In this article, we will be taking a look at 10 high yield dividend stocks to buy in September.
A question that many investors, particularly income investors, will tend to ask themselves before investing in dividend stocks is the following: does yield truly matter? The answers to this one question may vary and fluctuate from person to person, and may not apply to all dividend stocks, however, research has shown that in many cases, yield, particularly high yields, do matter for dividend investors. Hence, while many dividend stocks like Altria Group, Inc. (NYSE: MO), Exxon Mobil Corporation (NYSE: XOM), Moody’s Corporation (NYSE: MCO), and Walmart Inc. (NYSE: WMT), among others, are typically smart investment choices for investors today, higher-yielding stocks may actually be even better investments. Let’s look at why this is the case.
In a research thesis on which yield is better, a high one, or a low one, conducted at the University of Nevada, Reno, it was found that on the basis of the Sharpe Ratio, Geometric Return, Treynor Ratio, and Jensen’s Alpha, portfolios consisting of the 10 highest-yielding dividend stocks of the Dow 30 index outperformed the medium-yielding and low-yielding dividend stocks. This conclusion resulted in suggestions and assertions that investing in high-yielding stocks may result in higher returns, in comparison to investing in low-yielding dividend stocks.
From 1987 to 2012, the study considered a range of companies on the Dow 30, dividing the dividend payers into three categories: high yield, medium yield, and low yield, with yield averages standing at 4.53%, 2.56%, and 1.26% respectively. It was thus found that the average return for the first category between the time period studied was 10.82%, while the average returns for the remaining two categories were 8.34% and 3.30% respectively. The above thus clearly laid out how higher-yielding dividend stocks managed to outperform their lower-yielding counterparts in the past, and thus, the conclusion was drawn that the same concept can be applied, although not without zero risks, to dividends in the present and future.
Investing has become difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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Without further ado, let’s take a look at the 10 high yield dividend stocks to buy in September.
Our Methodology
We have selected high-yield dividend Insider Monkey tracks the data of about 873 hedge funds, and we have used this data to pick dividend stocks that are highly popular among hedge funds today. For each stock we have mentioned its yield and the number of hedge fund holders holding a stake in it, ranking them from the lowest to the highest. Finally, we have used analysts’ ratings to determine which stocks are favorably placed in analyst and investor circles, picking stocks with mostly positive ratings and strong fundamentals.
High Yield Dividend Stocks to Buy in September
10. Omega Healthcare Investors, Inc. (NYSE: OHI)
Number of Hedge Fund Holders: 20
Dividend Yield: 7.87%
Omega Healthcare Investors, Inc. (NYSE: OHI) is a real estate investment trust that invests in the long-term healthcare industry, primarily skilled nursing and assisted living facilities. It ranks 10th on our list of high yield dividend stocks to buy in September and owns assets within the US and the UK.
Capital One holds an Equalweight rating on shares of Omega Healthcare Investors, Inc. (NYSE: OHI) alongside a price target of $38, as of this August.
In the second quarter of 2021, Omega Healthcare Investors, Inc. (NYSE: OHI) had an FFO of $0.85, beating estimates by $0.02. The company’s revenue was $218 million, up 0.27% year over year but missing estimates by $17.89 million. Omega Healthcare Investors, Inc. (NYSE: OHI) has gained 4.97% in the past year.
By the end of the second quarter of 2021, 20 hedge funds out of the 873 tracked by Insider Monkey held stakes in Omega Healthcare Investors, Inc. (NYSE: OHI) worth roughly $142 million. This is compared to 25 hedge funds in the previous quarter with a total stake value of approximately $190 million.
Like Altria Group, Inc. (NYSE: MO), Exxon Mobil Corporation (NYSE: XOM), Moody’s Corporation (NYSE: MCO), and Walmart Inc. (NYSE: WMT), Omega Healthcare Investors, Inc. (NYSE: OHI) is a smart investment option for dividend investors today.
9. Dynex Capital, Inc. (NYSE: DX)
Number of Hedge Fund Holders: 9
Dividend Yield: 8.7%
Dynex Capital, Inc. (NYSE: DX) operates in the REIT sector to invest in mortgage-backed securities (MBS) on a leveraged basis in the US. The company ranks 9th on our list of high yield dividend stocks to buy in September and is based in Virginia, US.
In the second quarter of 2021, Dynex Capital, Inc. (NYSE: DX) had an FFO of $0.51, beating estimates by $0.04. The company’s revenue was $12.12 million, missing estimates by $2.96 million. Dynex Capital, Inc. (NYSE: DX) has gained 0.68% year to date and 14.20% in the past year.
By the end of the second quarter of 2021, 9 hedge funds out of the 873 tracked by Insider Monkey held stakes in Dynex Capital, Inc. (NYSE: DX) worth roughly $27 million. This is compared to 8 hedge funds in the previous quarter with a total stake value of approximately $24 million.
Like Altria Group, Inc. (NYSE: MO), Exxon Mobil Corporation (NYSE: XOM), Moody’s Corporation (NYSE: MCO), and Walmart Inc. (NYSE: WMT), Dynex Capital, Inc. (NYSE: DX) is a smart investment option for dividend investors today.
