Only 50 U.S. Stocks with a Market Capitalization over $100 Million Pay a Dividend Yield above 10% per Year.
But is it Sustainable?
We Select & Analyse In-depth the Best 15 Highest Dividend Payers
Note: Liberated Stock Trader is in no way affiliated, paid by, or owns any stock in any of the companies mentioned in this report. This is an unbiased research report.
Dividend stocks form a great addition to one’s portfolio. Good dividend or steady-income stocks as they are often called not only provide income every quarter but also allow investors to build a consistent stream of cash flows. Over the last 8 years, the S&P 500 total return owes over 40% appreciation to dividend earnings.
As a middle-income investor both capital appreciation and retirement benefits that come with dividend stocks are hard to miss. Investment baron Richard Russel has had an interesting take on dividend stocks and the charm has still not wavered.
A stock dividend is something tangible — it’s not an earnings projection; it’s something solid, in hand. A stock dividend is a true return on the investment. Everything else is hope and speculation. Richard Russell
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How to Find Great High Dividend Stocks?
Not all stocks or companies are created equally. As an income investor, you want the highest possible yield, but you also want a company with a good track record of payouts and profits that enable them to pay dividends in the future.
The lists of high dividend yielding stocks below are very detailed and I will highlight and define the key fields and ratios for clarity.
Dividend Yield – this is the expected dividend per share divided by the current price per share. As you can imagine the dividend yield you get depends on what price you purchased the stock for.
Dividends Paid – the total amount in dollars paid out for the year in dividends
Net Income – total profits after tax and expenses
Payout Ratio – here we calculate the payout ratio by dividing the total dividends paid by the Net Income. A payout ratio above 100% would indicate that a company cannot continue paying dividends at this level, because they are not earning enough profit to cover the dividend payment. So, it is generally a good rule of thumb to go for companies with a payout ratio under 100%. Those companies with a less than 100% payout ratio are highlighted in bold and are the focus of the deeper analysis.
Market Capitalization – when looking to invest long-term in a company, it is usually worth selecting a minimum company size. Capitalization is the value of all outstanding stock multiplied by the stock price. In this table, we selected $100 million as the minimum size of company we want to invest in.
YTD Performance % – This is the Stock Price Performance for the Year to Date. If you buy a stock and get a dividend of 10% but the stocks price falls 60% then you have made a huge loss. If the stock price performance goes up, you have made a double profit, from both price appreciation and dividend.
Debt to Equity Ratio (D/E Ratio) – this is the company’s total liability divided by total assets. This helps us understand if the company has enough assets to cover its debts. A number less than 1 is OK, some say closer to 0.4 is best for risk as the assets outweigh debts by 2.5 to 1. But in reality difference industries utilize different levels of leverage, for example, Real Estate Investment Trusts (REITS) usually have a D/E Ratio about 3 or 4, because all of their assets are purchased using commercial property mortgages. You can compare the D/E ratios for companies on the list within the same industry to get a feel for what is good and bad.
Operating Margin – here you can see is the company has a healthy margin between revenues and cost of operations. The higher the better here.
[Related Article: The Best Stock Screeners To Find Dividend & Value Stocks]
All Dividend Paying Stocks on U.S. Exchanges worth over $100 million in Market Capitalization and a dividend yield above 10% – Data Captured using our review winning TradingView Stock Screener. This is a large table so please use the sortable columns and search box to filter the list.
