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High dividend stocks are stocks with a dividend yield well in excess of the market average dividend yield of ~1.3%.The resources in this report focus on truly high yielding securities, often with dividend yields multiples higher than the market average.We have created a spreadsheet of high dividend stocks (and closely related REITs and MLPs, etc.) with dividend yields of 5% or more.This article provides an overview of high dividend stocks, and includes a top 10 list of high dividend stocks that most income investors haven’t heard of.
High Dividend Stocks Overview
High dividend stocks are immediately appealing for income investors, due to their higher yields than the market average.Investing in high-yield stocks is a great way to generate income. But it is not without risks.First, stock prices fluctuate. Investors need to understand their risk tolerance before investing in high dividend stocks. Share price fluctuations means that your investment can (and almost certainly will) decline in value, at least temporarily (and possibly permanently) do to market volatility.Second, businesses grow and decline. Investing in a stock gives you fractional ownership in the underlying business. Some businesses grow over time. These businesses are likely to pay higher dividends over time.The Dividend Champions are an excellent example of this; each has paid rising dividends for 25+ consecutive years.What’s dangerous is when a business declines. Dividends are paid out of a company’s cash flows. If the business sees its cash flows decline, or worse is losing money, it may reduce or eliminate its dividend.Business decline is a significant risk with high yield investing. Business declines often coincide with and or accelerate during recessions.The following 10 high dividend stocks you’ve never heard of have current yields above 5%, positive expected returns over the next five years, and market caps below $8 billion which means they are small-caps or mid-caps.Business Development Companies (BDCs) and Master Limited Partnerships (MLPs) were excluded from the list below, as they have unique tax situations and risk factors to consider.
High Dividend Stock You’ve Never Heard Of: Hooker Furnishings Corporation (HOFT)
Hooker Furnishings is a designer, marketer and importer of casegoods (wooden and metal furniture), leather furniture, fabric-upholstered furniture, lighting, accessories and home décor for residential, hospitality and contract markets.The company also domestically manufactures premium residential custom leather and fabric-upholstered furniture.Hooker Furnishings is the largest supplier of casegoods and upholstery in the U.S. and has access to more than 75% of all retail furniture distribution.
Source: Investor PresentationIn early September, Hooker Furnishings reported (9/5/24) financial results for the second quarter of fiscal 2025 (the fiscal year of the company ends at the end of January 2025). Net sales dipped -3% over the prior year’s quarter due to sustained headwinds in the housing market.The combination of high interest rates and high home prices have been exerting pressure on the business of Home Furnishings over the last two years.As a result, the company switched from earnings-per-share of $0.07 to a loss per share of -$0.19 and missed the analysts’ consensus by $0.13. The company has missed the analysts’ estimates for 3 consecutive quarters.Click here to download our most recent Sure Analysis report on HOFT (preview of page 1 of 3 shown below):
High Dividend Stock You’ve Never Heard Of: First Bancorp Inc. (FNLC)
The First Bancorp, which is headquartered in Damariscotta, Maine, is the holding company for First National Bank, a full service community bank that was founded in 1864.First National Bank is a regional bank with 18 branches along Maine’s coast and 2 branches in the greater Bangor area. It provides a wide range of commercial and retail banking services; it has total assets of $3.1 billion.The First Bancorp benefits from the economic growth of Maine’s coastal counties and downtown Bangor.Due to the surge of interest rates to nearly 23-year highs, the net interest margin of The First Bancorp has pronouncedly contracted in recent quarters.In late October, The First Bancorp reported (10/23/24) financial results for the third quarter of fiscal 2024. Loans grew 3% and deposits grew 5% sequentially.Net interest margin expanded from 2.21% to 2.32%, as higher yields more than offset high deposit costs amid intense competition among banks.As a result, net interest income grew 8% and earnings-per-share grew 24%, from $0.55 to $0.68.Click here to download our most recent Sure Analysis report on FNLC (preview of page 1 of 3 shown below):
High Dividend Stock You’ve Never Heard Of: LCNB Corp. (LCNB)
LCNB Corp. is a Ohio-based financial holding company providing banking and insurance services through its subsidiaries, LCNB National Bank and Dakin Insurance Agency, Inc. The company reported $2.35 billion in total assets as of September 30th, 2024.LCNB National Bank offers consumer and commercial banking services, including checking and savings accounts, certificates of deposit, and loans for residential mortgages, commercial real estate, and personal needs.Dakin Insurance Agency provides personal and commercial insurance products and annuity services. LCNB also offers trust administration, estate settlement, and investment management services, as well as financial products like mutual funds, annuities, and life insurance.On October 21st, 2024, LCNB Corp. released its third-quarter results for the period ending September 30th, 2024. For the quarter, the company reported a net income of $4.5 million, or $0.31 per diluted share, compared to $4.1 million, or $0.37 per diluted share, in the same quarter last year.Click here to download our most recent Sure Analysis report on LCNB (preview of page 1 of 3 shown below):