8. AGNC Investment Corp. (NASDAQ: AGNC)
Number of Hedge Fund Holders: 19
Dividend Yield: 8.7%
AGNC Investment Corp. (NASDAQ: AGNC) is a real estate investment trust that invests in residential mortgage pass-through securities (RMBS) and collateralized mortgage obligations. It ranks 8th on our list of high yield dividend stocks to buy in September.
Barclays holds an Overweight rating and $17 price target on shares of AGNC Investment Corp. (NASDAQ: AGNC), led by analyst Mark DeVries, as of this July.
In the second quarter of 2021, AGNC Investment Corp. (NASDAQ: AGNC) had an FFO of $0.76, beating estimates by $0.11. The company’s revenue was $232 million, missing estimates by $90.23 million. AGNC Investment Corp. (NASDAQ: AGNC) has gained 0.88% in the past 6 months and 4.81% year to date.
By the end of the second quarter of 2021, 19 hedge funds out of the 873 tracked by Insider Monkey held stakes in AGNC Investment Corp. (NASDAQ: AGNC) worth roughly $151 million. This is compared to 18 hedge funds in the previous quarter with a total stake value of approximately $167 million.
Like Altria Group, Inc. (NYSE: MO), Exxon Mobil Corporation (NYSE: XOM), Moody’s Corporation (NYSE: MCO), and Walmart Inc. (NYSE: WMT), AGNC Investment Corp. (NASDAQ: AGNC) is a smart investment option for dividend investors today.
7. Sachem Capital Corp. (NYSE: SACH)
Number of Hedge Fund Holders: 4
Dividend Yield: 10.04%
Sachem Capital Corp. (NYSE: SACH) is a real estate finance that company originates, underwrites, funds, services, and manages short-term loans secured by first mortgage liens on property in Connecticut. The company ranks 7th on our list of high yield dividend stocks to buy in September.
Janney Montgomery Scott holds a Buy rating on shares of Sachem Capital Corp. (NYSE: SACH), as of this June.
In the second quarter of 2021, Sachem Capital Corp. (NYSE: SACH) had an FFO of $0.10, missing estimates by $0.01. The company’s revenue was $6.71 million, up 55.75% year over year and beating estimates by $0.98 million. Sachem Capital Corp. (NYSE: SACH) has gained 5.53% in the past 6 months and 16.43% year to date.
By the end of the second quarter of 2021, 4 hedge funds out of the 873 tracked by Insider Monkey held stakes in Sachem Capital Corp. (NYSE: SACH) worth roughly $6 million. This is compared to 1 hedge fund in the previous quarter with a total stake value of approximately $1.02 million.
Like Altria Group, Inc. (NYSE: MO), Exxon Mobil Corporation (NYSE: XOM), Moody’s Corporation (NYSE: MCO), and Walmart Inc. (NYSE: WMT), Sachem Capital Corp. (NYSE: SACH) is a smart investment option for dividend investors today.
6. Antero Midstream Corporation (NYSE: AM)
Number of Hedge Fund Holders: 16
Dividend Yield: 9.55%
Antero Midstream Corporation (NYSE: AM) is an oil and gas storage and transportation company operating through its Gathering and Processing, and Water Handling segments. The company ranks 6th on our list of high yield dividend stocks to buy in September.
Morgan Stanley holds an Equal Weight rating on shares of Antero Midstream Corporation (NYSE: AM) as of this March. The firm also raised the price target on Antero Midstream Corporation (NYSE: AM) shares from $6 to $11.
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 beating estimates by $11.90 million. Antero Midstream Corporation (NYSE: AM) has gained 9.06% in the past 6 months and 32.50% year to date.
By the end of the second quarter of 2021, 16 hedge funds out of the 873 tracked by Insider Monkey held stakes in Antero Midstream Corporation (NYSE: AM) worth roughly $106 million. This is compared to 17 hedge funds in the previous quarter with a total stake value of approximately $123 million.
Like Altria Group, Inc. (NYSE: MO), Exxon Mobil Corporation (NYSE: XOM), Moody’s Corporation (NYSE: MCO), and Walmart Inc. (NYSE: WMT), Antero Midstream Corporation (NYSE: AM) is a smart investment option for dividend investors today.
5. PennyMac Mortgage Investment Trust (NYSE: PMT)
Number of Hedge Fund Holders: 11
Dividend Yield: 9.67%
PennyMac Mortgage Investment Trust (NYSE: PMT), a specialty finance company, operates as a mortgage REIT through its Credit Sensitive Strategies, Interest Rate Sensitive Strategies, and Correspondent Production segments. The company ranks 5th on our list of high yield dividend stocks to buy in September.
Barclays holds an Equal Weight rating on shares of PennyMac Mortgage Investment Trust (NYSE: PMT), alongside a raised price target of $19, as of this June.
