5 High Yield Dividend Stocks to Buy According to Billionaire David Harding

4. Kosmos Energy Ltd (NYSE: KOS)

No. of Hedge Fund Holders: 10
Dividend Yield: 6.8%

The company deals with the exploration and production of oil and natural gas in regions of Africa that are under-explored. Some of the countries where it operates include Morocco, Cameroon, and Ghana. 10 hedge funds had invested in Kosmos Energy in Q4 2020.

Kosmos Energy has been uniquely positioning itself to meet the growing demand for LNG in developing economies. Kosmos Energy reported a net income of $8 million, equivalent to $0.02 per diluted share in Q4 2020. It had an adjusted net loss of $49 million or $0.12 per diluted share for the same period. The company’s Q4 revenue was $274 million, or $41.84 per BOE.

Goldman Sachs raised the price target for the company’s stock from $2.40 to $4.50 and upgraded the stock from neutral to a ‘’buy.’’ The investment bank justified the upgraded rating by stating that the company’s LNG asset called Tortue is underappreciated as far as its value is concerned. This underappreciation falls in line with David Harding’s criteria for the best high yield dividend stocks. Neil Mehta, an analyst at Goldman Sachs, revealed that the revised update was courtesy of positive expectations of free cash flow in the second half of 2021 and well into 2022. Oil recovery and improving volumes in Ghana highlight Tortue’s attractive nature as a long-term investment.