|Ticker||Industry||Dividend Yield % (FY)||Dividends Paid $ (FY)||Net Income $ (FY)||Payout Ratio||Market Capitalization||Total Revenue (FY)||Close Price Aug 2018||YTD Performance %||Dividends per Share (MRQ)||Dividends Expected Annual $||EPS Basic $ (FY)||Price to Earnings (TTM)||Debt to Equity Ratio (MRQ)||Operating Margin % (TTM)|
|HCLP||Specialty Mining & Metals||19.7||13,656,000||82,534,000||17%||1,396,596,000||602,623,000||15.25||42.5||0.200||1.38||0.97||9.8||0.24||20.8|
|JE||Natural Gas Utilities||10.0||65,870,430||388,892,200||17%||572,503,700||2,769,313,300||3.81||-11.2||0.095||0.38||3.46||1.8||2.35||3.2|
|DKL||Oil & Gas Transportation Services||10.7||25,978,000||69,409,000||37%||720,324,000||538,075,000||28.7||-9.5||0.725||3.12||2.09||12.8||16.8|
|FDUS||Closed End Funds||10.9||36,793,000||43,951,000||84%||353,247,400||68,615,000||14.36||-5.4||0.390||1.57||1.87||7.0||0.66||47.5|
|SCM||Closed End Funds||10.2||20,323,310||22,613,260||90%||213,462,000||39,648,190||13.32||1.4||0.340||1.36||1.52||8.8||1.13||45.0|
|OXSQ||Closed End Funds||10.9||41,183,530||43,609,670||94%||370,285,600||61,417,020||7.31||27.4||0.200||0.80||0.85||9.4||0.21||48.8|
|CTL||Integrated Telecommunications Services||11.8||1,453,000,000||1,389,000,000||105%||19,839,980,000||17,656,000,000||18.37||10.1||0.540||2.16||0.46||56.0||1.59||11.0|
|GLP||Oil & Gas Refining and Marketing||10.5||62,660,000||58,752,000||107%||603,421,300||8,920,552,000||18.15||8.7||0.463||1.85||1.08||8.5||2.78||1.6|
|OXLC||Closed End Funds||14.7||41,516,720||38,005,590||109%||267,742,600||74,815,770||11.04||9.9||0.805||1.62||1.32||9.0||0.52||53.9|
|GMLP||Oil & Gas Transportation Services||14.5||161,060,000||129,280,000||125%||1,160,687,000||433,102,000||15.88||-30.4||0.578||2.31||1.82||9.5||1.89||51.1|
|PSEC||Closed End Funds||10.3||333,623,000||252,906,000||132%||2,510,165,000||701,046,000||6.98||3.6||0.180||0.78||0.70||10.6||0.71||41.3|
|CPLP||Marine Freight & Logistics||10.2||51,630,000||38,483,000||134%||443,126,900||249,115,000||3.15||-6.3||0.080||0.33||0.22||19.6||0.51||22.6|
|HRZN||Closed End Funds||11.3||13,646,000||9,591,000||142%||121,706,200||23,071,000||10.61||-5.4||0.300||1.20||0.83||14.3||0.70||37.9|
|BPL||Oil & Gas Transportation Services||15.1||714,495,000||478,802,000||149%||5,023,755,000||3,648,145,000||33.45||-32.5||1.263||5.05||3.36||10.4||0.98||17.6|
|AINV||Closed End Funds||10.1||131,502,000||87,029,000||151%||1,279,285,000||259,286,990||5.95||5.1||0.150||0.60||0.40||15.0||0.56||49.2|
|SRLP||Oil & Gas Refining and Marketing||10.7||57,472,000||29,497,000||195%||573,863,900||2,854,996,000||25||3.3||0.638||2.70||1.15||16.5||3.96||2.4|
|LMRK||Real Estate Services||10.6||38,711,000||19,257,000||201%||350,077,600||52,625,000||13.9||-23.2||0.368||1.49||0.53||22.9||2.02||60.5|
|SMLP||Oil & Gas Transportation Services||13.5||181,478,000||85,687,000||212%||1,283,622,000||488,741,000||17.05||-16.8||0.575||2.30||1.04||19.2||0.82||-10.7|
|MRCC||Corporate Financial Services||10.4||26,524,000||12,152,000||218%||275,870,600||51,107,000||13.43||-2.3||0.350||1.40||0.65||24.4||0.86||52.6|
|BKCC||Closed End Funds||12.0||51,137,930||20,902,460||245%||431,169,400||97,329,210||6||-3.7||0.180||0.72||0.29||132.3||0.56||54.5|
|GARS||Investment Management & Fund Operators||13.4||17,977,000||6,227,000||289%||134,814,600||36,620,000||8.36||3.1||0.280||1.08||0.39||11.0||1.27||47.4|
