In this article, we will be taking a look at 5 dividend stocks that have doubled their payouts. To read our detailed analysis of dividend investing, you can go directly to see the 10 Dividend Stocks That Have Doubled Their Payouts.
5. Morgan Stanley (NYSE:MS)
Number of Hedge Fund Holders: 65
Dividend Yield: 2.9%
Morgan Stanley (NYSE:MS) is among the most renowned financial and investment banking and brokerage companies out there. The company offers financial products and services to a varied consumer-base, including corporations, governments, financial institutions, and individuals. It raised its dividend by 100% this year, and as of this November, it had a yield of 2.9%.
Citigroup analyst Keith Horowitz holds a Neutral rating on shares of Morgan Stanley (NYSE:MS) as of this October. The analyst also raised his price target on the stock to $105.
In the fiscal third quarter of 2021, Morgan Stanley (NYSE:MS) had an EPS of $2.04, beating estimates by $0.36. The company’s revenue was $14.75 billion, up 26.56% year over year and beating estimates by $799.47 million as well.
Out of 867, 65 hedge funds held stakes in Morgan Stanley (NYSE:MS) in the third quarter, worth $4.9 billion. In the second quarter, 69 hedge funds held stakes in the company worth $5.3 billion.
4. Genco Shipping & Trading Limited (NYSE:GNK)
Number of Hedge Fund Holders: 17
Dividend Yield: 3.9%
Genco Shipping & Trading Limited (NYSE:GNK) is an industrials company that engages in the ocean transportation of dry bulk cargoes across the globe. The company owns and operates dry bulk carrier vessels and transports iron ore, coal, grains, steel products, and other dry-bulk cargoes. This year, the company has hiked its dividend thrice to bring in a cumulative increase of 650% in 2021.
This November, H.C. Wainwright analyst Magnus Fyhr reiterated a Buy rating on Genco Shipping & Trading Limited (NYSE:GNK) shares.
According to Insider Monkey’s hedge fund data, 17 hedge funds held stakes in Genco Shipping & Trading Limited (NYSE:GNK) in the third quarter worth $175 million. In the second quarter, 19 hedge funds held stakes in the company worth $175 million.
3. Suncor Energy Inc. (NYSE:SU)
Number of Hedge Fund Holders: 32
Dividend Yield: 5.4%
Suncor Energy Inc. (NYSE:SU) is an integrated energy company focusing on developing petroleum resource basins in Canada’s Athabasca oil sands. It also deals with crude oil in Canada and internationally. The company doubled its dividend this year, using its increased cash flow in 2021 while also cutting $3 billion worth of debt. It is among the best dividend stocks that have doubled their payouts.
Scotiabank’s Jason Bouvier reiterated an Outperform rating on shares of Suncor Energy Inc. (NYSE:SU) this November.
Insider Monkey’s data shows 32 hedge funds long in Suncor Energy Inc. (NYSE:SU) in the third quarter, with stakes worth $1.08 billion. In the second quarter again, 32 hedge funds were long in the stock, with stakes worth $1.1 billion.
2. Alico, Inc. (NASDAQ:ALCO)
Number of Hedge Fund Holders: 10
Dividend Yield: 5.6%
Alico, Inc. (NASDAQ:ALCO) is an agricultural products company based in the US. It operates through its Alico Citrus and Land Management and Other Operations segments. It hiked its dividend this year by 178%, making it one of the top dividend stocks that have doubled their payout.
In the third quarter of 2021, Alico, Inc. (NASDAQ:ALCO) had an EPS of $3.61, beating estimates by $3.32. Its revenue was $34.89 million, beating estimates by $5.49 million.
Our data shows that 10 hedge funds held stakes in Alico, Inc. (NASDAQ:ALCO) in the third quarter, worth $12.2 million. Comparatively, in the second quarter, seven hedge funds held stakes in the company worth $11.1 million.
Third Avenue Management, an investment management firm, mentioned Alico, Inc. (NASDAQ:ALCO) in its first-quarter 2021 investor letter. Here’s what they said:
“We also exited the Fund’s investment in long-time holding Alico, one of the largest citrus producers in the US. While Alico’s management has made good progress in streamlining and bettering the company, competition from foreign producers has weighed on industry pricing and we believe this is likely to remain a constraint on the industry for the foreseeable future.”
1. Star Bulk Carriers Corp. (NASDAQ:SBLK)
Number of Hedge Fund Holders: 21
Dividend Yield: 13.7%
Star Bulk Carriers Corp. (NASDAQ:SBLK) is a shipping company that works to transport dry bulk cargoes across the globe. It hiked its dividend by 317% this November.
This September, H.C. Wainwright analyst Magnus Fyhr initiated coverage of Star Bulk Carriers Corp. (NASDAQ:SBLK) shares with a Buy rating.
The company’s EPS in the fiscal third quarter of 2021 was $2.19, beating estimates by $0.05. The revenue was $354.84 million, up 126.61% year over year and beating estimates by $14.59 million.
In the third quarter, 21 hedge funds held stakes in Star Bulk Carriers Corp. (NASDAQ:SBLK), worth $846 million.
Massif Capital, an investment management firm, mentioned Star Bulk Carriers Corp. (NASDAQ:SBLK) in its third-quarter 2021 investor letter. Here’s what they said:
“We initiated one long position, one short position and exited one position during the third quarter. Our new long position was in Star Bulk Carriers (SBLK), a pure-play dry bulk operator with roughly 120 controlled vessels and 14 million tons of combined cargo capacity globally.
SBLK has one of the better management teams in the maritime shipping industry and the lowest cost structure among all dry bulk names. After announcing their new dividend policy in May, SBLK now has one of the best payout structures in shipping. The firm has paid out $0.3 and $0.7 per share in dividends for the first and second quarters of 2021. SBLK will most likely announce a dividend for the third quarter somewhere in the $1.15-$1.25 per
share range, depending on movement in net working capital.We believe the best way to look at this business is through cash generation potential and how much is returned to investors. The current equity valuation does not reflect current rates for shipping (earnings), partly because of the velocity of the move in rates and because shipping cycles turn, and it’s not clear whether this is a local top or the early innings of a multi-year cycle. Our belief is the latter. Part of our catalyst is the market re-rating the stock higher once the length of the increased earnings power becomes understood. It is a relatively strong catalyst in the sense that with a strong dividend policy, we can be patient for the market to underwrite this story as the cash is either returned to us via a high dividend yield if the market is either slow or chooses not to join our side of the trade.
Our estimates suggest a time-charter equivalent rate (net profit or loss of operating a vessel daily) of at least $30,000 for SBLK in Q4, with the firm earning a potential annual average of $26,000. Our base case is that this is a strong floor going into next year, with little need to articulate much more upside. If rates hold, which we expect them to do, we could see a 20+% annual dividend year next year for SBLK. If the market priced the equity such that the dividend yield was 8%, that implies a $62 stock. Today our base case target for the firm is $37 per share. This is likely conservative as we know that third-quarter rates are higher than the second quarter, and third-quarter dividends will most likely reflect that. We are cautious about diving too deep into the sensitivities to the upside with this position as we are arriving at some pretty remunerative torque using current contracted values and seemingly conservative forecasts…” (Click here to see the full text)
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