Contrarian Ideas: 10 High-Yield Dividend Stocks Being Dumped by Smart Money

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Includes: D, DTE, E, ETR, MAC, NOK, PBCT, PBI, PCL, PT
by: Kapitall

If you're interested in dividend investing, the following list might offer an interesting starting point.

The following is a list of stocks with dividend yields above 4% that have seen net institutional selling and net mutual fund selling over the last two quarters.

If you're a contrarian investor, this excessive pessimism might raise a flag.

Institutional and mutual fund data sourced from Fidelity, all other data sourced from Finviz.

click for expanded image

List sorted by dividend yield.

1. Nokia Corporation (NYSE:NOK): Communication Equipment Industry. Market cap of $31.91B. Net institutional shares sold during current quarter at 101.9M vs. 75.2M net shares sold during previous quarter. Net mutual fund shares sold during current quarter at 10.4M vs. 8.0M net shares sold during the previous quarter. Dividend yield at 6.49%.

2. Portugal Telecom SGPS SA (NYSE:PT): Wireless Communications Industry. Market cap of $10.28B. Dividend yield at 6.16%. Net institutional shares sold during current quarter at 1.3M vs. 3.4M net shares sold during previous quarter. Net mutual fund shares sold during current quarter at 80.8K vs. 2.9M net shares sold during the previous quarter. Note that PT has a relatively low correlation to the market (beta = 0.69), which may be appealing to risk-averse investors.

3. Pitney Bowes Inc. (NYSE:PBI): Business Equipment Industry. Market cap of $5.01B. Dividend yield at 6.03%. Net institutional shares sold during current quarter at 4.9M vs. 1.3M net shares sold during previous quarter. Net mutual fund shares sold during current quarter at 5.7M vs. 2.1M net shares sold during the previous quarter. The stock is a short squeeze candidate, with a short float at 11.61% (equivalent to 11.4 days of average volume). The stock has gained 10.93% over the last year.

4. Eni SpA (NYSE:E): Major Integrated Oil & Gas Industry. Market cap of $96.89B. Dividend yield at 5.28%. Net institutional shares sold during current quarter at 1.6M vs. 3.1M net shares sold during previous quarter. Net mutual fund shares sold during current quarter at 3.0M vs. 167.3K net shares sold during the previous quarter. The stock has gained 6.17% over the last year.

5. People's United Financial Inc. (NASDAQ:PBCT): Savings & Loans Industry. Market cap of $4.55B. Dividend yield at 4.94%. Net institutional shares sold during current quarter at 13.0M vs. 5.8M net shares sold during previous quarter. Net mutual fund shares sold during current quarter at 12.3M vs. 1.3M net shares sold during the previous quarter. The stock has lost 16.49% over the last year.

6. DTE Energy Co. (NYSE:DTE): Electric Utilities Industry. Market cap of $8.22B. Dividend yield at 4.62%. Net institutional shares sold during current quarter at 985.9K vs. 4.2M net shares sold during previous quarter. Net mutual fund shares sold during current quarter at 1.4M vs. 969.6K net shares sold during the previous quarter.

7. Entergy Corporation (NYSE:ETR): Electric Utilities Industry. Market cap of $13.18B. Dividend yield at 4.51%. Net institutional shares sold during current quarter at 6.4M vs. 6.3M net shares sold during previous quarter. Net mutual fund shares sold during current quarter at 3.0M vs. 2.3M net shares sold during the previous quarter. The stock has lost 3.59% over the last year.

8. Dominion Resources, Inc. (NYSE:D): Electric Utilities Industry. Market cap of $26.90B. Dividend yield at 4.31%. Net institutional shares sold during current quarter at 5.5M vs. 3.6M net shares sold during previous quarter. Net mutual fund shares sold during current quarter at 1.6M vs. 1.4M net shares sold during the previous quarter. The stock has gained 18.91% over the last year.

9. Macerich Co. (NYSE:MAC): REIT. Market cap of $6.17B. Dividend yield at 4.22%. Net institutional shares sold during current quarter at 2.1M vs. 881.9K net shares sold during previous quarter. Net mutual fund shares sold during current quarter at 818.3K vs. 1.2M net shares sold during the previous quarter. Note that this is a risky stock that is significantly more volatile than the overall market (beta = 2.65). MAC has gained 28.2% over the last year.

10. Plum Creek Timber Co. Inc. (NYSE:PCL): REIT. Market cap of $6.56B. Dividend yield at 4.14%. Net institutional shares sold during current quarter at 4.6M vs. 1.6M net shares sold during previous quarter. Net mutual fund shares sold during current quarter at 1.8M vs. 913.5K net shares sold during the previous quarter. PCL is a short squeeze candidate, with a short float at 10.6% (equivalent to 12.79 days of average volume).

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

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