|EEP||Oil & Gas Transportation Services||12.9||962,000,000||282,000,000||341%||3,614,544,000||2,428,000,000||10.88||-21.2||0.350||1.33||0.73||16.0||4.31||45.1|
|DLNG||Oil & Gas Transportation Services||12.9||66,857,000||17,339,000||386%||403,074,000||138,990,000||7.78||-28.4||0.423||1.17||0.50||29.8||2.33||44.0|
|GME||Computer & Electronics Retailers||10.2||155,200,000||34,700,000||447%||1,508,708,000||9,224,600,000||14.83||-17.4||0.380||1.52||0.76||32.9||0.37||1.0|
|MMLP||Marine Freight & Logistics||15.2||76,938,000||17,135,000||449%||525,252,600||946,116,000||13.15||-6.1||0.500||2.00||0.44||64.5||3.14||5.5|
|KCAP||Closed End Funds||12.0||17,411,480||3,388,080||514%||123,321,900||28,263,700||3.33||-2.3||0.100||0.39||0.09||22.3||0.55||21.9|
|SPH||Oil & Gas Refining and Marketing||10.1||216,576,000||37,995,000||570%||1,455,922,000||1,187,886,000||23.8||-1.7||0.600||2.40||0.62||23.5||2.04||10.6|
|Ticker||Industry||Dividend Yield % (FY)||Payout Ratio||YTD Performance %||Debt to Equity Ratio (MRQ)||Operating Margin % (TTM)|
|HCLP||Specialty Mining & Metals||19.7||17%||42.5||0.24||20.8|
|JE||Natural Gas Utilities||10.0||17%||-11.2||2.35||3.2|
|DKL||Oil & Gas Transportation Services||10.7||37%||-9.5||16.8|
|FDUS||Closed End Funds||10.9||84%||-5.4||0.66||47.5|
|SCM||Closed End Funds||10.2||90%||1.4||1.13||45.0|
Analysis of the Top 15 Best Dividend Paying Companies.
Hi-Crush Partners LP (NYSE: HCLP) Dividend Analysis
Specialty Mining & Metals
Dividend Yield: 19.67%
Payout Ratio: 16.5%
Stock for HCLP, in the Specialty Mining & Metal sector, moved -0.77% last trading session taking the price to $12.95. Investors looking for high dividend yielding stocks may consider HCLP which has maintained a yield of 19.67% over the past few months. The stock is loaded with opportunities as both capital appreciation and dividends income are profitable. The company with a market cap of $1.4 billion and an operating margin (TTM) of 20.78% seems bankable. It is the highest yielding stock in the list and one with the lowest payout ration with is a good mix.
Just Energy Group, Inc. (NYSE: JE) Dividend Analysis
Natural Gas Utilities
Dividend Yield: 10.04%
Payout Ratio: 16.9%
Q1 earnings and a drop in its share price to $3.57 may not sound appealing but it has long rallied as a dividend stock yielding 10.04%. Though management in their recent Earning’s Call assured investors of regained momentum after implementing growth strategies to improve their customer base some risk remains. As an energy company with a market capitalization of $0.57 billion and more than $65.9 million paid as dividends, the company surpassed expectations.
Delek Logistics Partners (NYSE: DKL) Dividend Analysis
Oil & Gas Transportation Services
Dividend Yield: 10.73%
Payout Ratio: 37.4%
Oil & Gas Logistics firm DKL with a dividend yield of 10.73% and a market cap of $0.72 billion allures largely to investors. The company has maintained record revenue and profit growth in Q1 2018 and the same is anticipated for Q2 earnings. Management is expected to continue with a 10% distribution hike following Q1 2019 as earnings improve meeting expectations. Due to a cyclical nature, the energy sector may witness a downfall in growth but due to its regional strength earnings will be stable.
