Top-5 Dividend Shares in December 2021
Today's rating is devoted to US companies whose stock offers a dividend yield of more than 11% per share. The market capitalisation of each company on the list is over $200 million.
This list features Sculptor Capital Management, Orchid Island Capital, Icahn Enterprises, Newtek Business Services, and USA Compression Partners.
1. Sculptor Capital Management
The company was called Och-Ziff Capital Management Group when founded in 1994. It became public on the NYSE in 2007; and in 2019, it changed its name to Sculptor Capital Management.
The company manages assets and offers its clients investment products in the crediting and real estate segments.
It has offices in New York, London, Hong Kong, and Shanghai. According to the information on its website, on 1 December 2021, Sculptor Capital Group was managing a total of $37.4 billion.
On 9 December 2021, the dividend yield of its shares was 18.05%. Since January 2021, the shares of Sculptor Capital Management, Inc. (NYSE: SCU) have grown 31.7%, from $15.2 to $20.02.
However, at the end of 2021, regardless of the growing dividend yield, Sculptor Capital Management shares keep falling. This stock correction in the market must be due to the withdrawal of assets by some of Sculptor Capital Management's investors given the approaching Christmas holidays.
2. Orchid Island Capital
The company was registered in 2010 and entered the exchange three years later. The main business of Orchid Island is investments of lent money in mortgage securities.
The profit of Orchid Island Capital consists of the difference between the profitability of its mortgages and the cost of its loans. In December 2021, the dividend yield of its shares is at 17.69%.
In its Q3 2021 financial report, Orchid Island Capital reported a 5% revenue decline to $31.28 million compared to the statistics of the same period last year, alongside a 53.5% decrease in the net EPS to $0.2.
Since the beginning of 2021, the share price of Orchid Island Capital, Inc. (NYSE: ORC) has fallen 16.3% from $5.22 to $4.37. This decline, regardless of the growing dividend yield, might be due to the decrease in revenue, which led to the deterioration of the company's investment business.
3. Icahn Enterprises
The story of this holding company begins in 1987. Icahn Enterprises is engaged in the following primary business segments: investment, energy, automotive, food packaging, real estate, home fashion, and pharma.
Icahn Enterprises uses an activist approach to investment. It attempts at capturing large amounts of a public company's stock, and then pressuring the company to make significant changes with the aim of increasing the stock's value.
On 9 December 2021, the dividend yield of Icahn Enterprises was 15.99%. Over nine months in 2021, the company has increased its revenue by 167.4% to $9.02 billion against the results of the same period in 2020. Over the same months, the net profit grew 111.5% to $326 million.
Since January 2021, the share price of Icahn Enterprises L.P. (NASDAQ: IEP) has lost a bit more than 1%, falling from %50.67 to $50. This stock correction is occurring in the market at the moment, but the increased profit may lead to the stock's growth in 2022.
4. Newtek Business Services
This company, founded in 1998, helps medium and small businesses to increase sales, decrease spending, and minimise risks. In addition, the company works with equity and debt investments.
Newtek Business Services is a provider of business solutions for enterprises in crediting, cloud services, online trading, website design and safety, domain sales and hosting, online payments, commercial and individual insurance, and HR & Payroll software.
On 9 December 2021, the dividend yield of the company was 14.15%. On 17 December 2021, following the announcement of the ex-dividend date, the shares of Newtek Business Services Corp. (NASDAQ: NEWT) dropped 9.02% to $27.22.
The shares of the company have seen a 38.3% growth from $19.69 to $27.22 over the course of 2021. However, the dividend payment of $1.05 per share resulted in the share price dropping.
5. USA Compression Partners
The company was registered in 1998, and in 2013 it entered the NYSE. USA Compression Partners is one of the largest independent providers of compression services in the oil and gas industry.
The company designs, uses, sells, and maintains powerful compression units for the supply of gas in domestic pipelines, and provides specialised compression applications that help produce crude oil.
In December 2021, the dividend yield of the company was 13.95%. In 2021, the share price of USA Compression Partners, LP (NYSE: USAC) has grown almost 8% from $13.6 to $14.67.
The stock market correction occurs as a result of the falling hydrocarbons prices in the global market. However, after the pullback is over, the stocks can recover.
Dividend shares protect from inflation
According to the US Department of Labor, annual inflation in the country has sped up to 6.8%, reaching its highest value since June 1982. This is owing to the surge in prices for energy carriers and commodities, increased consumer demand, and issues with production and supply.
There are several strategies for protecting your portfolio from inflation. One option is to buy shares of companies that pay significant dividends with the yield – at least not less than the inflation rate, and preferably higher.
The Top-5 American companies with a dividend yield of over 11% are Sculptor Capital Management, Orchid Island Capital, Icahn Enterprises, Newtek Business Services, and USA Compression Partners.