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Companies with Highest Dividend Yields
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Dividend stocks have outperformed almost everything else over the long haul, and probably will continue to do so. It's understandable, then, that they can be such an attractive investment.
Dividend stocks have outperformed everything else over the long haul, and probably will continue to do so. It’s understandable, then, that they can be such an attractive investment, so desirable.
And with American companies sitting on piles of cash, they’re sending that money right back to the shareholders. That steady stream of income is particularly attractive to retirees, who can count on the stock for income when they have no other incoming money. Plus, dividend-paying stocks tend to do better than non-dividend-paying stocks even in an economic downturn.
Bloomberg recently compiled a list of the companies with the highest dividend yields. While Dell has a 3% yield and Pfizer 3.7%, these 10 companies blow those yields out of the water. Bloomberg identified them by looking at companies with share prices of at least $1 and market capitalizations of at least $250 million. The list does not include investment instruments such as mutual funds or exchange-traded funds.
The vast majority of companies on this list are in the financial sector, specifically dealing with mortgages and real estate investments. Interestingly, enough, though since this list was put together by Bloomberg, all of the share prices of companies on this list have fallen.
The list is based on dividend yield on July 24, 2013. Yield was based on share price on that date and the last dividend or partnership distribution paid annualized.
10. PennyMac Mortgage Investment Trust
Ticker: PMT
Yield: 10.17%
Last dividend paid: $0.57
Share price, then: $22.41
Share price, now: $20.73
Sector: Financial
This stock was recently upgraded by Zacks from an underperform to a neutral rating. This specialty finance company invests primarily in residential mortgage loans and mortgage-related assets.
9. Natural Resource Partners
Ticker: NRP
Yield: 10.31%
Last dividend paid: $0.55
Share price, then: $21.34
Share price, now: $19.09
Sector: Basic materials
The company owns, manages and leases mineral properties in the United States. It owns coal reserves in Appalachia, the Illinois Basin and the Western U.S.
8. Rentech Nitrogen Partners
Ticker: RNF
Yield: 10.80%
Last dividend paid: $0.85
Share price, then: $31.47
Share price, now: $25.93
Sector: Basic materials
Los Angeles, Calif.-based, Rentech manufactures and sells nitrogen fertilizer product
7. Newcastle Investment
Ticker: NCT
Yield: 11.79%
Last dividend paid: $0.17
Share price, then: $5.77
Share price, now: $5.11
Sector: Financial
The real estate investment and finance company invests in and manages a portfolio of real estate securities, loans, excess mortgage servicing rights and real estate-related assets.
6. Chimera Investment
Ticker: CIM
Yield: 12.12%
Last dividend paid: $0.09
Share price, then: $2.97
Share price, now: $2.92
Sector: Financial
Also a real estate investment trust, Chimera invests in mortgage-backed securities, mortgage loans, real estate-related securities and other asset classes.
5. Resource Capital
Ticker: RSO
Yield: 12.36%
Last dividend paid: $0.20
Share price, then: $6.47
Share price, now: $5.42
Sector: Financial
A specialty finance company that purchases and manages a portfolio of commercial real estate-related assets and commercial finance assets.
4. Rhino Resource Partners
Ticker: RNO
Yield: 12.73%
Last dividend paid: $0.45
Share price, then: $13.98
Share price, now: $12.57
Sector: Basic materials
The company produces, processes and sells steam and metallurgical coal from surface and underground mines in the U.S.
Photo from nabors.com
3. Hugoton Royalty Trust
Ticker: HGT
Yield: 13.47%
Last dividend paid: $0.10
Share price, then: $9.21
Share price, now: $8.05
Sector: Basic materials
One thing of note: Hugoton pays its dividend monthly, while all the other companies pay quarterly.
2. Ellington Financial
Ticker: EFC
Yield: 13.5%
Last dividend paid: $0.77
Share price, then: $22.82
Share price, now: $22.12
Sector: Financial
A specialty financial company specializing in acquiring and managing mortgage-related assets.
1. Arlington Asset Investment
Ticker: AI
Yield: 13.51%
Last dividend paid: $0.88
Share price, then: $25.91
Share price, now: $22.89
Sector: Financial
The investment firm acquires mortgage-related and other assets.
