In this article, we discuss 10 dividend stocks with over 10% yield. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read 5 Dividend Stocks with 10%+ Yield.
Dividend investing is gaining popularity on the back of increasing market volatility and investors' hunger for regular income. According to a report by CNBC, yearly dividend payouts of the S&P 500 companies have grown from $420 billion in 2017 to $483 billion in 2020. The dividend payments finally hit their all-time high of $561 billion last year, as reported by Wall Street Journal.
Dividend yields are an important aspect of dividend investment as it measures the income generated by an investment in the form of dividends. Additionally, as companies increase their dividends over time, the yield on the original investment may also increase, which makes high-dividend yield stocks valuable for long-term investors. That being said, analysts consider dividend yields between 2% to 6% healthy as high dividend yields can sometimes be a signal of risk. If a company offers an unusually high yield compared to its peers, it could indicate financial instability or other issues. For this reason, seasoned investors always carry out meticulous research and consider the respective company’s financials before investing.
Some industries, such as real estate investment trusts (REITs) and utilities, offer high yields to investors while maintaining strong dividend policies. This means that companies with strong dividend growth track records and high yields could be reliable options for investors. This conforms to the historical returns of high-dividend stocks. In our article titled 25 Things Every Dividend Investor Should Know, we mentioned the S&P Global’s data which revealed that the S&P High Yield Dividend Aristocrats outperformed the S&P Composite 1500 by a wide margin from December 1999 to June 2019. The S&P High Yield Dividend Aristocrats Index tracks the performance of companies with over 20 consecutive years of dividend growth.
In addition to dividend yield, dividend growth track record is also a key factor when it comes to gauging a company's dividend safety and reliability. Dividend increases are usually a reflection of a company's confidence in its future earnings prospects and cash flow generation. In this regard, companies like The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), and Exxon Mobil Corporation (NYSE:XOM) are favored by investors. These companies have decades-long dividend growth streaks and healthy dividend yields.
For this list, we selected dividend stocks with yields above 10%, as of May 16. Though the companies mentioned below have higher-than-average yields, they have been making regular dividend payments to shareholders. We also considered these companies' overall financial health, which signals the stability of their future dividends. The hedge fund sentiment was also measured using Insider Monkey's Q4 2022 database. The stocks are ranked in ascending order of their dividend yields, as of May 16.
Dividend Stocks with 10%+ Yield
10. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Dividend Yield as of May 16: 10.29%
Innovative Industrial Properties, Inc. (NYSE:IIPR) is a California-based real estate investment trust company that owns and manages specialized properties leased to cannabis facilities. In the first quarter of 2023, the company's fixed cash interest obligation stood at $4.2 million. It had over $37.6 million available in cash and cash equivalents at the end of March 2023.
On March 15, Innovative Industrial Properties, Inc. (NYSE:IIPR) declared a quarterly dividend of $1.80 per share, which was consistent with its previous dividend. The company has been growing its dividends consistently since 2017, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 10.29%, as of May 16.
Innovative Industrial Properties, Inc. (NYSE:IIPR) can be a good addition to dividend portfolios alongside some of the best dividend stocks like The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), and Exxon Mobil Corporation (NYSE:XOM).
In April, Piper Sandler maintained an Overweight rating on Innovative Industrial Properties, Inc. (NYSE:IIPR) with a $97 price target. The firm appreciated the company's portfolio.
As of the close of Q4 2022, 14 hedge funds tracked by Insider Monkey reported having stakes in Innovative Industrial Properties, Inc. (NYSE:IIPR), up from 12 in the previous quarter. The collective value of these stakes is nearly $300 million. Among these hedge funds, Zimmer Partners was the company's leading stakeholder in Q4.
Vitesse Energy, Inc. (NYSE:VTS), a spinoff entity of Jefferies Financial Group, develops non-operated oil and gas assets. In July 2022, Jefferies announced the separation of its Oil and Gas assets as an independent public company. On May 4, the company declared its second quarterly cash dividend of $0.50 per share, which was in line with its previous dividend. The stock has a dividend yield of 10.37%, as of May 16.
