In this article, we discuss 5 high dividend S&P 500 stocks. If you want to see some more high yielding stocks, click 10 High Dividend S&P 500 Stocks.
5. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 51
Dividend Yield as of April 26: 7.05%
Devon Energy Corporation (NYSE:DVN) is an Oklahoma-based hydrocarbon exploration company that produces and distributes petroleum, natural gas, and natural gas liquids. In the fourth quarter of 2021, elite hedge funds were largely bullish on Devon Energy Corporation (NYSE:DVN). According to Insider Monkey’s Q4 data, 51 hedge funds reported owning stakes in the company, up from 48 funds in the earlier quarter.
Devon Energy Corporation (NYSE:DVN)’s dividend yield on April 26 came in at 7.05%. On February 15, Devon Energy Corporation (NYSE:DVN) declared a $1.00 per share quarterly dividend. The dividend was paid to shareholders on March 31.
On April 25, Susquehanna analyst Biju Perincheril raised the firm’s price target on Devon Energy Corporation (NYSE:DVN) to $73 from $62 and reiterated a Positive rating on the shares. The analyst raised his oil and gas price target assumptions and contended that his Devon Energy Corporation (NYSE:DVN) target increase is based on approximately 5.7x his 2023 earnings, debt-adjusted cash flow at his $80.00 WTI/$4.25 HH price deck, in addition to forecasted dividends for the next two years.
Among the hedge funds tracked by Insider Monkey in Q4 2021, Rajiv Jain’s GQG Partners is the largest stakeholder of Devon Energy Corporation (NYSE:DVN), with 14.5 million shares worth roughly $639 million.
Here is what GoodHaven Capital Management has to say about Devon Energy Corporation (NYSE:DVN) in their Q4 2020 investor letter:
“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”
4. Walgreens Boots Alliance, Inc. (NYSE:WBA)
Number of Hedge Fund Holders: 42
Dividend Yield as of April 26: 4.19%
Walgreens Boots Alliance, Inc. (NYSE:WBA) is an Illinois-based holding company that operates retail pharmacies, offering pharmaceutical drugs and personal care products. Walgreens Boots Alliance, Inc. (NYSE:WBA) has a 46-year history of increasing dividends consistently, and the company offers a dividend yield of 4.19% as of April 26.
On March 31, Walgreens Boots Alliance, Inc. (NYSE:WBA) posted its financial results for the quarter ending February 2022. The company reported earnings per share of $1.59, above analysts’ estimates by $0.19. Revenue for the period grew 3% year-over-year to $33.76 billion, outperforming market consensus by $422.74 million.
Walgreens Boots Alliance, Inc. (NYSE:WBA) declared on January 27 a $0.4775 per share quarterly dividend, in line with previous. The dividend was distributed on March 11, to shareholders of record on February 18.
Cowen analyst Charles Ryhee on April 12 reiterated an Outperform rating on Walgreens Boots Alliance, Inc. (NYSE:WBA) but lowered the firm’s price target on the shares to $50 from $55. After viewing the Q2 results, the analyst believes his long-term thesis remains sound, but he noted that the short-term macro environment remains a headwind for Walgreens Boots Alliance, Inc. (NYSE:WBA).
According to the fourth quarter database of Insider Monkey, 42 hedge funds were long Walgreens Boots Alliance, Inc. (NYSE:WBA), up from 37 funds in the preceding quarter. Cliff Asness’ AQR Management is a notable shareholder of the company, with a position worth $117.3 million.
Here is what Miller Howard Investments has to say about Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its Q3 2021 investor letter:
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We took a position in Walgreens (WBA) based on its low valuation, high dividend yield, and stable business model.”
3. Kinder Morgan, Inc. (NYSE:KMI)
Number of Hedge Fund Holders: 39
Dividend Yield as of April 26: 5.98%
Kinder Morgan, Inc. (NYSE:KMI) is a leading American energy infrastructure company that specializes in natural gas pipeline transport and oil storage. 2022 marks the fifth consecutive annual increase to the company’s dividends.
Kinder Morgan, Inc. (NYSE:KMI) delivers a dividend yield of 5.98% as of April 26. Kinder Morgan, Inc. (NYSE:KMI) declared on April 20 a $0.2775 per share quarterly dividend, a 2.8% increase from its prior dividend of $0.27. The dividend is payable on May 16, to shareholders of the company as of May 2.
On April 20, Kinder Morgan, Inc. (NYSE:KMI) reported its Q1 2022 financial results, posting earnings per share of $0.32, beating consensus estimates by $0.04. Revenue for the period equaled $4.29 billion, exceeding analysts’ predictions by $546.32 million.
