10 Best Cheap Dividend Stocks to Buy Now

Published on September 29, 2022 at 4:40 pm by Vardah Gill in Dividend Stocks, Hedge Funds, News

In this article, we discuss 10 best cheap dividend stocks to buy now.

Inflation and continuous interest rate hikes have brought dividend investing to the forefront this year. Dividend stocks are gaining attention now more than ever as companies that pay regular dividends are known to help investors create long-term wealth. The historical returns of the stock market show that quality companies with strong dividend growth track records have produced better returns than their peers. According to a report by Cohen & Steers, dividend growers delivered an annual average return of 4.5% from 2000 to 2010, compared with a 2.5% drop in the non-payers. The report also mentioned that during this decade, dividend growers have outperformed with significantly less volatility of 15.3% versus 26.1% for non-dividend payers.

Morgan Stanley in its September investors’ note recommended investors to focus on companies with stable dividend growth track records as they remain resilient against a choppy market. It also mentioned that in the current market environment, these quality companies can help investors generate regular income. A report by Mackenzie Investments sheds light on the compounding returns through reinvestment of dividends. The report mentioned that in some of the world’s major markets, 29% of the returns came from reinvested dividends from September 1979 to August 2019. In addition to this, from 1998 to 2018, the dividend payout ratio of the MSCI World Index remained above 30%, even when the market return was negative. This shows that dividends are a stable component of returns even when the overall markets are down.

Dividend stocks like AbbVie Inc. (NYSE:ABBV), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ) are on investors’ radars this year as they have proven track records of dividend growth. Moreover, these companies have strong fundamentals to prop up their shareholder return. In this article, we will discuss the best cheap dividend stocks to buy now.

Photo by buian_photos on Unsplash

Our Methodology:

For this list, we selected dividend stocks with share prices below $35, as of September 29. In addition to this, we took into account the stocks’ dividend yields, hedge fund sentiments, long-term growth potential, and fundamentals while choosing these stocks. The stocks are ranked according to their share prices.

Best Cheap Dividend Stocks to Buy Now

10. Hennessy Advisors, Inc. (NASDAQ:HNNA)

Share Price as of September 29: $8.55

Hennessy Advisors, Inc. (NASDAQ:HNNA) is a California-based investment management company that offers a wide range of mutual funds services. In fiscal Q3 2022, the company reported an operating income of over $2.7 million, up from $2.3 million in the previous quarter. The company’s free cash flow came in at $2.65 million, growing from $2.2 million in the preceding quarter. It ended the quarter with $17.2 million available in cash and cash equivalents, up 23% from the same period last year.

On August 3, Hennessy Advisors, Inc. (NASDAQ:HNNA) announced a quarterly dividend of $0.1375 per share, in line with its previous dividend. The stock’s dividend yield came in at 6.50%, as of September 29. The company has not raised its dividends since 2019, unlike some of the best dividend stocks like AbbVie Inc. (NYSE:ABBV), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ), which continued raising their dividends during the pandemic of 2020.

At the end of Q2 2022, Jim Simons’ Renaissance Technologies was the only stakeholder of Hennessy Advisors, Inc. (NASDAQ:HNNA), owning stakes worth over $1.12 million.

9. Algonquin Power & Utilities Corp. (NYSE:AQN)

Share Price as of September 29: $11.60

Algonquin Power & Utilities Corp. (NYSE:AQN) is a Canadian utility company that generates and distributes electricity, natural gas, and water utility services. The company has been raising its dividends consistently for the past ten years. It currently pays a quarterly dividend of $0.1808 per share and has a dividend yield of 6.06%, as recorded on September 29.

In Q2 2022, Algonquin Power & Utilities Corp. (NYSE:AQN) reported revenue of $624.3 million, up 18.4% from the same period last year. The company’s operating cash flow stood at $268.6 million, compared with $166.2 million in the previous quarter. Its net earnings also jumped to roughly $110 million, from $91.7 million in the prior-year quarter.

