In this article, we discuss 5 high dividend stocks with attractive payout ratios. If you want to see some more stocks in this selection, click 10 High Dividend Stocks with Attractive Payout Ratios.
5. Franchise Group, Inc. (NASDAQ:FRG)
Dividend Yield as of March 25: 5.88%
Dividend Payout Ratio: 38%
Number of Hedge Fund Holders: 21
Franchise Group, Inc. (NASDAQ:FRG) is a Virginia-based holding corporation that owns a number of companies specializing in tax preparation and general retail. The stock yields 5.88% as of March 25.
On February 23, Franchise Group, Inc. (NASDAQ:FRG) declared a $0.625 per share quarterly dividend. The dividend is payable on April 15, to shareholders of record on April 1.
Franchise Group, Inc. (NASDAQ:FRG) published its fourth quarter results on February 23, posting GAAP earnings per share of $3.53, topping consensus estimates by $2.89. Revenue for the period came in at $942.28 million, surpassing consensus by approximately $93 million.
Barrington analyst Alexander Paris lifted the price target on Franchise Group, Inc. (NASDAQ:FRG) on December 8 to $65 from $58 and reiterated an Outperform rating on the shares, following the company’s above consensus initial outlook for FY22 and an increase of 67% in its quarterly dividend.
According to the fourth quarter database of Insider Monkey, 21 hedge funds were bullish on Franchise Group, Inc. (NASDAQ:FRG), up from 16 funds in the earlier quarter. Ophir Asset Management held the biggest position in the company, with 982,957 shares worth $51.2 million.
Here is what Clark Street Value has to say about Franchise Group, Inc. (NYSE:MDC) in its Q4 2021 investor letter:
“Franchise Group (FRG) has grown into my largest position, it is hard to believe that CEO Brian Kahn has created so much value in a short period of time, especially after his gaff with Rent-A-Center (RCII) when he forgot to send in an extension notice triggering the termination of that deal. I’m content to just sit on these three for the longer term and defer the taxes.”
4. Camping World Holdings, Inc. (NYSE:CWH)
Dividend Yield as of March 25: 6.49%
Dividend Payout Ratio: 12.37%
Number of Hedge Fund Holders: 22
Camping World Holdings, Inc. (NYSE:CWH) is an Illinois-based company that sells recreational vehicles and camping equipment. The company’s Q4 results were posted on February 22, announcing an EPS of $0.90, above consensus by $0.10. Revenue over the period jumped 21.50% year-over-year to $1.38 billion, exceeding market estimates by $82.10 million.
On February 22, Camping World Holdings, Inc. (NYSE:CWH) declared a $0.625 per share quarterly dividend, a 25% increase from its prior dividend of $0.50. The dividend is payable on March 29, to shareholders of record on March 14.
Among the hedge funds tracked by Insider Monkey, 22 funds were bullish on Camping World Holdings, Inc. (NYSE:CWH), compared to 23 funds in the prior quarter. Abrams Capital Management is the leading shareholder of the company, owning more than 5 million shares worth $206.3 million.
Here is what Wasatch Core Growth Fund has to say about Camping World Holdings, Inc. (NYSE:CWH) in its Q4 2020 investor letter:
“A relative underperformer for the quarter was Camping World Holdings, Inc. (CWH), which operates more than 160 retail locations specializing in recreational vehicles and associated parts, accessories and services. Even before the pandemic, similar to our analysis for YETI, we had already recognized the trends favoring Camping World’s market segment. Although the stock was relatively flat for the quarter, we think the price is still reasonable based on strong consumer interest and the business improvements made by the management team in recent years.”
3. Moelis & Company (NYSE:MC)
Dividend Yield as of March 25: 5.20%
Dividend Payout Ratio: 43.52%
Number of Hedge Fund Holders: 26
Moelis & Company (NYSE:MC) is headquartered in New York, operating as an investment banking advisory company across the United States, Europe, and international markets. Moelis & Company (NYSE:MC)’s dividend yield on March 25 came in at 5.20%.
