In this article, we discuss the 5 dividend stocks with over 10% yield. If you want to read our detailed analysis of these stocks, go directly to the 10 Dividend Stocks With Over 10% Yield.
5. Annaly Capital Management, Inc. (NYSE:NLY)
Number of Hedge Fund Holders: 19
Forward Dividend Yield: 10.35%
Annaly Capital Management, Inc. (NYSE:NLY) operates as a diversified capital manager and is based in New York. The company beat market estimates on earnings per share by $0.01 in the third quarter. The firm grew the portfolio it owns by around $3 billion between June and September. David Finkelstein, the CEO of the firm, said during the earnings call that the firm grew the portfolio by redeploying proceeds from commercial real estate ventures.
Annaly Capital Management, Inc. (NYSE:NLY) stock has pulled back in recent weeks on the back of uncertainty around the rise in interest rates. Piper Sandler analyst Kevin Barker has a Neutral rating on the stock with a price target of $8.50.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Annaly Capital Management, Inc. (NYSE:NLY) with 4.2 million shares worth more than $37 million.
4. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 21
Forward Dividend Yield: 11.03%
Rio Tinto Group (NYSE:RIO) operates as a diversified metals and mining company. The firm is one of many mining stocks that have pledged to improve sustainable practices in the business. The company recently announced that it would be spending $7.5 billion on different projects through 2030 as part of a plan to decarbonize assets. The plan also envisions a 50% reduction in operational emissions during the period.
Rio Tinto Group (NYSE:RIO) stock has fallen in the past few days as China halts the production of steel and iron ore prices jump to new lows. Slowing demand for the metal has also played a part in the Chinese decision to halt production, reports suggest.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Rio Tinto Group (NYSE:RIO) with 12.9 million shares worth more than $1 billion.
3. BHP Group (NYSE:BHP)
Number of Hedge Fund Holders: 24
Forward Dividend Yield: 11.21%
BHP Group (NYSE:BHP) also operates as a mining firm. It is also pursuing a new climate change plan, approved by shareholders in mid-October, with a goal of net zero emissions for suppliers and shippers associated with the firm by 2050. Deutsche Bank analyst Liam Fitzpatrick recently named the stock among a list of short-term investment ideas, noting the rally in energy and coal prices as growth drivers for the firm.
There are reports that BHP Group (NYSE:BHP) is planning to invest in a copper project in Congo. The company has typically stayed away from partnerships in risky areas, instead preferring to operate in developed countries.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in BHP Group (NYSE:BHP) with 8 million shares worth more than $594 million.
In its Q1 2021 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and BHP Group (NYSE:BHP) was one of them. Here is what the fund said:
“Our purchase of Australian mining company BHP is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”
2. Vale S.A. (NYSE:VALE)
Number of Hedge Fund Holders: 27
Forward Dividend Yield: 22.43%
Vale S.A. (NYSE:VALE) produces and sells iron ore that is used to make steel products. It also has interests in the mining of other metals. The company is one of the biggest mining firms in the world with a market capitalization of more than $63 billion. It posted earnings for the third quarter in late October, reporting a revenue of $12.6 billion, up more than 17% compared to the revenue over the same period last year.
Vale S.A. (NYSE:VALE) has plans to exit the coal industry and has invited bids for the coal business. The exit and sale are part of a plan to achieve certain environmental goals ahead of stated targets.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Vale S.A. (NYSE:VALE) with 43 million shares worth more than $998 million.
1. Two Harbors Investment Corp. (NYSE:TWO)
Number of Hedge Fund Holders: 30
Forward Dividend Yield: 10.63%
Two Harbors Investment Corp. (NYSE:TWO) invests in residential mortgage-backed securities. The company recently priced a $30 million stock offering. The proceeds from the offering will be directed towards the purchase of target assets. The firm also has a solid dividend history and recently declared a quarterly dividend of $0.17 per share, in line with previous. The stock stands to benefit as rents surge across the US.
Two Harbors Investment Corp. (NYSE:TWO) has a market cap of $2 billion. The short interest on the stock is high at around 5% and the 52-week price range of the share lies between $5.28 and $8.15. It is presently trading at $6.37 per share.
At the end of the second quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $160 million in Two Harbors Investment Corp. (NYSE:TWO), down from 32 in the preceding quarter worth $200 million.
You can also take a peek at 15 Best High Volume Stocks to Buy Now and 10 Best Up and Coming Stocks to Invest In.
