In this article, we discuss 5 dividend stocks with over 10% yield. If you want our detailed analysis of these stocks, go directly to 10 Dividend Stocks with Over 10% Yield.
5. Vale S.A. (NYSE:VALE)
Number of Hedge Fund Holders: 25
Dividend Yield as of March 2: 13.67%
Vale S.A. (NYSE:VALE) produces and sells iron ore and iron ore pellets that are used as raw materials in steelmaking. The company is headquartered in Rio de Janeiro, Brazil. Exane BNP Paribas analyst Sylvain Brunet on February 9 upgraded Vale S.A. (NYSE:VALE) to Outperform from Neutral with a $20.50 price target.
On February 25, Vale S.A. (NYSE:VALE) approved the distribution of dividends to shareholders of $3.5 billion, coming in at $0.73 per share. The dividend is payable on March 16, to shareholders of record on March 10. Vale S.A. (NYSE:VALE)’s dividend yield on March 2 was 13.67%. The company reported its fourth quarter results on February 24, posting earnings per share of $1.46, exceeding estimates by $0.65.
Vale S.A. (NYSE:VALE) expects Russia’s invasion of Ukraine to increase the premium that steelmakers pay for iron ore pellets beginning in Q2, as the two countries together account for approximately 30% of the 120 million ton global market. The company also expects the Russian invasion will likely accelerate gains in the price of nickel, a market that was already characterized by low inventories.
In Q4 2021, 25 hedge funds were bullish on Vale S.A. (NYSE:VALE) according to Insider Monkey’s database, as compared to 27 funds in the prior quarter. Fisher Asset Management held the biggest stake in the company, with roughly 31 million shares worth $434.3 million.
Here is what Miller Value Partners has to say about Vale S.A. (NYSE:VALE) in its Q3 2021 investor letter:
“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.”