Mizuho analyst Gabriel Moreen on April 21 maintained a Buy recommendation on Kinder Morgan, Inc. (NYSE:KMI) and raised the firm’s price target on the stock to $22 from $21. According to the analyst, Kinder Morgan, Inc. (NYSE:KMI) reported a strong quarter and clearly stated its intention to pursue brownfield compression expansions on its two Permian natural gas takeaway pipelines.
According to the fourth quarter database of Insider Monkey, 39 hedge funds were bullish on Kinder Morgan, Inc. (NYSE:KMI), compared to 43 funds in the preceding quarter. Bob Peck and Andy Raab’s FPR Partners is the biggest position holder in the company, with shares worth $282.7 million.
2. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Holders: 54
Dividend Yield as of April 26: 4.67%
Gilead Sciences, Inc. (NASDAQ:GILD) is a California-based biopharmaceutical company that provides medication and therapies for liver diseases, hematology, chronic angina, oncology, arterial hypertension, and fungal infections. Gilead Sciences, Inc. (NASDAQ:GILD)’s dividend yield on April 26 came in at 4.67%.
On February 1, Gilead Sciences, Inc. (NASDAQ:GILD) declared a $0.73 per share quarterly dividend, a 2.8% increase from its last dividend of $0.71. The dividend was distributed to shareholders of the company on March 30.
Piper Sandler analyst Do Kim on April 12 raised the firm’s price target on Gilead Sciences, Inc. (NASDAQ:GILD) to $72 from $71 and kept a Neutral rating on the shares after the FDA lifted the partial clinical hold on some of its drugs. However, the analyst expects safety data to be closely scrutinized when it becomes available, and an unexpected safety imbalance could affect commercialization of drugs.
Insider Monkey’s Q4 data suggests that Gilead Sciences, Inc. (NASDAQ:GILD) was found in the public stock portfolios of 54 hedge funds, who collectively held stakes worth $2.36 billion. Jim Simons’ Renaissance Technologies is a significant position holder in the company, with more than 9 million shares valued at $659.4 million.
Here is what ClearBridge Investments Sustainability Leaders Strategy has to say about Gilead Sciences, Inc. (NASDAQ:GILD) in its Q4 2021 investor letter:
“Other pharma companies are providing solutions as well. Biopharmaceutical company Gilead Sciences’ remdesivir, sold under the brand name Veklury, is a broad-spectrum antiviral medication administered by intravenous infusion; it can shorten the time to recovery in hospitalized patients and reduce the risk of hospitalization and death in non-hospitalized patients.”
1. ONEOK, Inc. (NYSE:OKE)
Number of Hedge Fund Holders: 25
Dividend Yield as of April 26: 5.66%
ONEOK, Inc. (NYSE:OKE) is an Oklahoma-based company that specializes in the storage and transportation of natural gas. The company operates via Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines segments. ONEOK, Inc. (NYSE:OKE) delivers a dividend yield of 5.66% as of April 26.
ONEOK, Inc. (NYSE:OKE) on April 21 declared a $0.935 per share quarterly dividend, in line with previous. The dividend is payable on May 16, to shareholders of the company on May 2. After a solid 18-year history of dividend increases, the company paid the same dividend in 2021 did not increase from the prior year. However, ONEOK, Inc. (NYSE:OKE) has not slashed dividends for the last 25 years.
On March 3, Truist analyst Tristan Richardson maintained a Buy recommendation on ONEOK, Inc. (NYSE:OKE) and raised the firm’s price target on the shares to $78 from $72. The analyst stated that ONEOK, Inc. (NYSE:OKE) shares should continue to find positive support as the Bakken leverage in the present environment offers greater earnings growth potential compared to broader midstream, with activity likely to be accelerated.
According to Insider Monkey’s Q4 database, 25 hedge funds were long ONEOK, Inc. (NYSE:OKE), up from 18 funds in the prior quarter. The total stakes owned in the fourth quarter of 2021 amounted to $94.5 million. Phill Gross and Robert Atchinson’s Adage Capital Management is the largest shareholder of the company, with 475,200 shares worth roughly $28 million.
Miller Howard Investments, in its Q3 2021 investor letter, mentioned ONEOK, Inc. (NYSE:OKE) and discussed its stance on the firm. Here is what the fund said:
“In late August, we increased the portfolio’s cyclical exposure by trimming utilities after a period of relative outperformance and reallocating the capital to midstream energy, which had pulled back over the summer. We added ONEOK Inc. (OKE) with the expectation that it will benefit from increasing natural gas and natural gas liquids (NGL) recovery in the Bakken region.”
You can also take a look at 10 Undervalued Dividend Kings To Buy In 2022 and 10 Dividend Stocks With Over 5% Yield.
