7 High Dividend Stocks Yielding Over 13%
By: Jonathan Wolfgram,
7 high dividend stocks yielding over 13% have a history of long-term rising payouts and superior total returns for extended periods compared to their non-dividend-paying peers.
Dividend yield is often the first metric we look to when evaluating a dividend-paying stock. Dividend yield alone, however, can be misleading — ultra-high dividend yields are often caused by a sudden drop in share price, thereby inflating the yield and making a company appear more profitable than it is in reality.
While it looks as though the company is paying huge dividends to investors, the ratio is exaggerated greatly by a falling share price and any money investors gain in dividends may be quickly lost in depreciation of the stock’s value. When searching for high dividend stocks, then, we should add a few additional requirements.
All seven equities on this list have dividend yields above 13%, but the highest one yields nearly 27%! In addition, each equity has a positive return for the trailing 12-month period, meaning the yield is reflective of the company’s profitability rather than the product of a falling share price.
The equities are listed in ascending order according to their dividend yields. Each of the seven high dividend stocks listed here has a dividend ratings score in the 80th percentile or higher — a composite score utilizing Stock Rover that evaluates the strength of a dividend payer by assessing its yield, payout ratio, frequency, number of dividend increases and several other metrics.
Here are the seven high dividend stocks yielding over 13%:
7 High Dividend Stocks Yielding Over 13%, #1:
Sculptor Capital (NYSE:SCU)
Dividend Yield: 13.1%
Sculptor Capital (NYSE:SCU) is an alternative asset management company, working primarily with other investment companies to manage a variety of different funds. The company services real estate funds, dedicated credit funds, multi-strategy funds and several other types of investment vehicles.
The fund has a one-year trailing return of 3.7%, and although it experienced a significant decline in response to the COVID-19 pandemic, the firm has more than recovered since then. The bulk of its growth has occurred on a recent bull run, having grown 59.9% year to date (YTD).
Sculptor Capital has a dividend yield of 13.1% and just rebooted its dividend payments on February 24, 2021, with a payout of $2.35 per share. The company typically pays dividends on a quarterly basis of consistently varying amounts, with its dividend distribution correlating very closely with the company stock price.
The company is in the 99th percentile of dividend-paying equities in its industry, ranking as the second-best payer out of 136 companies. Sculptor Capital achieved this score through a combination of its high dividend yield and astronomical dividend coverage ratio — a metric that shows how many times a company could pay its current dividend over again based on net income.
Higher dividend coverage ratios are favorable, and with a current rate of 1,420.8%, Sculptor Capital is a star. In addition, the company’s payout ratio is a low 7%, indicating Sculptor Capital has plenty of room to grow its dividend as it continues its bull run into 2021.
7 High Dividend Stocks Yielding Over 13%, #2:
Icahn Enterprises (NASDAQ:IEP)
Dividend Yield: 13.2%
Icahn Enterprises (NASDAQ:IEP) is an investment firm providing a variety of business services in the United States. It is a vastly diversified company with exposure to Investment, Pharmaceutical, Automotive, Energy, Fashion, Food Packaging, Metals and Real Estate industries. Despite its wide exposure, Icahn Enterprises receives the majority of its revenue from its Energy segment.
The company has consistently performed well with a steady upward trend in the trailing 12-month period. Its one-year return is 10.1% and its long-term returns reflect a similar level of stable growth. In the last three years, the stock has surged 55.7%.
While its capital appreciation is impressive, it is the dividend distributions that make Icahn Enterprises a fantastic pick for income investors. Since the beginning of 2019, the company has paid a stable dividend of $2.00 per share per quarter, adding up to an annualized dividend of $8.00 a share. This corresponds to a dividend yield of 13.2% — a number that has grown an average of 23.5% per year in the last 10 years.
Icahn Enterprises currently trades at $60.61, 15% lower than the average target price of $70.00. Thus, it appears dividend investors have a powerful bargain available to them.
One caveat is that Icahn Enterprises is a master limited partnership (MLP) and issues a year-end K-1 form for tax purposes. That form requires extra work for an investor when filing annual tax returns.
7 High Dividend Stocks Yielding Over 13%, #3:
Antero Midstream (NYSE:AM)
Dividend Yield: 13.3%
Antero Midstream (NYSE:AM) owns and operates midstream energy infrastructure in the United States. The company obtains revenue from a variety of industry-specific sources, ranging from pipelines to fractionation plants and water treatment. Its client base is remarkably stable, operating almost entirely on long-term contracts.
The company has had a stellar year, returning 157.8% over the trailing 12 months. This sudden rebound from Antero’s low stock price last year was largely caused by a dramatic increase in earnings. Specifically, in Q4 2019, the company took a $144.6 million loss, but followed in Q4 2020 with a $76.5 million gain.
Antero Midstream has a current forward dividend yield of 13.3% and has consistently increased its payout over the long term, placing it in the 98th percentile of dividend payers in the Oil and Gas industry. The company maintained its quarterly dividend of $0.31 through the economic turmoil of 2020 and is likely to keep its distribution level for the near future. This $0.31 per share payout corresponds to an annual dividend of $1.24.
