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Defensive investors like stocks with sustainable high dividend yields even in bear markets because by investing in such stocks, investors are more likely to achieve sustainable returns and protect themselves from potential inflationary risks. Although stocks with high-quality dividends are appealing to defensive investors, some of them did not perform well recently.

Below we compiled a list of safe dividend stocks now on sale. All companies have at least $2 billion market cap, dividend yields of over 3%, EPS growth rate higher than 10% per year over the past five years and lost at least 20% over the past month.

Ticker

Company

Dividend Yield

Month Return

EPS growth

FCX

Freeport-McMoRan

3.28%

-35.36%

14.35%

BAK

Braskem S.A.

6.58%

-34.34%

12.84%

ACI

Arch Coal Inc.

3.02%

-28.21%

41.17%

YZC

Yanzhou Coal Mining Co.

4.26%

-27.39%

26.36%

TSU

TIM Participacoes S.A.

5.33%

-24.34%

68.52%

BTM

Brasil Telecom S.A.

3.16%

-23.12%

60.72%

GEF

Greif, Inc.

3.92%

-22.55%

14.58%

TNH

Terra Nitrogen Company

7.86%

-21.23%

22.13%

SID

Companhia Siderurgica Nacional

8.02%

-21.00%

18.77%

BHP

BHP Billiton Ltd.

3.04%

-20.91%

19.90%

BBL

BHP Billiton Plc

3.81%

-20.72%

19.90%

Freeport-McMoRan Copper & Gold Inc. is a copper, gold and molybdenum mining company. FCX has a dividend yield of 3.28% and its EPS growth rate is 14.35% per year over the past five years. It has a market cap of $28.9B, a P/E ratio of 5.2, and lost 35.36% over the past month. Ken Fisher invested over $400 million in FCX, but he reduced his position by 41% over the second quarter.

Braskem S.A. is a producer of thermoplastic resins worldwide. BAK has a dividend yield of 6.58% and its EPS growth rate is 12.84% per year over the past five years. It has a market cap of $6.3B, a P/E ratio of 8.78, and lost 34.34% over the past month. BAK was not popular among the 300+ hedge funds we are tracking. Jim Simons was the biggest holder of the stock and he only had 0.06% of his portfolio invested in BAK.

Arch Coal Inc. is a coal producer company. ACI has a dividend yield of 3.02% and its EPS growth rate is 41.17% per year over the past five years. It has a market cap of $3.1B, a P/E ratio of 14.88, and lost 28.21% over the past month. Richard Chilton had $66 million invested in ACI.

Yanzhou Coal Mining Co. Ltd. is principally engaged in coal mining, washing, processing, distribution and coal railway transportation. YZC has a dividend yield of 4.26% and its EPS growth rate is 26.36% per year over the past five years. It has a market cap of $10.4B, a P/E ratio of 5.66, and lost 27.39% over the past month. Jim Simons was the biggest holder of the stock. He invested only $1.7 million in YZC and reduced his position by 83% over the second quarter.

TIM Participacoes S.A. is a Brazil-based holding company engaged in the telecommunications segment. TSU has a dividend yield of 5.33% and its EPS growth rate is 68.52% per year over the past five years. It has a market cap of $5.8B, a P/E ratio of 8.35, and lost 24.34% over the past month. Lee Hobson had $20 million of TSU shares at the end of June and he reduced his position by 47% during the second quarter.

Brasil Telecom S.A. is a telecommunication service provider in Brazil. BTM has a dividend yield of 3.16% and its EPS growth rate is 60.72% per year over the past five years. It has a market cap of $3.5B and lost 23.12% over the past month. Jim Simons invested $37 million in BTM stocks.

Greif, Inc. is a producer of industrial packaging products and services with manufacturing facilities located in over 50 countries. GEF has a dividend yield of 3.92% and its EPS growth rate is 14.58% per year over the past five years. It has a market cap of $2.0B, a P/E ratio of 8.77, and lost 22.55% over the past month. Chuck Royce had $69 million of GEF shares at the end of June but he reduced his position by 2% over the second quarter.

Terra Nitrogen Company, L.P. produces nitrogen fertilizer products. TNH has a dividend yield of 7.86% and its EPS growth rate is 22.13% per year over the past five years. It has a market cap of $2.7B, a P/E ratio of 12.49, and lost 21.23% over the past month. TNH was not very popular among the 300+ hedge funds we are tracking. The biggest position was held by Jim Simons, who just invested $3.4 million in the stock.

Companhia Siderurgica Nacional is an integrated steel producer in Brazil and Latin America. SID has a dividend yield of 8.02% and its EPS growth rate is 18.77% per year over the past five years. It has a market cap of $11.6B, a P/E ratio of 24.81, and lost 21% over the past month. Howard Marks decreased his position in SID by 20% during the second quarter.

BHP Billiton Ltd. is a diversified natural resources company. BHP has a dividend yield of 3.04% and its EPS growth rate is 19.90% per year over the past five years. It has a market cap of $177B, a P/E ratio of 7.77, and lost 20.91% over the past month. Jeffrey Vinik decreased his BHP position by 32% over the second quarter.

Source: 11 Cheap Safe Dividend Stocks Now On Sale