In the first quarter of 2023, Vitesse Energy, Inc. (NYSE:VTS) repurchased $0.2 million of its common shares and has also approved a share repurchase program for up to $60 million of its common stock. At the end of March 2023, the company had over $3,4 million in cash.
In May, Northland upgraded Vitesse Energy, Inc. (NYSE:VTS) to Outperform with a $23 price target, following the company's recent quarterly earnings. The firm also appreciated the stock's dividend yield.
Eagle Bancorp, Inc. (NASDAQ:EGBN) is a Maryland-based commercial banking company that also provides business and personal banking services to its consumers. In April, Piper Sandler maintained a Neutral rating on the stock with a $29 price target, expressing concerns about the company's funding pressures in its most recent quarter.
In the first quarter of 2023, Eagle Bancorp, Inc. (NASDAQ:EGBN) reported revenue of $75 million, which fell by 6.7% from the same period last year. The company's net income for the quarter came in at $24.2 million. It repurchased 400,000 of its common shares for over $18.3 million.
Eagle Bancorp, Inc. (NASDAQ:EGBN) initiated its dividend policy in 2019 and has paid regular dividends to shareholders since then. During this period, the company has also raised its payouts three times, which makes it one of the best dividend stocks on our list. It currently pays a quarterly dividend of $0.45 per share and has a dividend yield of 10.4%, as of May 16.
Telephone and Data Systems, Inc. (NYSE:TDS) is an American telecommunications company, based in Illinois. The company is a Dividend Champion with 48 years of consistent dividend growth. It currently pays a quarterly dividend of $0.185 per share and has a dividend yield of 10.40%, as of May 16. It is among the best dividend stocks on our list.
Telephone and Data Systems, Inc. (NYSE:TDS) generated $46 million in operating cash flow in the first quarter of 2023. The company had roughly $260 million available in cash and cash equivalents at the end of March 2023. During the quarter, it also paid $38 million in dividends to shareholders.
In February, Morgan Stanley maintained a Neutral rating on Telephone and Data Systems, Inc. (NYSE:TDS) with a $16 price target, highlighting the company's overall performance.
Telephone and Data Systems, Inc. (NYSE:TDS) ended the fourth quarter of 2022 with 20 hedge fund positions, up from 13 in the previous quarter, according to Insider Monkey's database. The collective value of stakes owned by these hedge funds stood at $67.8 million.
Pioneer Natural Resources Company (NYSE:PXD) is an American oil and natural gas exploration and production company. During the first quarter of 2023, the company generated $2.3 billion in operating cash flow and its free cash flow for the quarter came in at $950 million. It returned $1.3 billion to shareholders through dividends and share repurchases, which makes it one of the best dividend stocks on our list.
Pioneer Natural Resources Company (NYSE:PXD) currently pays a quarterly dividend of $3.34 per share and has a dividend yield of 11.41%. It can be added to dividend portfolios alongside The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), and Exxon Mobil Corporation (NYSE:XOM) because of its high dividend yield and shareholder obligation.
In May, Raymond James maintained a Strong Buy rating on Pioneer Natural Resources Company (NYSE:PXD) with a $268 price target. The firm appreciated the company's strong balance sheet, shareholder return program, and free cash flow generation.
At the end of Q4 2022, 55 hedge funds tracked by Insider Monkey were long Pioneer Natural Resources Company (NYSE:PXD), up from 49 in the previous quarter. The stakes owned by these hedge funds have a collective value of nearly $842 million.
TimesSquare Capital Management mentioned Pioneer Natural Resources Company (NYSE:PXD) in its Q4 2022 investor letter. Here is what the firm has to say:
“Better was the 8% surge from Pioneer Natural Resources Company (NYSE:PXD), an exploration and production company with operations in Texas. They reported a slight beat to production estimates with other metrics within their guidance range. The company continued with its aggressive capital return program inclusive of a sizable quarterly dividend and share repurchases. Management announced a shift to its drilling plans by focusing on acreage with higher expected returns.”