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5 Extreme Dividend Stocks With Upside Potential

This article presents an overview of the 5 Extreme Dividend Stocks With Upside Potential. For a detailed overview of such stocks, read our article, 12 Extreme Dividend Stocks With Upside Potential.

5. Equinor ASA (NYSE:EQNR)

Number of Hedge Fund Investors: 14

Energy company Equinor ASA (NYSE:EQNR) has a dividend yield of over 11%. The stock’s price target according to data compiled by Yahoo Finance is $36.10.

A total of 14 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Equinor ASA (NYSE:EQNR). The most significant stakeholder of Equinor ASA (NYSE:EQNR) during this period was Brandon Haley’s Holocene Advisors which owns a $14 million stake in Equinor ASA (NYSE:EQNR).

Equinor ASA (NYSE:EQNR) in Q3 earnings call talked about its dividends and buybacks:

We continue with strong capital distribution, in line with what we communicated at our Capital Markets update. For the quarter, the Board approved an ordinary cash dividend of $0.30 per share as well as continuing the extraordinary dividend of $0.60 per share, for a total of $0.90 in cash dividend.

We continue our share buyback program. The fourth and final tranche will be $1.67 billion in line with our program for 2023 of total $6 billion. For this year, we are delivering a total capital distribution of around $17 billion. Then turning to safety. In August, there was a fatality of a crew member who fell overboard on an LNG tanker in Malaysia. The vessel was in operation for Equinor and the tragic incident is affecting everyone involved. So, this is a strong reminder that even with a positive safety trend, we must keep focusing on safety in all our activities. Safety will remain our top priority. In the quarter, we produced 2,007,000 barrels of oil and gas per day. And as you see on the slide, this is essentially more oil, but less gas than in the third quarter last year.

Read the entire earnings call transcript here.

4. Nordic American Tankers Ltd (NYSE:NAT)

Number of Hedge Fund Investors: 15

Nordic American Tankers Ltd (NYSE:NAT) ranks 4th in our list of the extreme dividend stocks with upside potential. Data from Yahoo Finance shows that the stock’s price target set by analysts is $6.20. In November Nordic American Tankers Ltd (NYSE:NAT) posted Q3 results. GAAP EPS in the period came in at $0.04, missing estimates by $0.02. Revenue in the quarter jumped about 1.4% year over year to $48.04 million, missing estimates by $2.08 million.

Insider Monkey’s proprietary database of 910 hedge funds shows that 15 funds had stakes in Nordic American Tankers Ltd (NYSE:NAT).

3. Frontline Plc (NYSE:FRO)

Number of Hedge Fund Investors: 17

Another oil tanker company in our list, Frontline Plc (NYSE:FRO) in the third quarter earned $0.36 per share, missing estimates by $0.11. Revenue in the quarter fell about 1.3% year over year to $377.09 million, beating estimates by $128.29 million.

Answering a question about whether Frontline Plc (NYSE:FRO) has an official policy of paying 80% of earnings in dividends, Frontline Plc’s (NYSE:FRO) CEO Lars Barstad said:

“As you rightfully say, we don’t have a policy, but the expectation should be around 80%, and we’ll continue to do that, as long as the market allows us to do that. This is why we don’t really have a policy because we don’t want to be forced to pay out the dividend when it’s not kind of feasible from a financial perspective. So, this is basically at the discretion of our Board. But, we have a main shareholder who is more interested in dividends than you are, so I think you should expect that to continue going forward.”

Read the company’s earnings call transcript here.

2. British American Tobacco PLC (NYSE:BTI)

Number of Hedge Fund Investors: 17

According to Wall Street analyst price targets data compiled by Yahoo Finance, the average price target set by analysts for British American Tobacco PLC (NYSE:BTI) is $41, while the stock was trading at around $29 as of December 16.

The stock has a dividend yield of about 10% and a PE ratio of 5.91.

As of the end of the third quarter of 2023, 17 hedge funds had stakes in British American Tobacco PLC (NYSE:BTI). The biggest hedge fund stakeholder of British American Tobacco PLC (NYSE:BTI) was William B. Gray’s Orbis Investment Management which owns a $211 million stake in British American Tobacco PLC (NYSE:BTI).

1. Vodafone Group Plc (NASDAQ:VOD)

Number of Hedge Fund Investors: 22

Vodafone Group Plc (NASDAQ:VOD) ranks first in our list of the best extreme dividend stocks with upside potential. The stock has a dividend yield of about 11% as of December 16.

A total of 22 hedge funds tracked by Insider Monkey were long Vodafone Group Plc (NASDAQ:VOD) as of the end of September 2023.

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the 12 Best Gold Stocks With Dividends and the 12 Best Non-REIT Dividend Stocks To Invest In.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

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We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

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