In this article, we take a look at 10 cheap dividend stocks to buy now.
Whether you are looking to develop a passive income stream, or you are just trying something new that you think might make you relatively more financially sound, dividend investing is a practice that you should uptake. Dividend stocks have been around for quite some time now, and they have passed the test of time.
Hartford Funds shared their 2021 insights in a research in which they detailed the power of dividend stocks. Their research suggested that 84% of the total returns of the S&P 500 Index can be attributed to reinvested dividends and the power of compounding since as early as the 1970s. It was also realized that companies that grew or initiated dividend-paying policies experienced higher returns than companies that did not grow or even began issuing dividends as part of their policy. Corporations that progressively grew or even initiated their dividends saw returns of 13.20% between the years 1973 and 2020, as opposed to companies that cut or eliminated their dividends and saw returns of 10.20% for the same period of time.
Some of the most notable dividend stocks are The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ). They are dubbed as the dividend aristocrats since all of them have been known to increase their dividend payouts for over 25 consecutive years, and some even more. But, investing in these stocks can be a little difficult for most people since their share prices are high. That is where we come in and give you the 10 cheap dividend stocks to buy now.
Our Methodology
For compiling our list of the 10 cheap dividend stocks to buy now, we have picked dividend stocks with yields of at least 2% and a price per share that is under $20 (as of Nov. 16).
Photo by Annie Spratt on Unsplash
Cheap Dividend Stocks to Buy Now
10. Himax Technologies, Inc. (NASDAQ:HIMX)
Number of Hedge Fund Holders: 18
Dividend Yield: 2.67%
Share Price as of November 16: $10.09
Himax Technologies, Inc. (NASDAQ:HIMX) operates as a semiconductor company and provides display imaging processing technologies in China, Taiwan, the Philippines, Korea, Japan, Europe, and the United States. The company operates through two segments, Driver IC and Non-Driver Products. Himax Technologies, Inc. (NASDAQ:HIMX) was founded in 2001 and is headquartered in Tainan City, Taiwan.
Himax Technologies, Inc. (NASDAQ:HIMX) pays an annual dividend of $0.27 per share, which brings its dividend yield to 2.67%. The company’s dividend is higher than the US Semiconductors industry average of 1.68%.
Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke, and John Campbell, is one of the largest shareholders in the company’s stock. As of September 30th, 2021, Arrowstreet Capital’s total stake in Himax Technologies, Inc. (NASDAQ:HIMX) is $21.28 million.
By the end of the third quarter of 2021, Himax Technologies, Inc. (NASDAQ:HIMX) was a part of 18 hedge fund portfolios, with total stakes as high as $206.03 million. If we compare this to the second quarter, then, 16 hedge funds held stakes in the company, which were worth $301.41 million.
9. ASE Technology Holding Co., Ltd. (NYSE:ASX)
Number of Hedge Fund Holders: 10
Dividend Yield: 4%
Share Price as of November 16: $7.58
ASE Technology Holding Co., Ltd. (NYSE:ASX) is a Taiwan-based semiconductor company that also provides electronic manufacturing services in the United States, Taiwan, the rest of Asia, Europe, and internationally.
We keep track of data for 867 hedge funds at Insider Monkey and by the end of the third quarter of 2021, 10 hedge funds had stakes in ASE Technology Holding Co., Ltd. (NYSE:ASX), worth $271.5 million. As of September 30th, 2021, Fisher Asset Management held the biggest stake in the company. The fund’s stake in ASE Technology Holding Co., Ltd. (NYSE:ASX) is $189.4 million.
8. People’s United Financial, Inc. (NASDAQ:PBCT)
Number of Hedge Fund Holders: 19
Dividend Yield: 3.9%
Share Price as of November 16: $18.52
People’s United Financial, Inc. (NASDAQ:PBCT) is a bank holding company for People’s United Bank, National Association. The company provides services that cater to commercial banking, retail banking, and wealth management services to individual, corporate, and municipal customers. People’s United Financial, Inc. (NASDAQ:PBCT) was founded in 1842 and is headquartered in Bridgeport, Connecticut.
By the end of the third quarter of 2021, 19 hedge funds out of the elite 867 funds tracked by Insider Monkey, held stakes in People’s United Financial, Inc. (NASDAQ:PBCT) worth an estimated $222.65 million. This is compared to 24 positions in the second quarter of 2021, with stakes in excess of $219.17 million.
Alec Litowitz And Ross Laser’s Magnetar Capital is the primary shareholder in People’s United Financial, Inc. (NASDAQ:PBCT). As of this September, Magnetar Capital owns more than 6.35 million shares of stock, which amounts to stakes in excess of $111.08 million.