Following demand, capacity expansions by both upstream and downstream refineries are underway, so the logistics firm will maintain a positive growth in coming quarters.
DKL with a payout ratio of 37.4% and a yield of 10.7% not only reflects the commitment of the management to yield good investment results but also assure consistency. The company has not only tried maintaining a large growth in distribution with its Q2 results but has improved on leveraging sound distribution coverage ratios after a host of asset acquisitions. The firm remains aloof to uncertainties cropping out of small refiners as a majority of its revenue is driven by 3rd party entities.
Cherry Hill Mortgage Investment (NYSE: CHMI) Dividend Analysis
Dividend Yield: 10.75%
Payout Ratio: 51.1%
CHMI with a dividend yield of 10.75% remains invested in mortgage-based securities (MBS) and excess mortgage servicing rights (MSR) is worth the risk because of its upside returns. The stock price showcased a high of $17.99 in its recent trading session and is poised to grow in the coming quarters just ahead of its earnings release for Q2. A market cap of $0.23 billion and a dividend of $0.49 per share must be closely analyzed for a rebound.
CHMI is a striking example of a good dividend stock has a payout of 51.1% and a dividend yield of 10.75%. The management is known to showcase some aggressive strategies for its MSR portfolio and leveraging income on current dividend levels. The company is preparing a contingency for any potentially robust rate hikes this year by being well diversified under both MSR and its RMBS (Residential-mortgage backed securities) portfolios.
MTGE Investment (NASDAQ: MTGE) Dividend Analysis
Dividend Yield: 10.08%
Payout Ratio: 52.4%
MTGE with an annual dividend of $2 per share and a yield of 10.08% invests in a highly leveraged portfolio of real estate. With a P/E multiple of 9.4x, the stock seems attractive under an industry average of 17.29x, but is still categorized as a growth stock with an ROE of 17.13% in 2017. A dip might be witnessed by the stock after the announcement by Annaly Capital Management to buy MTGE was made in mid-April but things are expected to improve subsequently following strong fundamentals.
MTGE awaits a regulatory approval after Annaly Capital Management extended an offer. This allows investors to witness choices between receiving either mixed or cash options for their shares. The company has been operating under greater levels of interest rate risk protection reaping favorable valuations for stocks over the last few quarters.
AG Mortgage Investment Trust (NYSE: MITT) Dividend Analysis
Dividend Yield: 10.37%
Payout Ratio: 58.4%
MITT is regarded as a high-yield, high-risk mortgage stock, pertaining to a thin dividend safety net, making analysts willing to enhance coverage. A dividend yield of 10.37% closing at $18.85 in the last trading session and the annual dividend was $1.92 per share.
Core earnings for MITT for the quarter were $0.55 per share owing to an increase in the 3-month LIBOR as part of their swap hedging contracts. The stock is exposed to the rate hikes this year but in July the book value increased more than 2% due to value-enhancement in their credit portfolio supported by strong fundamentals in RMBS (Residential Mortgage Backed Securities). The REIT stock with a payout of 58.4% and a dividend growth of 1.83% is worth tracking for a robust risk-reward profile
Specialized REIT’s were the worst hit-off after the rate hike but for a stock with a payout of close to 60% and a yield of 11.25, the story seems different.
New Residential Investment (NYSE: NRZ) Dividend Analysis
Dividend Yield: 11.25%
Payout Ratio: 59.6%
NRZ which closed at $18.08 on Friday is still considered under-valued by most analysts even with a yield of 11.25%. The mortgage REIT (mREIT) still runs its dividends on high levels taking the annual number to $1.99 on a per share basis. The company paid an amount of $570 million last fiscal as dividends teamed up with a significant stock price appreciation. In July 2018, Q2 Earnings surpassed expectations of management and analyst alike. Following which the stock pulled out $0.59 per share in earnings and $0.48 per share as its average dividend rate. Net Investment of the firm lies in MSRs, Residential Securities, Residential Loans and Consumer Loans.
