5 Low Beta Dividend Stocks with High Yields

3. Mesabi Trust (NYSE:MSB)

Dividend Yield as of January 26: 11.71%

Number of Hedge Fund Holders: 5

Beta Value: 0.59

Mesabi Trust (NYSE:MSB) is a New York-based royalty trust that derives its primary income from an iron mine based in Minnesota. Since Mesabi Trust (NYSE:MSB) is not taxed as a corporation for income tax purposes, it is not allowed to partake in any business activity except for the collection and distribution of royalties and payment of expenses.

Mesabi Trust (NYSE:MSB) on January 21 declared a $1.75 per share quarterly dividend, which is a 23.2% increase from its prior dividend of $1.42. The dividend is payable on February 20, to shareholders of record on January 30. 

According to the third quarter database of Insider Monkey, 5 hedge funds were bullish on Mesabi Trust (NYSE:MSB), with stakes totaling $76.1 million. Murray Stahl’s Horizon Asset Management is the largest Mesabi Trust (NYSE:MSB) stakeholder, owning 1.97 million shares worth $58.5 million. 

Here is what Horizon Kinetics has to say about Mesabi Trust (NYSE:MSB) in its Q2 2021 investor letter:

“Also shown was the highest form of asset-light business, which is a hard-asset company, like Mesabi Trust; its revenues come directly from the asset itself, as processed by third parties. With no operating expenditures required, they are passive beneficiaries of any increase in the price of the commodity and any increase in production volumes by the third parties that bear the capital investment and operating costs. No other business model can replicate that level of profitability.”