) due to Northern System licensing delays. Additionally, the company hosted their annual Investor Day, outlining new production initiatives aimed at becoming a key supplier to steelmakers in light of decarbonization goals.”