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Analyst recommendations aren’t always correct but they can help thin the herd. When an analyst rates a stock as ‘buy or better’ it usually means that the company is undervalued or has expectations that are high but attainable. Add dividends to this mix, and the potential for upside is incredible. Institutional ownership can also point to a good investment.

Using the stock screener at Finviz, we came up with a list of seven U.S. stocks that analysts have rated buy or better, with market caps over $2 billion and dividend yields over 10 percent.

American Capital Agency Corp. (NASDAQ:AGNC) is a residential real-estate investment trust (REIT) with a $5.20 billion market cap. AGNC pays a whopping 19.77% dividend yield and features institutional ownership of 37.84%. The company has a 0.45 beta and carries analyst recommendations of 2.1 on a scale in which 1.0 means ‘Strong Buy’ and 5.0 indicates ‘Strong Sell.’ AGNC recently traded at $28.33. Brian Jackelow’s SAB Capital Management had $110.09 million in AGNC at the end of September after increasing its position in AGNC by 17% during the third quarter. John Griffin’s Blue Ridge Capital is also a fan of the company.

Eaton Vance Tax-Managed Global (NYSE:EXG) is a closed-end fund with a $2.57 billion market cap. EXG pays a high 13.54% dividend yield and boasts institutional ownership of 11.61%. The company has a 0.94 beta and carries analyst recommendations of 1.0 on a scale in which 1.0 means ‘Strong Buy’ and 5.0 indicates ‘Sell’. EXG recently traded at $8.40. Cliff Asness’ AQR Capital Management had $3.59 million in EXG at the end of September after increasing its position by +906% during the third quarter. Jacob Gottlieb’s Visium Asset Management is also a fan.

Hatteras Financial Corp. (NYSE:HTS) is a residential real-estate investment trust with a $2.04 billion market cap. HTS pays an impressive 13.53% dividend yield and has institutional ownership of 58.31%. The company has a 0.26 beta and carries analyst recommendations of 2.4. HTS recently traded at $26.60. Charles Clough’s Clough Capital Partners had $39.49 million in the company at the end of the third quarter. HTS is also a favorite pick for Amy Minella’s Cardinal Capital.

MFA Financial, Inc. (NYSE:MFA) is a diversified real-estate investment trust with a $2.40 billion market cap. MFA pays a strong 14.86% dividend yield and boasts institutional ownership of 83.49%. The company has a 0.32 beta and carries analyst recommendations of 2.2. MFA recently traded at $6.73. Brian Taylor’s Pine River Capital Management, Chuck Royce’s Royce & Associates and Stuart Peterson’s Artis Capital Management are fans of the MFA.

Annaly Capital Management, Inc. (NYSE:NLY) is a diversified real-estate investment trust with a $15.63 billion market cap. NLY pays a high 14.15% dividend yield and features institutional ownership of 48.15%. The company has a 0.30 beta and carries analyst recommendations of 2.3’. NLY recently traded at $16.11. Bill Miller’s Legg Mason Capital Management upped its stake in the company by +91% during the third quarter, leaving a stake worth $116.86 million or 1.56% of its portfolio. Michael Lowenstein’s Kensico Capital also likes NLY.

Inergy, LP (NRGY) is a gas utilities company with a $3.20 billion market cap. NRGY has a 11.56% dividend yield and has institutional ownership of 35.68%. The company has a 0.63 beta and carries analyst recommendations of 2.0. NRGY recently traded at $24.40. Jim Simons’ Renaissance Technologies initiated a new $8.73 million position in NRGY during the third quarter. NRGY was also a top pick for Jean-Marie Eveillard’s First Eagle Investment Management.

Och-Ziff Capital Management Group, LLC (NYSE:OZM) is an asset management company with a $3.05 billion market cap. OZM has a decent 12.81% dividend yield and features institutional ownership of 32.40%. The company has a 1.99 beta and carries analyst recommendations of 1.8. OZM recently traded at $8.35. Jonathon Jacobson’s Highfields Capital Management, Jim Simons’ Renaissance Technologies and D.E. Shaw’s D E Shaw were fans of OZM at the end of the third quarter.



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

Source: 7 Analyst 'Buys' With Ultra High Dividends