At the end of Q2 2022, 16 hedge funds in Insider Monkey’s database owned stakes in Algonquin Power & Utilities Corp. (NYSE:AQN), growing from 13 in the previous quarter. The stakes owned by these hedge funds have a total value of nearly $170 million. Ken Griffin and Jim Simons were some of the company’s major stakeholders in Q2.

8. Kinder Morgan, Inc. (NYSE:KMI)

Share Price as of September 29: $16.84

Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies, headquartered in Texas, US. The company owns and controls oil and gas pipelines and terminals in the country. In August, Barclays raised its price target on the stock to $21 with an Equal Weight rating on the shares and appreciated the company’s solid fundamentals in the current market.

In the second quarter of 2022, Kinder Morgan, Inc. (NYSE:KMI) reported that its cash position has grown significantly. The company’s operating cash flow came in at $1.56 billion, up from $1.08 billion in the previous quarter. Its free cash flow was recorded at $1.2 billion, compared with $677 million a quarter earlier. Also, the company generated $545 million of excess distributable cash flow above its declared dividend.

Kinder Morgan, Inc. (NYSE:KMI) currently pays a quarterly dividend of $0.2775 per share. The company maintains a five-year streak of consistent dividend growth, which makes it one of the best dividend stocks on our list. As of September 29, the stock’s dividend yield came in at 6.70%.

At the end of Q2 2022, 41 hedge funds tracked by Insider Monkey owned investments in Kinder Morgan, Inc. (NYSE:KMI), up from 40 in the previous quarter. The total value of these investments is over $1.24 billion.

7. TELUS Corporation (NYSE:TU)

Share Price as of September 29: $20.81

TELUS Corporation (NYSE:TU) is a Canada-based national telecommunications company that provides a wide range of related products and services including internet access, video streaming, and voice entertainment. The company was a part of 15 hedge fund portfolios in Q2 2022, the same as in the previous quarter, according to Insider Monkey’s data. The stakes owned by these hedge funds hold a combined value of over $256.5 million.

In Q2 2022, TELUS Corporation (NYSE:TU) generated over $1.2 billion in operating cash flow, up from $1.13 billion in the previous quarter. The company’s free cash flow stood at $234 million, compared with $122 million a quarter earlier. In the first seven months of the year, the company returned nearly $1.4 billion in dividends to shareholders.

TELUS Corporation (NYSE:TU) has been making uninterrupted dividend payments since 2004, coming through as one of the best dividend stocks on our list. Since then, the company has cumulatively paid $16.6 billion in dividends. Its current quarterly dividend stands at C$0.3386 per share, with a dividend yield of 5.09%, as of September 29.

In September, Scotiabank lifted its price target on TELUS Corporation (NYSE:TU) to C$34.50 and maintained an Outperform rating on the shares.

6. Matthews International Corporation (NASDAQ:MATW)

Share Price as of September 29: $22.84

Matthews International Corporation (NASDAQ:MATW) is a provider of brand solutions, memorialization products, and industrial technologies. The company helps other corporations to simplify their marketing strategies.

Matthews International Corporation (NASDAQ:MATW) holds a strong dividend history, having raised its dividends consistently for the past 23 years. Moreover, the company’s five-year dividend CAGR stands at 5.29%. It currently pays $0.22 per share in quarterly dividends, with a dividend yield of 3.95%, as recorded on September 29. The company can be a good addition to dividend portfolios alongside some of the best dividend stocks like AbbVie Inc. (NYSE:ABBV), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ).

In July, B. Riley maintained its Buy rating on Matthews International Corporation (NASDAQ:MATW) with a $22 price target, highlighting the company’s fiscal Q3 results. The firm acknowledged the company’s balance sheet and its improving fundamentals.

In its fiscal Q3 2022 earnings report, Matthews International Corporation (NASDAQ:MATW) posted consolidated sales of over $1.3 billion year-to-date, showing a 5.9% growth from the same period last year. The company’s operating cash flow came in at over $11.6 million and had over $45.8 million available in cash and cash equivalents. Its total assets at the end of June amounted to nearly $2 billion.

The number of hedge funds tracked by Insider Monkey owning stakes in Matthews International Corporation (NASDAQ:MATW) grew to 17 in Q2 2022, from 15 a quarter earlier. The collective value of these stakes is over $52.1 million. Among these hedge funds, GAMCO Investors owned the largest position in the company in Q2.