NRZ has surpassed its own dividend growth rate of 5-years at levels crossing 200% and a TTM growth of 5.26%. While net income for the company increased by 89.8% in 2017, operating income almost doubled following liquidity enhancement measures after acquiring MSR rights for $20 billion were undertaken. The stock on multiple parameters fairs well, especially on its dividend growth.
Invesco Mortgage Capital Inc. (NYSE: IVR) Dividend Analysis
Dividend Yield: 10.39%
Payout Ratio: 61%
IVR rallied as a stable investment which suggests that the mREIT stock has improved after hitting the $16.14 mark. The firm exposes its investors to a dividend yield of 10.39% and paid an amount of $212.7 million in dividends last fiscal. Following an interest rate rise companies in the sector have maintained a volatile disposition. Factoring competitive positioning and decent Q1 earnings it is expected to regain momentum supported by safety margins of $0.42 in dividends.
IVR raises the bar to 61% with a YOY growth of 4.38% in its dividend payments. Analysts who fear a bearish outlook last season due to palpable interest rate risk are full of praise for the stock after the price hit $16.86.
Western Asset Mortgage Capital Corporation (NYSE: WMC) Dividend Analysis
Dividend Yield: 11.49%
Payout Ratio: 61%
WMC with an AUM of $400 billion is often termed as the best-in-class for its risk management abilities. The share appreciated to $10.64 with an EPS of $0.34 at current levels. Dividend yield for the stock stands at 11.49% with a market cap of $451 million and a forward annual payout of $1.24 calling for a decent investment. On a 5-year basis, the dividends have grown by 6.15% followed by a stock appreciation of more than 10% over the last year.
Following the lead of other companies whose management paid heed to investors and covered lost dividends over the past 5 years, WMC came out with a payout ratio of 61.1%. Counted as a controversial mREIT the stock’s performance dwindled in the past to be regained by its management with utmost zeal and consideration. For more than 18 months the book value seems improved and investors can count on their chances to bet on a good investment here.
CM Finance (NASDAQ: CMFN) Dividend Analysis
Dividend Yield: 11.30%
Payout Ratio: 75.4%
CM Finance in June this year started offering unsecured notes due 2023 to repay the debt which did strengthen its stock position. Analyst projected a strike of 30% in net gains for the stock based on dividend estimates and medium-term targets. The dividend yield stands at 11.30% with an EPS of 1.72% and a beta showcasing the stock to be 19% more volatile compared with the industry average. The firm declared a quarterly dividend of $0.25 per share in June and is forecasted to deliver an annual dividend of $1 per share.
CMFN has a high payout ratio of 75.4% and a yield of 11.30%. As a firm with fairly a high payout ratio assessing the same in isolation may seem like a good idea and marks for a defensive strategy based on its current portfolio projects and other major highlights.
CM Finance started offering unsecured notes under an existing revolving facility to repay its debt due 2023. The Net Interest Income (NII) for the company came down to $0.27 per share beating previous estimates of $0.02 with a total investment income hike of 22.5% on a YOY basis of $8.67 Million.
Chimera Investment Corporation (NYSE: CIM) Dividend Analysis
Dividend Yield: 10.58%
Payout Ratio: 78.5%
With interest rates rising and hampering growth in mortgage REIT stocks, CIM is one stock which has struck its ground. Not only does the stock leverage at a premium valuation from analysts it also out-performed its dividend estimates over the past few years. In Q2, net income for Chimera was positive with a hint of pressure due to interest expense still lingering on the stock. Its net interest income was up 10% followed by a decline in core earnings to the current $0.58 from $0.59. Prone to volatility surrounding the market, Chimera supports a dividend yield of 10.58% with a well-diversified stock listing at a premium. Though a stable book-value investor might find stable levels to enter.