In the second quarter of 2021, PennyMac Mortgage Investment Trust (NYSE: PMT) had an FFO of $0.32, missing estimates by $0.27. The company’s revenue was $121.57 million, also missing estimates by $49.98 million. PennyMac Mortgage Investment Trust (NYSE: PMT) has however gained 3.22% in the past 6 months and 13.75% year to date.
By the end of the second quarter of 2021, 11 hedge funds out of the 873 tracked by Insider Monkey held stakes in PennyMac Mortgage Investment Trust (NYSE: PMT) worth roughly $10.4 million. This is compared to 8 hedge funds in the previous quarter with a total stake value of approximately $16 million.
4. Annaly Capital Management, Inc. (NYSE: NLY)
Number of Hedge Fund Holders: 19
Dividend Yield: 10.4%
Annaly Capital Management, Inc. (NYSE: NLY), a mortgage REIT, is based in New York and invests in residential and commercial assets, among others. The company ranks 4th on our list of high yield dividend stocks to buy in September.
This June, Keefe Bruyette placed a Market Perform rating on shares of Annaly Capital Management, Inc. (NYSE: NLY), alongside a price target of $9.50.
In the second quarter of 2021, Annaly Capital Management, Inc. (NYSE: NLY) had an FFO of $0.30, beating estimates by $0.02. The company’s revenue was $239.77 million, missing estimates by $185.72 million. Annaly Capital Management, Inc. (NYSE: NLY) has gained 2.56% in the past 6 months and 4.68% year to date.
By the end of the second quarter of 2021, 19 hedge funds out of the 873 tracked by Insider Monkey held stakes in Annaly Capital Management, Inc. (NYSE: NLY) worth roughly $98.2 million. This is compared to 15 hedge funds in the previous quarter with a total stake value of approximately $140 million.
3. Two Harbors Investment Corp. (NYSE: TWO)
Number of Hedge Fund Holders: 30
Dividend Yield: 10.4%
Two Harbors Investment Corp. (NYSE: TWO) is a mortgage REIT that invests in residential mortgage-backed securities, non-agency securities, and other assets in the US. The company ranks 3rd on our list of high yield dividend stocks to buy in September.
This June, analysts at Credit Suisse placed a Hold rating on shares of Two Harbors Investment Corp. (NYSE: TWO), alongside a $7.50 price target.
In the second quarter of 2021, Two Harbors Investment Corp. (NYSE: TWO) had an FFO of $0.19, beating the previous quarter’s FFO of $0.17. The company’s revenue was $19.04 million, missing estimates by $24.47 million. Two Harbors Investment Corp. (NYSE: TWO) has gained 4.85% year to date and 20.67% in the past year.
By the end of the second quarter of 2021, 30 hedge funds out of the 873 tracked by Insider Monkey held stakes in Two Harbors Investment Corp. (NYSE: TWO) worth roughly $160 million. This is compared to 32 hedge funds in the previous quarter with a total stake value of approximately $200 million.
2. Cherry Hill Mortgage Investment Corporation (NYSE: CHMI)
Number of Hedge Fund Holders: 5
Dividend Yield: 12.04%
Cherry Hill Mortgage Investment Corporation (NYSE: CHMI), a residential real estate finance company, acquires, invests in, and manages residential mortgage assets in the US. The company ranks 2nd on our list of high yield dividend stocks to buy in September.
JMP Securities placed a Market Perform rating on shares of Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) this August.
In the second quarter of 2021, Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) had an FFO of $0.28, beating estimates by $0.02. The company’s revenue was $6.64 million, beating estimates by $3.18 million. Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) has gained 2.73% year to date.
By the end of the second quarter of 2021, 5 hedge funds out of the 873 tracked by Insider Monkey held stakes in Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) worth roughly $16 million. This is compared to 4 hedge funds in the previous quarter with a total stake value of approximately $11 million.
1. Natural Health Trends Corp. (NASDAQ: NHTC)
Number of Hedge Fund Holders: 2
Dividend Yield: 12.31%
Natural Health Trends Corp. (NASDAQ: NHTC), a direct-selling e-commerce company, offers personal care, wellness, lifestyle, and other products under the NHT Global brand. The company ranks 1st on our list of high yield dividend stocks to buy in September.
In the second quarter of 2021, Natural Health Trends Corp. (NASDAQ: NHTC) had an EPS of $0.02, beating the previous quarter’s EPS of $0.01. The company’s revenue was $3.93 million, also beating the previous quarter’s revenue of $3.25 million. Natural Health Trends Corp. (NASDAQ: NHTC) has gained 39.88% year to date and 30.38% in the past year.
By the end of the second quarter of 2021, 2 hedge funds out of the 873 tracked by Insider Monkey held stakes in Natural Health Trends Corp. (NASDAQ: NHTC) worth roughly $6.6 million. This is compared to 1 hedge fund in the previous quarter with a total stake value of approximately $6.4 million.
See also 15 Best Medical Stocks to Invest In and 10 Best Cryptocurrencies to Invest in According to Reddit.
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Disclosure: None. 10 High Yield Dividend Stocks to Buy in September is originally published on Insider Monkey.