7 High Dividend Stocks Yielding Over 13%, #4:
OneMain Holdings (NYSE:OMF)
Dividend Yield: 14.1%
OneMain Holdings (NYSE:OMF) is a consumer finance company headquartered in Evansville, Indiana. It deals primarily in personal loan products and insurance but receives a substantial share of revenue from its acquisitions and strategic alliances. The company operates nationwide and its leading source of profit is net interest income.
OneMain has continued its long bull-run through 2020, returning an incredible 56.2% in the trailing 12-month period. This successful year follows several prior years when the stock had a three-year return of 129.6% and a five-year return of 185.4%.
The company’s most recent dividend distribution is $3.95 — its highest ever. It pays its dividend quarterly, but regularly includes a fifth dividend as a special dividend each year. With a forward yield of 14.1% and a strong start to 2021, OneMain seems to be on course for higher dividend payments in the year to come, and with them, massive profits for income investors.
OneMain is not only a strong dividend payer, but a high-performing company in its overall fundamentals. With a price-to-earnings over growth ratio (PEG) of 1.3, the company is in the 97th percentile of its industry for value, as well as the 98th percentile for dividends.
7 High Dividend Stocks Yielding Over 13%, #5:
DHT Holdings (NYSE:DHT)
Dividend Yield: 17.9%
DHT Holdings (NYSE:DHT) is a crude oil tanker company operating on an international scale with its primary business split between Norway, Singapore and Monaco. The company generates revenue off a fleet of carriers ranging in size from 200,000 to 320,000 deadweight tons.
The company’s return on invested capital (ROIC), a ratio used in finance, valuation and accounting to measure profitability and value-creating potential relative to capital invested by shareholders and debtholders, is an impressive 21.6%, beating the industry norm of 4.1% and the S&P 500 average of 15.4%.
Financial metrics this strong have allowed the company to pay out a remarkable dividend, with its annual distribution for 2020 totaling $1.35. This brings the trailing yield to 22.7%. With a forward yield of 17.9%, its dividend payments appear bound to stay high.
What makes these yield numbers more impressive is they have been deflated by robust share price growth. Shares of DHT Holdings grew 26% in the trailing 12-month period and 120% in the trailing three-year period. These high numbers mean the company’s dividend yield, while impressive, does not fully capture the payout strength of this efficient, undervalued company.
Based on the company’s fundamentals and financial strength, it is undervalued by at least 9%, according to Stock Rover. A price-to-earnings (P/E) ratio of 3.7 and forward price-over-earnings-to-growth (PEG) ratio of 5.7 for DTH Holdings are both in the 97th percentile for the Oil & Gas industry Group, placing it first in the rankings among a whopping 391 of its peers.
7 High Dividend Stocks Yielding Over 13%, #6:
Dividend Yield: 18.2%
Euronav (NYSE:EURN) is a maritime shipping company primarily moving crude oil and petroleum products across international borders. The company is split into two segments, tankers and FSO (floating storage and offloading). The tankers segment deals with crude oil transportation, where FSO moves similar products or stores them at sea.
The company had an annual return of 17.9% in the trailing 12 months and 40.1% in the trailing three years. Due to the volatility of the company — particularly as a shipping company in the COVID era — Euronav’s stock has fluctuated greatly over this time period, so a 50-day moving average line also was plotted to show the recent uptick and gradual improvement in share price.
Euronav’s dividend distribution is inconsistent but high. Where its most recent quarterly payment of $0.03 per share was a reduction, the annual distribution for 2020 was $1.66 per share — very large considering the EURN’s current stock price of $9.35. The company has a history of paying dividends ranging from under $0.10 to over $1.00 in a single quarter. Nevertheless, the current payout yields 18.2%, a number sure to satisfy savvy income investors.
7 High Dividend Stocks Yielding Over 13%, #7:
Dividend Yield: 26.9%
Frontline (NYSE:FRO) is the second shipping company on our list engaged in crude oil and oil products as a primary source of income. It operates in the Arabian Gulf, West African, the Caribbean and the North Sea, and its revenue is largely derived from charters as well as the purchase and sale of sea vessels.
The company’s recent uptick of nearly 20% brought Frontline positive returns for the trailing 12 months of 9.6% indicate a strong recovery from the downward momentum affecting the shipping industry spurred by COVID-19. Returns in the semi-long-term have been more favorable still, with a three-year return of 134%.
Frontline’s dividend yield of 26.9% is sure to turn heads, but rest assured, it is legitimate and still growing. The company has an average dividend growth in the last three years of 74.4% per year, and a similar average of 44.9% per year in the trailing five years that has led to the impressive number it is today.
The company’s most recent quarterly distribution of $0.50 corresponded to an annual dividend for 2020 of $1.60. Its dividend amounts tend to vary in the short-term, but the long-term growth of Frontline’s payout is more than satisfactory for any income investor.
Dividend increases and dividend decreases, new dividend announcements, dividend suspensions and other dividend changes occur daily. To make sure you don’t miss any important announcements, sign up for our E-mail Alerts. Let us do the hard work of gathering the data and sending the relevant information directly to your inbox.
In addition to E-mail Alerts, you will have access to our powerful dividend research tools. Take a quick video tour of the tools suite.
Jonathan Wolfgram is an editorial staffer who writes website content at Eagle Financial Publications. He graduated from the University of Minnesota with Bachelor’s degrees in Finance and Philosophy. Jonathan writes for www.DividendInvestor.com and www.StockInvestor.com.