5. Organon & Co. (NYSE:OGN)

Share Price as of September 29: $24.51

Organon & Co. (NYSE:OGN) is a New Jersey-based pharmaceutical company that specializes in therapeutic fields and sells its products to international markets. In September, Piper Sandler upgraded the stock to Overweight with a $34 price target, noting that the company’s established brands segment will continue to be relatively limited due to the ongoing market condition. However, the firm appreciated the company’s fundamentals and its balance sheet.

In Q2 2022, Organon & Co. (NYSE:OGN) reported revenue of $1.6 billion, which fell in line with its prior-year quarter’s revenue. The company generated $151 million in operating cash flow, up from $123 million in the previous quarter. Its free cash flow stood at $67 million, compared with $60 million a quarter earlier. Moreover, at the end of June, the company had $545 million in cash and cash equivalents.

Organon & Co. (NYSE:OGN) started paying dividends in August 2021 and currently pays a quarterly dividend of $0.28 per share. The company’s shares boast a yield of 4.69%, as of September 29.

As of the close of Q2 2022, 28 hedge funds tracked by Insider Monkey reported owning stakes in Organon & Co. (NYSE:OGN), up from 27 in the previous quarter. The collective value of these stakes is over $232.6 million. AQR Capital Management was the company’s leading stakeholder in Q2.

4. M.D.C. Holdings, Inc. (NYSE:MDC)

Share Price as of September 29: $28.71

M.D.C. Holdings, Inc. (NYSE:MDC) is a Colorado-based operative builders company that provides home building products and services to its consumers. The company is one of the best dividend stocks for income investors as it has been raising its payouts consistently for the past seven years. It currently pays a quarterly dividend of $0.50 per share and has a dividend yield of 7.11%, as of September 29.

In Q2 2022, M.D.C. Holdings, Inc. (NYSE:MDC) reported a 6% year-over-year growth in its home sale revenues to $1.45 billion. The company’s operating cash flow for the quarter stood at $53 million and its free cash flow came in at $46.1 million. The company reported $190 million in net income, up 23% from the same period last year.

In July, JPMorgan maintained a Neutral rating on M.D.C. Holdings, Inc. (NYSE:MDC) with a $38 price target, expressing concerns about the homebuilding sector. However, the firm appreciated the company’s pricing trends and its increased incentives.

At the end of June 2022, 17 hedge funds tracked by Insider Monkey owned stakes in M.D.C. Holdings, Inc. (NYSE:MDC), up from 13 in the previous quarter. The total value of these stakes is nearly $43 million, compared with $24.3 million worth of stakes owned by hedge funds a quarter earlier.

3. International Paper Company (NYSE:IP)

Share Price as of September 29: $32.71

Another best dividend stock under $35 on our list is International Paper Company (NYSE:IP), which produces fiber-based packaging and pulp. In Q2 2022, the company posted revenue of $5.4 billion, which showed a 13% growth from the same period last year. Its operating cash flow stood at $390 million while its free cash flow for the quarter was $204 million. During the quarter, the company paid $170 million in dividends, which were covered within its FCF.

International Paper Company (NYSE:IP) currently pays a quarterly dividend of $0.4625 per share, with a dividend yield of 5.86%, as of September 29.

In September, Truist carried out broader research on the Packaging and Paper sector and showed concerns regarding the challenging market environment. The firm, however, sees potential for better box shipments in Q4.

At the end of Q2 2022, 27 hedge funds in Insider Monkey’s database owned stakes in International Paper Company (NYSE:IP), the same as in the previous quarter. These stakes have a total value of over $465.3 million. With roughly 5 million shares, Greenhaven Associates was the company’s leading stakeholder in Q2.

2. Conagra Brands, Inc. (NYSE:CAG)

Share Price as of September 29: $33.47

Conagra Brands, Inc. (NYSE:CAG) is an American food company that specializes in consumer packaged goods. The company’s brands are available in supermarkets, restaurants, and food service establishments. On July 22, the company announced a 5.6% hike in its quarterly dividend to $0.33 per share. This marked the company’s third consecutive year of dividend growth. As of September 29, the stock’s dividend yield came in at 3.95%.