Moelis & Company (NYSE:MC) declared on February 9 declared a $0.60 per share quarterly dividend. The dividend is payable on March 28, to shareholders of record on February 22.
On March 9, Piper Sandler analyst Jeffery Harte lowered the price target on Moelis & Company (NYSE:MC) to $61 from $70 and maintained an Overweight rating on the shares. The reduced price target for independent financial advisors accounts for higher macroeconomic uncertainty.
According to the Q4 database of Insider Monkey, 26 hedge funds were bullish on Moelis & Company (NYSE:MC), compared to 25 funds in the prior quarter. Heard Capital owned the largest stake in the company, with 598,938 shares worth $37.4 million.
2. American Eagle Outfitters, Inc. (NYSE:AEO)
Dividend Yield as of March 25: 4.13%
Dividend Payout Ratio: 30.94%
Number of Hedge Fund Holders: 31
American Eagle Outfitters, Inc. (NYSE:AEO) markets and sells clothing, accessories, and personal care products for men, women, and children. The stock yields 4.13% as of March 25. The company declared on March 2 a $0.18 per share quarterly dividend, which was paid on March 24.
On March 4, Cowen analyst Oliver Chen lowered the price target on American Eagle Outfitters, Inc. (NYSE:AEO) to $25 from $31 and reiterated an Outperform rating on the shares. The analyst believes the underlying brand momentum remains intact but supply chain challenges and increased freight costs are pressure points.
Among the hedge funds tracked by Insider Monkey, 31 hedge funds were long American Eagle Outfitters, Inc. (NYSE:AEO), up from 24 funds in the earlier quarter. Select Equity Group is the largest shareholder of the company, with 21.5 million shares worth $546.75 million.
1. Energy Transfer LP (NYSE:ET)
Dividend Yield as of March 25: 6.61%
Dividend Payout Ratio: 33.29%
Number of Hedge Fund Holders: 36
Energy Transfer LP (NYSE:ET) is a Texas-based energy company that provides natural gas transportation and storage facilities. Hedge fund sentiment around the stock was positive. In Q4 2021, 36 hedge funds were bullish on Energy Transfer LP (NYSE:ET), up from 29 funds in the earlier quarter.
On January 25, Energy Transfer LP (NYSE:ET) declared a $0.175 per share quarterly dividend, a 14.8% increase from its prior dividend of $0.1525. The dividend was distributed on February 18.
Mizuho analyst Gabriel Moreen raised the price target on Energy Transfer LP (NYSE:ET) on February 18 to $14 from $13 and reiterated a Buy rating on the shares. According to the analyst, Energy Transfer LP (NYSE:ET)’s positive commercial updates were more important than issuing “strong” 2022 EBITDA guidance.
Among the hedge funds tracked by Insider Monkey, David Tepper’s Appaloosa Management LP is the biggest shareholder of the company, with 12.3 million shares worth close to $102 million.
Miller Value Partners, an investment firm, talked about Energy Transfer L.P. (NYSE:ET) in its Q2 2021 investor letter. Here is what the fund said:
“Energy Transfer LP (ET) rose over the period along with the price of oil climbing 40.59% over the period. The company received positive news that the Dakota Access Pipeline project would not be shut down while the Environmental Impact Statement by the US Army Corps of Engineers is drawn up. Energy Transfer reported strong 1Q results with revenue of $17B surpassing expectations for $11.8B with adjusted earnings before income, taxes, depreciation and amortization (EBITDA) hitting $5.04B ahead of consensus of $2.77B. The company raised full year adjusted EBITDA guidance to $12.9-13.3B from $10.6-11.0B previously, with the increase largely related to the benefits realized from Winter Storm Uri. The company paid down $3.7B in debt during the quarter, using strong cash flow to reduce leverage. The company also announced the issuance of $900M in 6.5% Series H perpetual preferreds with the company using the proceeds to repay debt and for general purposes.”
You can also take a look at 10 Best High Dividend Stocks to Buy Now and 10 Best Roth IRA Stocks To Buy in 2022.