Unlike The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ), People’s United Financial, Inc. (NASDAQ:PBCT) is a budget-friendly investment option if you are looking to get acquainted with dividend stocks.
7. Energy Transfer L.P. (NYSE:ET)
Number of Hedge Fund Holders: 29
Dividend Yield: 6.72%
Share Price as of November 16: $9.38
Energy Transfer L.P. (NYSE:ET) functions as a gas industry company that provides energy-related services. The company was founded in 1996 and is headquartered in Dallas, Texas.
On September 28, BofA analyst Chase Mulvehill reinstated coverage of Energy Transfer L.P. (NYSE:ET) and assigned it a Buy rating with a price target of $14.
By the end of the third quarter of 2021, 29 hedge funds out of 867 tracked by Insider Monkey held stakes in Energy Transfer L.P. (NYSE:ET). These stakes were worth in excess of $727.7 million.
As of September 30th, 2021, Abrams Capital Management was the primary shareholder in Energy Transfer L.P. (NYSE:ET). David Abrams, the hedge fund manager, owns more than 22 million shares in the gas company, which brings his stake in the company to an astounding $211.95 million. The investment covers an impressive 4.62% of Mr. Abram’s 13F portfolio.
6. Arbor Realty Trust, Inc. (NYSE:ABR)
Number of Hedge Fund Holders: 13
Dividend Yield: 7.01%
Share Price as of November 16: $19.14
Arbor Realty Trust, Inc. (NYSE:ABR) operates as a real estate investment trust company (REIT) that invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates in two segments, Structured Business and Agency Business. Arbor Realty Trust, Inc. (NYSE:ABR) was incorporated in 2003 and is headquartered in Uniondale, New York.
On October 29th, Arbor Realty Trust, Inc. (NYSE:ABR) announced that its Board of Directors has declared a quarterly cash dividend of $0.36 per share of common stock for the quarter ended September 30, 2021. This is the company’s sixth consecutive quarterly increase, indicative of a 20% increase over that time span. The dividend is payable on November 30th to common shareholders of record on November 15.
Currently, Arbor Realty Trust, Inc. (NYSE:ABR) pays a dividend of $1.38 per share, annually. The stock’s forward yield is 7.01%, which is why it should be among your top picks if you are looking for cheap dividend stocks to buy now.
We, at Insider Monkey, keep track of data that encompasses 867 elite hedge funds. By the end of the third quarter of 2021, our database showed 13 hedge funds having stakes in Arbor Realy Trust, Inc. (NYSE:ABR). The total value of these stakes was $68.1 million.
As of September 30th, 2021, Matthew Hulsizer’s PEAK6 Capital Management is the lead shareholder in the company’s stock. Mr. Hulsizer’s stake in Arbor Realy Trust, Inc. (NYSE:ABR) is approximately $4.98 million, which represents 0.01% of PEAK6 Capital Management’s 13F portfolio.
Just like The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ), Arbor Realy Trust, Inc. (NYSE:ABR) is a good dividend stock to consider.
5. SFL Corporation Ltd. (NYSE:SFL)
Number of Hedge Fund Holders: 13
Dividend Yield: 7.94%
Share Price as of November 16: $9.03
SFL Corporation Ltd. (NYSE:SFL) engages in the ownership, operation, and chartering out of vessels and offshore-related assets on medium and long-term charters. The company was incorporated in 2003 and is based in Hamilton, Bermuda.
On November 11, 2021, DNB Markets analyst Mats Bye upgraded SFL Corporation Ltd. (NYSE:SFL) from a Hold rating to Buy and gave the stock a price target of $9, up from $8. SFL Corporation Ltd. (NYSE:SFL) pays an annual dividend of $0.60 per share, which brings its forward yield to 7.94%. On top of this, the stock’s annual dividend is higher than the US Marine Shipping industry average of 3.93% and the US market average of 4.24%, which is why it is one of the 10 cheap dividend stocks to buy now.
4. New Residential Investment Corp (NYSE:NRZ)
Number of Hedge Fund Holders: 16
Dividend Yield: 8.80%
Share Price as of November 16: $11.40
New Residential Investment Corp. (NYSE:NRZ), another REIT among the 10 cheap dividend stocks to buy now, focuses on investing in and managing residential mortgage-related assets in the United States. It operates through five segments: Origination, Servicing, MSR Related Investments, Residential Securities and Loans, and Consumer Loans. New Residential Investment Corp. (NYSE:NRZ) was founded in 2011 and is based in New York, New York.
