5 High Yield Dividend Stocks Being Dumped by the Smart Money

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Includes: CMS, E, TAC, TEO, TU
by: Kapitall

The following is a list of high yield dividend stocks that have seen significant institutional selling over the last three months. To give more perspective on investor sentiment, we'll also include data on short float and performance. Is this excessive pessimism justified? If you're a contrarian interested in dividend income, these trends might raise a flag. Full analysis below.

Institutional data sourced from Reuters, short float data sourced from Finviz.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top five stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.



The list has been sorted by the change in institutional ownership over the last three months.

1. TransAlta Corp. (NYSE:TAC): Electric Utilities Industry. Market cap of $4.79B. Dividend yield at 5.27%. Institutional investors currently own 127,308,072 shares vs. 133,282,823 shares held three months ago (-4.48% change). Short float at 0.83%, which implies a short ratio of 46.41 days. The stock has gained 2.02% over the last year.

2. CMS Energy Corp. (NYSE:CMS): Diversified Utilities Industry. Market cap of $4.58B. Dividend yield at 4.48%. Institutional investors currently own 257,686,027 shares vs. 266,698,794 shares held three months ago (-3.38% change). Short float at 8.87%, which implies a short ratio of 5.52 days. The stock has gained 24.52% over the last year.

3. Telecom Argentina S A (NYSE:TEO): Diversified Communication Services Industry. Market cap of $5.11B. Dividend yield at 5.26%. Institutional investors currently own 16,837,538 shares vs. 17,025,493 shares held three months ago (-1.1% change). Short float at 0.46%, which implies a short ratio of 1.38 days. The stock has gained 0% over the last year.

4. TELUS Corporation (NYSE:TU): Wireless Communications Industry. Market cap of $14.24B. Dividend yield at 4.72%. Institutional investors currently own 108,223,962 shares vs. 108,812,769 shares held three months ago (-0.54% change). Short float at 0.03%, which implies a short ratio of 0.76 days. The stock has gained 47.26% over the last year.

5. Eni SpA (NYSE:E): Major Integrated Oil & Gas Industry. Market cap of $88.82B. Dividend yield at 5.76%. Institutional investors currently own 31,445,043 shares vs. 31,546,093 shares held three months ago (-0.32% change). Short float at 0.07%, which implies a short ratio of 1.45 days. The stock has lost -15.67% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.