High Dividend Stock You’ve Never Heard Of: Huntsman Corp. (HUN)
Huntsman Corporation manufactures and sells differentiated organic chemical products worldwide. It operates in four segments: Polyurethanes, Performance Products, Advanced Materials, and Textile Effects.The company’s products are utilized in various industries, in manufacturing anywhere from aerospace, automotive, and construction products, to packaging, coatings, and power generation.On November 4th, 2024, Huntsman released its Q3 and results for the period ending September 30th, 2024. For the quarter, revenues grew 2.3% year-over-year to $1.54 billion.Specifically, Polyurethanes saw a revenue increase of 4%. Performance Products and Advanced Materials revenues grew by 1% and declined by 3% respectively. Still, the weak total increase in revenues wasn’t enough to lift margins.On a per-share basis, this translates to adjusted income of $0.10 versus adjusted income of $0.15 in Q3 2023. This was despite buybacks notably lowering the per-share result.Click here to download our most recent Sure Analysis report on HUN (preview of page 1 of 3 shown below):
High Dividend Stock You’ve Never Heard Of: United Bancorp Inc. (UBCP)
United Bancorp a financial holding company based in the United States, operating primarily through its wholly-owned subsidiary, United Bank.The company offers a wide range of banking services including retail and commercial banking, mortgage lending, and investment services.Some of its other solutions include checking and savings accounts, personal and business loans, as well as wealth management.On August 22nd, 2024, United Bancorp raised its dividend by 1.4% to a quarterly rate of $0.1775. On a year-over-year basis, this was a 4.4% increase.On November 6th, 2024, United Bancorp posted its Q3 results for the period ending September 30th, 2024. The company reported total interest income of $9.94 million, which was up 3.0% year-over-year.This growth was primarily driven by a 13.9% rise in interest income on loans, despite a 32.9% decline in loan fee income and a 15.2% decrease in interest income from securities.However, total interest expenses increased by about 23.4%, leading to a 6.5% decline in net interest income, which fell to $6.1 million.Click here to download our most recent Sure Analysis report on UBCP (preview of page 1 of 3 shown below):
High Dividend Stock You’ve Never Heard Of: Carters Inc. (CRI)
Carter’s, Inc. is the largest branded retailer of apparel exclusively for babies and young children in North America. It was founded in 1865 by William Carter. The company owns the Carter’s and OshKosh B’gosh brands, two of the most known brands in the children’s apparel space.Carter’s acquired competitor OshKosh B’gosh for $312 million in 2005. Now, these brands are sold in leading department stores, national chains, and specialty retailers domestically and internationally.On October 26th, 2024, the company reported third-quarter results for Fiscal Year (FY)2024. The company reported a decline in third-quarter fiscal 2024 results, with net sales down 4.2% to $758 million compared to the previous year’s $792 million.
Source: Investor PresentationThe company’s operating margin decreased to 10.2% from 11.8%, attributed to higher investments in pricing and marketing, despite a lower cost of goods.Earnings per diluted share (EPS) dropped to $1.62 from $1.78, reflecting softer demand in key segments.Click here to download our most recent Sure Analysis report on CRI (preview of page 1 of 3 shown below):
High Dividend Stock You’ve Never Heard Of: Clearway Energy (CWEN)
Clearway Energy Inc is a large electric utility company which owns and operates contracted energy generation across two segments: conventional generation, and renewables. The company possesses approximately 11,700 net MW of assets.Clearway is a large owner of renewable energy with 9,000 MW of installed wind, solar and energy storage projects. Approximately 2,700 net MW of the company’s energy comes from dispatchable power generation. The power company trades on the NYSE under the ticker symbol CWEN. It is headquartered in Princeton, New Jersey.Clearway Energy’s controlling investor is Global Infrastructure Partners III (GIP), and Clearway Energy Group is the company’s portfolio business from which they invest in infrastructure and businesses in OECD and certain emerging market countries.Clearway Energy Group owns or has an interest in more than 10 gigawatts of wind, solar and energy storage assets, and an ongoing development pipeline across the U.S. The group’s large renewable power generation offsets over 10.5 million metric tons of carbon emissions.On October 31st, 2024, Clearway raised its quarterly dividend again by 2% to $0.4240 per share, or $1.696 per year. Clearway Energy reported third quarter 2024 results on October 31st, 2024. The company generated $354 million in adjusted EBITDA for the quarter, up 10% from $323 million in the prior year quarter.Click here to download our most recent Sure Analysis report on CWEN (preview of page 1 of 3 shown below):
High Dividend Stock You’ve Never Heard Of: Fortitude Gold (FTCO)
Fortitude Gold Corporation was spun-off from Gold Resource Corporation into a separate public company in December 2021. Fortitude Gold is a junior gold producer with operations in Nevada, U.S.A, one of the world’s premier mining-friendly jurisdictions.