Most investments in dividend stocks rely on a solid dividend payment and this mREIT stock represents that ideology quite firmly with a ratio of 78.5%. Recent income results exhibit a promising earnings coverage invariably out-running dividend expectations. The stock in terms of its valuation is trading at a premium due to strong underlying fundamentals and thus greater potential is foreseen.
Alliance Resource Partners (NASDAQ: ARLP) Dividend Analysis
Dividend Yield: 10.84%
Payout Ratio: 61%
The stock price touched a comfortable position at $19.90 in the last trading session. Alliance Resource currently offers a dividend yield of 10.84% and continues to keep its long-term dividend philosophy clear. The company has been operating in the difficult coal mining industry but strong fundamentals have kept the stock on analyst radars for a while.
With a distribution coverage ratio of 1.8x, the company is counted as a potential outperformer on various fronts. On the contrary, political regulations on the industry might pose some volatility in the long-run.
The company’s dividends have been growing by 16% at TTM levels and strategies supported by both its marketing and operational teams make sure that the company beats investor expectations every quarter. After recent Q2 earnings the management has claimed to be sold out on its planned production for 2018 and has additionally stepped up and increased export sales by a good 27% gaining new orders. With a payout of close to 80% at 79.3% and a yield of 10.84, the stock is hard to miss with great earnings support and outstanding growth in dividends.
Fidus Investments (NASDAQ: FDUS)
Closed End Funds
Dividend Yield: 10.86%
Payout Ratio: 83.7%
With a yield of 10.86%, Fidus management is known for increasing its Net Asset Value (NAV) per the share supporting expectation of a 36% potential of the stock appreciating over the next few quarters. The company is extremely well-managed and is currently trading at a price of $14.89 with a 12.7% discount to its NAV. Fidus is one of the very few Business Development Companies (BDC) with a consistent growth injected due to special dividends. Following recent insider purchases and rising interest rates, the stock is expected to increase further.
Annaly Capital Management (NYSE: NLY) Dividend Analysis
Dividend Yield: 11.34%
Payout Ratio: 86.2%
With a close look at its core earnings and net interest income NLY is a safe bet following its dividend coverage. Starting in 2018, the stock’s momentum is not that volatile and earnings are range-bound with the management taking caution against rate hikes and providing an opportunity for long-term growth. Estimates assess performance for this quarter marking dividends to remain safe with a stable book-value coupled with risk. Management curates diverse strategies to work on hedges and portfolio activity ensuring robustness.
Stellus Capital Investment Corporation (NYSE: SCM) Dividend Analysis
Closed End Funds
Dividend Yield: 10.21%
Payout Ratio: 89.9%
The baby bond started trading in the August of 2017 and in the last 12 months the company paid $20.3 million as dividends with a yield of 10.21%. The stock seems nearing its 52-week high of $14.29 at current $13.55 levels. Dividend expectations for the year revolve to the tune of $1.36 per share with the recent announcement of $0.339 per share made last quarter.
There are of course companies on the list that have very high dividend yields and payouts, but when the payout ratio is higher than 100% it becomes unsustainable over the longer term.
|Ticker||Industry||Dividend Yield % (FY)||Payout Ratio|
|HCLP||Specialty Mining & Metals||19.7||17%|
|MMLP||Marine Freight & Logistics||15.2||449%|
|BPL||Oil & Gas Transportation Services||15.1||149%|
|OXLC||Closed End Funds||14.7||109%|
|GMLP||Oil & Gas Transportation Services||14.5||125%|
|SMLP||Oil & Gas Transportation Services||13.5||212%|
|GARS||Investment Management & Fund Operators||13.4||289%|
Download the Full Excel Spreadsheet of Top Dividend Paying Stocks
If you are looking for alternative dividend stocks, check out our Best Real Estate Investment Trusts Paying Monthly Dividends, or our Top Monthly Dividend Stocks.
If you are looking for the highest income read our Highest Paying Dividends Special Report.