Short Sellers Run for Cover in Defensive High-Yield Dividend Stocks

24/7 Wall St. has looked at the current short interest report from the September 15 settlement date and compared it to the August 29 settlement date and prior periods for color. We have also shown what the dividend yield is that short sellers are on the hook for.

Altria Group Inc. (NYSE: MO) saw its short interest drop by such a small amount it hardly mattered — 18.611 million shares versus 18.644 million shares. Still, this was the lowest short interest back to April 30. Altria’s yield is now about 4.7% after a hike, and shares recently hit a new high.

AT&T Inc. (NYSE: T) saw a slight decline in its short interest to 210.9 million shares as of September 15, versus 212 million as of August 29. AT&T’s short interest still remains highly elevated. AT&T’s dividend yield is 5.2%, and the stock is still more or less in the middle of its 52-week trading range.

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General Electric Co. (NYSE: GE) saw a massive drop of more than 15% in its short interest, down to 60.5 million shares as of September 15 from 72 million as of August 29. GE’s common stock dividend yield is 3.5%, now that the stock has remained under its yearly high.

Kimberly-Clark Corp. (NYSE: KMB) saw a drop in the short interest to 5.359 million shares as of September 15 from 5.792 million shares as of August 29. This short interest remains lower than the average seen in 2014. The consumer products giant’s dividend is back up to about 3.2%, with shares now around $109.

Merck & Co. Inc. (NYSE: MRK) saw a handy decline in its short interest — down to 24.454 million shares as of September 15 versus 26.803 million shares short as of August 29. Again, this marked the lowest short interest reading back to January. Merck’s dividend yield is right at 3.1%, but the $60+ stock price remains within about $1 of a multiyear high.

Pfizer Inc. (NYSE: PFE) saw its short interest fall for the third report in a row. Its short interest as of September 15 was 64.1 million shares, versus 69.5 million as of August 29. This short interest is drifting lower and is moving closer to an average for 2014. Pfizer’s dividend yield is 3.6%, and shares have crept back above the $30 mark.

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Procter & Gamble Co. (NYSE: PG) saw a serious drop of more than 10% in its short interest. The September 15 reading was 25.645 million shares, versus 28.682 million shares as of August 29. Note that the prior short interest report was the highest short interest reading for the consumer products giant in over a year. P&G’s dividend yield is 3.2%, and at $85.24 the consumer products giant is back within 1% of a 52-week high.

Verizon Communications Inc. (NYSE: VZ) saw its short interest drop to 41.61 million shares as of September 15 from 42.34 million shares short as of August 29. The prior report was the highest short interest reading since April 15. Verizon’s dividend yield is currently almost 4.2%, but we would note that shares crept back above $50 and are still about 7% shy of a 52-week high.