In fiscal Q4 2022, Conagra Brands, Inc. (NYSE:CAG) reported strong cash generation, with its operating cash flow standing at $424.7 million. The company’s free cash flow was recorded at $324.5 million, up from $15 million during the same period last year. During FY22, it paid nearly $581 million in dividends to shareholders.

The number of hedge funds tracked by Insider Monkey owning positions in Conagra Brands, Inc. (NYSE:CAG) stood at 30 in Q2 2022, up from 22 in the previous quarter. The stakes owned by these hedge funds have a consolidated value of over $603.4 million.

1. The Kraft Heinz Company (NASDAQ:KHC)

Share Price as of September 29: $33.62

The Kraft Heinz Company (NASDAQ:KHC) is one of America’s largest food companies that sells its products globally. The company has been offering dividends to shareholders long before the merger of Kraft and Heinz in 2015. It currently pays a quarterly dividend of $0.40 per share for a dividend yield of 4.78%, as recorded on September 29.

In July, Stifel upgraded The Kraft Heinz Company (NASDAQ:KHC) to Buy from Neutral, with a $43 price target. The firm also appreciated the growth in the company revenue after the pandemic.

At the end of Q2 2022, 41 hedge funds tracked by Insider Monkey owned stakes in The Kraft Heinz Company (NASDAQ:KHC), worth over $13.6 billion. In the previous quarter, 35 hedge funds owned positions in the food company, with stakes valued at over $13.4 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q2.

You can also take a look at 11 Best Dividend Paying Stocks To Buy Now and 10 Very High Yield Dividend Stocks to Check Out

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10 Best Cheap Dividend Stocks to Buy Now

Published on September 29, 2022 at 4:40 pm by Vardah Gill in Dividend Stocks, Hedge Funds, News

Best Cheap Dividend Stocks to Buy Now

10. Hennessy Advisors, Inc. (NASDAQ:HNNA)

9. Algonquin Power & Utilities Corp. (NYSE:AQN)

8. Kinder Morgan, Inc. (NYSE:KMI)

7. TELUS Corporation (NYSE:TU)

6. Matthews International Corporation (NASDAQ:MATW)

5. Organon & Co. (NYSE:OGN)

4. M.D.C. Holdings, Inc. (NYSE:MDC)

3. International Paper Company (NYSE:IP)

2. Conagra Brands, Inc. (NYSE:CAG)

1. The Kraft Heinz Company (NASDAQ:KHC)

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Published on May 16, 2026 at by Inan Dogan, PhD

Here’s why this is a deal you can’t afford to pass up:

Buy This $3 Stock Now Before the 400% Surge Begins

Published on May 15, 2026 at by Inan Dogan, PhD

Here’s why this is a deal you can’t afford to pass up:

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10 Best Cheap Dividend Stocks to Buy Now

Published on September 29, 2022 at 4:40 pm by Vardah Gill in Dividend Stocks, Hedge Funds, News

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Best Cheap Dividend Stocks to Buy Now

10. Hennessy Advisors, Inc. (NASDAQ:HNNA)

9. Algonquin Power & Utilities Corp. (NYSE:AQN)

8. Kinder Morgan, Inc. (NYSE:KMI)

7. TELUS Corporation (NYSE:TU)

6. Matthews International Corporation (NASDAQ:MATW)

5. Organon & Co. (NYSE:OGN)

4. M.D.C. Holdings, Inc. (NYSE:MDC)

3. International Paper Company (NYSE:IP)

2. Conagra Brands, Inc. (NYSE:CAG)

1. The Kraft Heinz Company (NASDAQ:KHC)

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Published on May 16, 2026 at by Inan Dogan, PhD

Here’s why this is a deal you can’t afford to pass up:

Buy This $3 Stock Now Before the 400% Surge Begins

Published on May 15, 2026 at by Inan Dogan, PhD

Here’s why this is a deal you can’t afford to pass up: