Dividend stocks are becoming increasingly popular, especially after major technology companies began offering dividends for the first time this year. With inflation on the rise and expectations of a prolonged high inflation environment, Americans are turning to dividend-paying equities. In this market, affordable stocks that offer high dividends are attracting attention.
One notable name in the REIT industry is Great Ajax Corp (NYSE:AJX). According to Insider Monkey’s data, 13 hedge funds had stakes in Great Ajax Corp as of the end of the fourth quarter of 2023. The largest stakeholder during this period was Ron Mass’s Almitas Capital, with a $22 million investment in Great Ajax Corp.
Despite its appeal, Great Ajax Corp recently decreased its dividend by 40% to $0.06 per share. However, the forward dividend yield still stands at over 6%. Unlike larger companies like Johnson & Johnson, Procter & Gamble Co, and Exxon Mobil Corp, Great Ajax Corp is a smaller company with low hedge fund sentiment.
During a recent earnings call, Great Ajax management discussed the reasons behind the dividend reduction, citing a focus on book value and maximizing shareholder value. The decision to reduce the dividend followed the mutual termination of a merger agreement with Ellington Financial.
While Great Ajax Corp may not currently be the best high-dividend penny stock according to Insider Monkey’s research, there are other options worth considering. For more information on the top 10 high-dividend penny stocks to buy now, visit Insider Monkey’s website.
Disclosure: None.