On September 29th, Barclays analyst Mark DeVries reinstated coverage of New Residential Investment Corp (NYSE:NRZ) and assigned it an Overweight rating with a $13 price target. The company has increased its dividend for 2 years consecutively and currently pays an annual dividend of $1.00 per share of stock, bringing its yield to 8.80%.
At Insider Monkey we track data for 867 hedge funds, out of which 16 held stakes in the company by the end of the third quarter of 2021. The total value of these stakes was $93.06 million.
Arrowstreet Capital is currently the largest stakeholder in New Residential Investment Corp. (NYSE:NRZ). As of September 30th, the fund’s stake in the company is roughly $25.5 million.
3. AGNC Investment Corp. (NASDAQ:AGNC)
Number of Hedge Fund Holders: 16
Dividend Yield: 8.96%
Share Price as of November 16: $16.02
AGNC Investment Corp. (NASDAQ:AGNC) operates as a real estate investment trust (REIT) in the United States. The company was incorporated in 2008 and is headquartered in Bethesda, Maryland. AGNC Investment Corp. (NASDAQ:AGNC) reported third-quarter earnings this September, the company reported funds from operations per share (FFO) of $0.75 and beat estimates by $0.10. The company’s quarterly revenue came out at $279 million.
On November 11, AGNC Investment Corp. (NASDAQ:AGNC) announced that its Board of Directors have declared a cash dividend of $0.12 per share of common stock for November 2021. The dividend is payable on December 9th to all shareholders of record as of November 30th.
By the end of the third quarter of 2021, 16 hedge funds held stakes in AGNC Investment Corp. (NASDAQ:AGNC). The total value of these stakes was in excess of $81.4 million.
As of September 30th, David Harding of Winton Capital Management is the largest shareholder in the company’s stock. Mr. Harding’s stake in AGNC Investment Corp. (NASDAQ:AGNC) is $3.45 million.
2. Shell Midstream Partners LP (NYSE:SHLX)
Number of Hedge Fund Holders: 6
Dividend Yield: 9.65%
Share Price as of November 16: $12.66
Shell Midstream Partners LP (NYSE:SHLX) is an oil and gas company that also has operations in transportation services. The company owns, operates, develops, and acquires pipelines and other midstream, and logistics assets in the United States. Shell Midstream Partners LP (NYSE:SHLX) was founded in 2014 and is headquartered in Houston, Texas.
This October, Barclays analyst Theresa Chen upgraded Shell Midstream Partners LP (NYSE:SHLX) to Overweight from Equal Weight and reiterated a price target of $14. The company pays an annual dividend of $1.52 per share, which brings its forward yield to 9.65%. Shell Midstream Partners’ dividend is higher than the US Oil & Gas Midstream industry average of 6.47%, which justifies its standing among the 10 cheap dividend stocks to buy now.
According to Insider Monkey’s database, 6 hedge funds held stakes in Shell Midstream Partners LP (NYSE:SHLX) by the end of the third quarter of 2021. The value of these stakes was $17.07 million.
According to the September filings, Arrowstreet Capital was the leading stakeholder in Shell Midstream Partners LP (NYSE:SHLX) as of September 30th, 2021. The stake of the hedge fund in the company was a hefty $6.38 million.
1. Annaly Capital Management, Inc. (NYSE:NLY)
Number of Hedge Fund Holders: 15
Dividend Yield: 10.26%
Share Price as of November 16: $8.54
Annaly Capital Management, Inc. (NYSE:NLY) operates as a diversified capital manager that invests in and finances residential and commercial assets. The company was founded in 1996 and is based in New York, New York. Annaly Capital Management, Inc. (NYSE:NLY) reported earnings per share of $0.28, beating estimates by $0.01, and revenues of $308.12 million in its quarterly report for the third quarter of 2021.
Annaly Capital Management, Inc. (NYSE:NLY) pays an annual dividend of $0.88 per share, which brings its yield to 10.26%. The company’s dividend is higher than the US REIT – Mortgage industry average of 8.26%, which makes it one of the 10 cheap dividend stocks to buy now.
According to Insider Monkey’s database, where we keep track of 867 elite hedge funds, Annaly Capital Management, Inc. (NYSE:NLY) was a part of 15 investment portfolios by the end of the third quarter of 2021. The total stake of these hedge funds in the company was $34.94 million.
According to the September filings, Winton Capital Management is one of the leading shareholders in Annaly Capital Management, Inc. (NYSE:NLY). The fund’s stake in the company’s stock is $2.92 million.
See also 10 Best Dividend Stocks to Buy According to Billionaire Howard Marks and 10 Best High Dividend Stocks to Buy.
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Disclosure: None. 10 Cheap Dividend Stocks to Buy Now is originally published on Insider Monkey.
