In this article, we will be looking at 5 high yield dividend stocks to buy in August. If you want to see our detailed analysis of these stocks and dividend investing, you can go directly to the 10 High Yield Dividend Stocks to Buy in August.
5. Ellington Financial Inc. (NYSE: EFC)
Number of Hedge Fund Holders: 6
Dividend Yield: 9.1%
Ellington Financial Inc. (NYSE: EFC) is a company that focuses on investing in financial assets like residential and commercial mortgage-backed securities, residential and commercial mortgage loans, consumer loans, and other related assets. It ranks 5th on our list of high yield dividend stocks to buy in August.
BTIG’s Eric Hagen raised his price target on Ellington Financial Inc. (NYSE: EFC) shares this May from $18.50 to $19, reiterating a Buy rating at the same time. Additionally, UBS has a Neutral rating on shares of Ellington Financial Inc. (NYSE: EFC) as well.
In the first quarter of 2021, Ellington Financial Inc. (NYSE: EFC) had an FFO of $0.43, beating the previous quarter’s FFO of $0.37. The company’s revenue was $40.08 million, also beating the previous quarter’s $39.07 million revenue. Ellington Financial Inc. (NYSE: EFC) has also gained 15.12% in the past 6 months and 24.11% year to date.
By the end of the first quarter of 2021, 6 hedge funds out of the 866 tracked by Insider Monkey held stakes in Ellington Financial Inc. (NYSE: EFC) worth roughly $38.6 million. This is compared to 9 hedge funds in the previous quarter with a total stake value of approximately $40.5 million.
4. Antero Midstream Corporation (NYSE: AM)
Number of Hedge Fund Holders: 17
Dividend Yield: 9.7%
Antero Midstream Corporation (NYSE: AM), an energy company, works to service increasing natural gas and natural gas liquid production in the Appalachian Basin. The company ranks 4th on our list of high yield dividend stocks to buy in August and is based in Denver, Colorado.
Morgan Stanley’s Mark Carlucci upgraded shares of Antero Midstream Corporation (NYSE: AM) this March from Underweight to Equal Weight, with a raised price target of $11 versus the previous $6 price target.
In the second quarter of 2021, Antero Midstream Corporation (NYSE: AM) had an EPS of $0.23, beating estimates by $0.01. The company’s revenue was $232.79 million, up 5,94% year over year and also beating estimates by $11.9 million. Antero Midstream Corporation (NYSE: AM) has also gained 14.43% in the past 6 months and 20.58% year to date.
By the end of the first quarter of 2021, 17 hedge funds out of the 866 tracked by Insider Monkey held stakes in Antero Midstream Corporation (NYSE: AM) worth roughly $123 million. This is compared to 19 hedge funds in the previous quarter with a total stake value of approximately $141 million.
Bonhoeffer Capital Management, a value-oriented investment management firm, mentioned Antero Midstream Corporation (NYSE: AM) in its fourth-quarter 2020 investor letter. Here’s what they said:
“Public LBOs (32% of Portfolio; Quarterly Average Performance +25%)
This includes our broadcast TV franchises, leasing and roll-on/roll-off (RORO) shipping, and our natural gas pipeline firm. One trend in these levered firms is the increasing spread between bond yields and the firms’ free cash flow yield.
An example is Antero Midstream, whose FCF yield was 15% as of December 31, 2020, with a debt yield of 6% with the bond/equity FCF spread of 9%. This is a large spread given that Antero Midstream has completed its backbone infrastructure and gathering investment and capital expenditures should be small going forward. With natural gas prices rebounding, Antero Midstream cash flows become more secured as Antero Resources has more cash flow cushion in making payments to Antero Midstream. The recovery in natural gas prices is expected to continue as the economy opens up and low oil prices have shut down Permian oil wells that were generating almost-free associated natural gas. Antero Midstream’s FCF yield of 15% is also higher than similarly secured Antero subordinated debt with a yield of 7.8%.”
3. Natural Health Trends Corp. (NASDAQ: NHTC)
Number of Hedge Fund Holders: N/A
Dividend Yield: 10.9%
Natural Health Trends Corp. (NASDAQ: NHTC) is a company operating internationally in the direct-selling and e-commerce businesses. The company’s subsidiaries deal in personal care, wellness, and quality of life products and it ranks 3rd on our list of high yield dividend stocks to buy in August.
In light of the announcement of its Q2 results, Natural Health Trends Corp. (NASDAQ: NHTC) commented that its performance for the quarter showed “sequential growth,” mentioning that it had seen its fifth quarter of positive operating income and net income in a row, alongside its third consecutive quarter of positive cash flow generation.
In the second quarter of 2021, Natural Health Trends Corp. (NASDAQ: NHTC) had an EPS of $0.02, surpassing the $0.01 EPS of the previous quarter. The company’s revenue was $3.93 million, also beating the $3.25 million revenue from the previous quarter. Natural Health Trends Corp. (NASDAQ: NHTC) has also gained 8.33% in the past 6 months and 44.74% year to date.
2. ARMOUR Residential REIT, Inc. (NYSE: ARR)
Number of Hedge Fund Holders: 9
Dividend Yield: 11.6%
ARMOUR Residential REIT, Inc. (NYSE: ARR), a residential REIT founded in 2008, ranks 2nd on our list of high yield dividend stocks to buy in August. The company invests only in residential mortgage-backed securities issues by the US government’s sponsored entities.
This July, B. Riley’s analyst Matt Howlett began covering shares of ARMOUR Residential REIT, Inc. (NYSE: ARR) with a Neutral rating. The analyst also placed an $11.50 price target on the stock.
In the second quarter of 2021, ARMOUR Residential REIT, Inc. (NYSE: ARR) had an FFO of $0.21, missing estimates by $0.07. The company’s revenue was $16.7 million, beating the previous quarter’s revenue of $16.06 million. ARMOUR Residential REIT, Inc. (NYSE: ARR) has also gained 8.44% in the past year.
By the end of the first quarter of 2021, 9 hedge funds out of the 866 tracked by Insider Monkey held stakes in ARMOUR Residential REIT, Inc. (NYSE: ARR) worth roughly $22.2 million. This is compared to 13 hedge funds in the previous quarter with a total stake value of approximately $23.5 million.
1. Orchid Island Capital, Inc. (NYSE: ORC)
Number of Hedge Fund Holders: 8
Dividend Yield: 16.1%
Orchid Island Capital, Inc. (NYSE: ORC) is next and last on our list of high yield dividend stocks to buy in August and ranks 1st. It is a speciality finance company investing primarily in residential mortgage-backed securities on a leveraged basis.
Ladenburg holds a Buy rating on shares of Orchid Island Capital, Inc. (NYSE: ORC), an upgrade from the stock’s previous rating of Neutral.
In the second quarter of 2021, Orchid Island Capital, Inc. (NYSE: ORC) had an FFO of $0.24, missing estimates by $0.03. The company’s revenue was $27.70 million, up 21.59% year over year and beating estimates by $1.41 million.
By the end of the first quarter of 2021, 8 hedge funds out of the 866 tracked by Insider Monkey held stakes in Orchid Island Capital, Inc. (NYSE: ORC) worth roughly $19.9 million. This is compared to 10 hedge funds in the previous quarter with a total stake value of approximately $14.8 million.
You can also take a look at 10 Best Dividend Paying Stocks to Buy Under $50 and 10 Best Dividend Stocks Under $20.