The company targets high-grade gold open pit heap leach operations averaging one gram per tonne of gold or greater. Its property portfolio currently consists of 100% ownership in six high-grade gold properties.All six properties are within an approximate 30-mile radius of one another within the prolific Walker Lane Mineral Belt. The company generated $73.1 million in revenues last year, almost the majority of which were from gold, and is based in Colorado Springs, Colorado. It pays dividends on a monthly basis.On November 5th, 2024, Fortitude Gold released its Q3 results for the period ending September 30st, 2024. For the quarter, revenues came in at $10.2 million, 52% lower compared to last year.The decline in revenues was primarily due to a 62% drop in gold sales volume and a 54% decrease in silver sales volume. However, these reductions were partially offset by a 26% increase in gold prices and a 23% rise in silver prices.Click here to download our most recent Sure Analysis report on FTCO (preview of page 1 of 3 shown below):
High Dividend Stock You’ve Never Heard Of: Washington Bancorp (WASH)
Washington Trust Bancorp, Inc. operates as a holding company that has almost $7 billion in assets. The company provides banking services such as savings accounts, certificates of deposit and money market accounts.Washington Trust also offers loans for residential, commercial, consumer and construction customers as well as reverse mortgages.Lastly, the company also offers wealth management services, including asset management, financial planning and advisory services. Washington Trust has ~20 branches located in Rhode Island and one branch in Connecticut.On October 21st, 2024, Washington Trust reported third quarter earnings results for the period ending September 30th, 2024. For the quarter, revenue declined 0.9% to $48.53 million, but this was $0.66 million more than expected. GAAP earnings-per-share of $0.64 compared unfavorably to $0.65 in the prior year, but this was $0.08 ahead of estimates.Total loans decreased $100K sequentially to $5.5 billion. The company had a provision for credit losses of $200,000 compared to $500,000 in Q2 2024. Total deposits of $4.8 billion were up by 3% sequentially.Return on average equity and average assets were 8.99% and 0.60% compared to 9.43% and 0.60%, respectively, in the preceding quarter.Click here to download our most recent Sure Analysis report on WASH (preview of page 1 of 3 shown below):
High Dividend Stock You’ve Never Heard Of: Haverty Furniture Companies (HVT)
Haverty Furniture Companies was founded in 1885 in Atlanta, GA by J.J. Haverty. Since then, the company has grown to more than 120 stores in 16 U.S. states. Haverty is a specialized retailer of residential furniture and accessories.The company’s products are used throughout the home, including in living rooms, bedrooms, dining rooms, office, and outdoor spaces. The company generates annual revenue of more than $860 million.
Source: Investor PresentationOn November 1st, 2024, Haverty reported third quarter earnings results for the period ending September 30th, 2024. For the quarter, revenue decreased 20.2% to $175.9 million, which was $18.8 million less than expected. GAAP earnings per-share of $0.29 compared very unfavorably to $1.02 in the prior year and was $0.18 below estimates.Comparable sales for the period decreased 20.2%. Due to the year-over-year weakness, gross margins contracted 60 basis points to 60.2%. SG&A expenses decreased $11.8 million to $100.9 million, but represented 57.4% of total sales compared to 51.1% in the prior year due to the lower sales total.Haverty ended the period with $127.4 million in cash and equivalents. The company has no outstanding debt and credit availability of $80 million..Click here to download our most recent Sure Analysis report on HVT (preview of page 1 of 3 shown below):
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