5 Dividend Stocks with Over 10% Yield

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

Dividend Yield as of June 24: 19.17%

Vale S.A. (NYSE:VALE) is a Brazilian mining company that is involved in the production of iron ore, nickel, and pellets. The company is launching a venture capital to invest over $100 million in sustainable mining startups globally. VALE would hold 3% to 5% stakes in these firms.

In Q1 2022, Vale S.A. (NYSE:VALE) posted an EPS of $0.93, which beat estimates by $0.12. However, the company’s revenue of $10.81 billion missed consensus by $710 million. The company also signed a long-term nickel supply deal with Tesla, according to which, Tesla will purchase nickel from Vale S.A. (NYSE:VALE) mines in Canada.

On February 25, Vale S.A. (NYSE:VALE) announced an interim dividend of $0.73 per share, with a dividend yield of 19.17%, as of June 24. In June, Jefferies mentioned that the mining sector is undervalued and will outperform when China recovers from the pandemic. The firm upgraded Vale S.A. (NYSE:VALE) to Buy, with a $24 price target, up from $17.

At the end of March 31, 27 hedge funds tracked by Insider Monkey were bullish on Vale S.A. (NYSE:VALE), up from 25 in the previous quarter. The combined value of these stakes is over $2.3 billion, compared with $1.7 billion worth of stakes held by hedge funds in Q4 2021. Ken Fisher’s Fisher Asset Management was the company’s leading shareholder in Q1.

Grantham Mayo Van Otterloo & Co. LLC mentioned Vale S.A. (NYSE:VALE) in its Q1 2022 investor letter. Here is what the firm has to say:

“Let’s look at Vale (NYSE:VALE), the world’s largest iron ore producer, as a case study for how shareholders can be rewarded. Vale’s stock price is about where it was at the beginning of last year. Despite the market’s lack of enthusiasm, the company generated about $20 billion of free cash flow last year. Not bad for a company with a market cap of a little over $100 billion and no substantive debt as of the end of March. ⁴ What did the company do with all that cash? Last year, Vale paid out about $9 billion in regularly scheduled dividends and distributed another $10 billion between extra dividends and share repurchases. Combined with dividends distributed in the first quarter of this year and a recently announced share repurchase, Vale has returned or announced the return of over $33 billion since the beginning of last year, almost a 32% yield relative to the market cap of the company. Not a bad way to win.”