In this article we discuss the 5 high-yield dividend stocks according to billionaire Mario Gabelli. If you want to read our detailed analysis of Gabelli’s hedge fund performance and history, go directly to the 10 Best High-Yield Dividend Stocks According to Billionaire Mario Gabelli.
5. Energy Transfer LP (NYSE: ET)
Number of Hedge Fund Holders: 25
Dividend Yield: 7.09%
Energy Transfer LP (NYSE: ET) is one of the key players in the propane and natural gas pipeline. Its valuation, deleveraging and cash flow are healthy enough to attract more investment.
Energy Transfer LP is well diversified and operates at a scale that is large enough to withstand volatility in commodity prices, as was the case in 2020. The company remains focused on sustainability and growth, which might result in cost, capex and dividend cuts. ET also plans to file a petition for the reversal of a court ruling for the termination of its permit to the Dakota Access Pipeline.
Energy Transfer LP (NYSE: ET) claims that the permit denial pending investigation will lead to huge losses between $3.44 million and $4.28 million daily, potentially even more. Shutting down the pipeline means 400K bbl per day will be removed from the pipeline.
4. Enterprise Products Partners L.P. (NYSE: EPD)
Number of Hedge Fund Holders: 30
Dividend Yield: 7.61%
Enterprise Products Partners L.P. (NYSE: EPD) is an energy sector company that provides midstream energy services to companies that produce crude oil and natural gas, and other petrochemicals. The company also provides midstream services to consumers. The company announced a dividend of $0.45 per share on April 8, which was consistent with the previously declared dividend.
Enterprise Products Partners recently sued CPS Energy, a municipal power utility in San Antonio, for failing to make a $100 million payment for natural gas deliveries made during the Texas winter storm in February.
Enterprise Products Partners L.P. (NYSE: EPD) is one of the best high yield dividend stocks. Its dividend performance has been positive with progressive gains for the last 22 years. Its strong fundamentals have provided $38.8 billion worth of value to shareholders since 1998.
3. TOTAL SE (NYSE: TOT)
Number of Hedge Fund Holders: 14
Dividend Yield: 6.80%
TOTAL SE (NYSE: TOT) is a French company that has operations in the oil and gas industry. The company recently announced that its Lake Albert project which has been experiencing delays will start exporting crude in 2025. The announcement was made after the finalization of important agreements necessary to facilitate the development of two Ugandan oil fields, as well as the development of a pipeline in Tanzania.
The pipeline will transport oil from Uganda to the Tanga port in Tanzania. Its construction will cost $3.5 billion and Total will build it in partnership with CNOOC Limited (CEO). The entire operation will cost roughly $5.1 billion and current estimates suggest that it produce more than 1 billion barrels of oil. Total intends to resume refinery activities at its Gonfreville refinery based in France in May this year.
TOTAL SE (NYSE: TOT)’s refining activities as the Texas Gulf Coast-based Port Arthur refinery were disrupted due to unplanned maintenance activities which may have been necessitated by the winter storm in February this year. Total recently signed a major deal with Iraq to build four large-scale energy projects, including a 1,000-megawatt solar energy project. The investment for the four projects is estimated to cost over $7 billion. The company’s portfolio of projects under development, as well as its ongoing operations, highlight its ability to remain one of the best high yield dividend stocks.
2. Vodafone Group Plc (NASDAQ: VOD)
Number of Hedge Fund Holders: 17
Dividend Yield: 8.28%
Vodafone Group Plc (NASDAQ: VOD) is a British telecommunications company that has operations across the world. It announced earlier this year that the price range for the planned IPO of Vantage Towers would range from €22.50 to €29.00. The company also revealed that IPO was expected to raise at least €950 million from investors.
Vodafone Group Plc (NASDAQ: VOD) recently signed a deal with RingCentral for a co-branded venture to offer contact center-as-a-service and cloud services. Vodafone also secured a long-term agreement with Discovery, Inc. (DISCA). The agreement will allow Vodafone customers across 12 markets to access content from Discovery’s portfolio. The deal will also enable European customers to access Discovery+.
Discovery will access around 100 million customers subscribed to Vodafone’s mobile, broadband and TV services. The deal should provide more opportunities for Vodafone to continue on its high yield dividend streak.
1. AllianceBernstein Holding L.P. (NYSE: AB)
Number of Hedge Fund Holders: 9
Dividend Yield: 8.98%
AllianceBernstein Holding L.P. (NYSE: AB) is an asset management company that offers research and investment management services across the globe. Although it is one of the best high yield dividend stocks, it received a downgrade to “neutral” by William Katz, an analyst at Citi Bank.
AllianceBernstein Holding L.P. (NYSE: AB) has gained 20% year-to-date, but Katz believes there is limited upside. It rallied by 161% in 2020, outperforming the S&P 500 by more than 62% and the Dow Jones by more than 81%, reinforcing its high yield dividend stock status. The investment firm released its preliminary figures earlier this year, revealing that it had $688 billion worth of assets under management in February 2021. It was slightly higher than its $683 billion AUM figure in the previous month. The investment company had $14.9 billion in active net inflows in 2020.
You can also take a peek at Top 10 Dividend Stocks that Pay Monthly and 10 Best Healthcare Dividend Stocks.
