In this article, we will take a look at the 12 52-week low dividend stocks to consider.
Dividend investing came into limelight in 2022 after the stock market began to fall amid rising inflation, interest rate hikes, and an uncertain global geopolitical situation worsened by the Russian invasion of Ukraine. Investors poured billions into dividend-paying stocks and ETFs in search of certainty and income. Analysts believe dividend companies will continue to be on investors’ radar in 2023 as the Fed’s interest rate hikes are far from over and the market is yet to find a bottom.
According to a report by T. Rowe Price, the major reason behind the market decline in 2022 was the lack of valuation discipline practiced after the pandemic. With the market awash with liquidity, investors began to pile into high-growth stocks that had weak or no fundamentals. The report also said that these market dynamics gave way to speculative trading.
The report also said that period of low equity returns can boost the appeal of stocks that pay above‑average dividend yield. Here is an important excerpt from the report:
“Across growth and value style factors recently, the market appears to ascribe little relative value to higher‑yielding large‑cap equities, especially relative to historical levels. We believe that this dislocation could create a favorable setup for equities with higher dividend yields or, at the very least, make for a potentially fruitful hunting ground for value‑oriented investors.”
However, the T. Rowe report makes an interesting point. It says that low valuation and high dividend yield alone does not make a stock investable. The report emphasizes the importance of fundamental valuation. For example, T. Rowe says that it has been bullish on Qualcomm because of its long-term growth catalysts and while Apple’s decision to start making in-house chips can affect the company, the market is not realizing the extent of Qualcomm’s strengths in the market.
However, T. Rowe gave some bullish comments about dividend stocks in the financial sector, saying:
“The financials sector is an area where we are finding compelling values and potentially attractive dividend yields. Although banks’ net interest margins typically expand in a rising‑rate environment, we favor investments where the potential upside resides in company‑specific factors that could play out regardless of the Fed’s monetary policy decisions”
In this article you will find several bank dividend stocks that have been battered over the past year and are now trading at attractive valuations.
Image by Alexsander-777 from Pixabay
Our Methodology
For this article we used Finviz’s stock screener to select stocks that are trading at their 52-week low prices as of January 17 or in a 0-3% above range of their 52-week lows and have dividend yields of over 2%. The idea was to find stocks that are hovering near their 52-week lows but provide an attractive entry point for dividend investors. The stocks are ranked according to the number of hedge funds having stakes in them as of the end of the third quarter. We used Insider Monkey’s database of 920 hedge funds to gauge that metric.
12 52-Week Low Dividend Stocks To Consider
12. Citizens & Northern Corporation (NASDAQ:CZNC)
Number of Hedge Fund Holders: 2
Citizens & Northern Corporation (NASDAQ:CZNC) is a Pennsylvania-based bank holding company. It is a high-yield dividend stock as Citizens & Northern Corporation (NASDAQ:CZNC)’s dividend yield as of January 17 is 4.8%. Back in November, Piper Sandler analyst Casey Orr Whitman resumed coverage of Citizens & Northern Corporation (NASDAQ:CZNC) with a Neutral rating and a $26 price target. The analyst said that Citizens & Northern Corporation (NASDAQ:CZNC)’s expense growth has affected its profitability. However, the analyst thinks it should “bear fruit with stronger loan growth than historical levels going forward.”
At the end of the September quarter of 2022, 2 hedge funds reported having stakes in Citizens & Northern Corporation (NASDAQ:CZNC). The total value of these stakes was $2.9 million.
11. SB Financial Group, Inc. (NASDAQ:SBFG)
Number of Hedge Fund Holders: 2
SB Financial Group, Inc. (NASDAQ:SBFG) has a dividend yield of over 3%. It ranks 11th in our list of the top 52-week low dividend stocks to consider. In November, SB Financial Group, Inc. (NASDAQ:SBFG) posted Q3 GAAP EPS of $0.47. Revenue in the quarter fell 13.2% on a year-over-year basis to total $14.47 million.
2 hedge funds tracked by Insider Monkey reported having stakes in SB Financial Group, Inc. (NASDAQ:SBFG) as of the end of the third quarter.
10. First Savings Financial Group, Inc. (NASDAQ:FSFG)
Number of Hedge Holders: 4
First Savings Financial Group, Inc. (NASDAQ:FSFG) is a bank holding company. First Savings Financial Group, Inc. (NASDAQ:FSFG) has a dividend yield of over 2.5% as of January 17. In November, First Savings Financial Group, Inc. (NASDAQ:FSFG) declared a dividend of $0.13/share. The dividend was payable on December 30. In October, First Savings Financial Group, Inc. (NASDAQ:FSFG) posted its quarterly results. First Savings Financial Group, Inc. (NASDAQ:FSFG)’s revenue in the quarter fell 31% on a year-over-year basis to reach $21.35 million.
As of the end of the third quarter, 4 hedge funds tracked by Insider Monkey have stakes in First Savings Financial Group, Inc. (NASDAQ:FSFG). The total value of these stakes is $4.5 million.
9. Colony Bankcorp, Inc. (NASDAQ:CBAN)
Number of Hedge Fund Holders: 7
Colony Bankcorp, Inc. (NASDAQ:CBAN) is a Georgia-based bank holding company that owns Colony Bank. Colony Bankcorp, Inc. (NASDAQ:CBAN) has lost about 30% of its value over the past year. It has a dividend yield of about 3.3% as of January 16. Colony Bankcorp, Inc. (NASDAQ:CBAN) in October posted an adjusted EPS of $0.30 for the third quarter, missing estimates by $0.07. Revenue in the quarter grew by 6.3% to a total of $29.04 million. However, it missed estimates by $2.73 million.
8. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Number of Hedge Fund Holders: 15
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is a high-yield dividend stock. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) has lost about 72% in value over the past year. It is one of the best 52-week low stocks to consider for dividend investors.
In November, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) had declared a $2.95/share quarterly dividend. Yield on a TTM basis at the time came in at 102.7%. The dividend was payable on December 7.
As of the end of the third quarter of 2022, 15 hedge funds of the 920 tracked by Insider Monkey reported having stakes in ZIM Integrated Shipping Services Ltd. (NYSE:ZIM). The total value of these stakes was $258 million. The biggest stakeholder of ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) at the end of the third quarter of 2022 was Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital, with a $91 million stake.
7. Embecta Corp. (NASDAQ:EMBC)
Number of Hedge Fund Holders: 19
Embecta Corp. (NASDAQ:EMBC) is a New Jersey-based diabetes care company. It is a small company, with a market cap of about $1.3 billion. However, Embecta Corp. (NASDAQ:EMBC)’s dividend yield is over 2%. Embecta Corp. (NASDAQ:EMBC) is hovering around its 52-week low. Last month, Embecta Corp. (NASDAQ:EMBC) posted its fourth quarter results. Its GAAP EPS in the quarter came in at $0.30. Revenue in the period fell 8.7% to total about $274.6 million. Embecta Corp. (NASDAQ:EMBC) said despite the macroeconomic headwinds and tough market situation, Embecta Corp. (NASDAQ:EMBC) exceeded the company management’s estimates in the fourth quarter and second half of fiscal year 2022. Embecta Corp. (NASDAQ:EMBC) said that in 2023 it plans to invest in growth opportunities and to further the development of its type 2 closed loop insulin delivery system.
As of the end of the third quarter of 2022, 19 hedge funds tracked by Insider Monkey reported having stakes in Embecta Corp. (NASDAQ:EMBC). The total value of these stakes was $214 million. The biggest stakeholder in Embecta Corp. (NASDAQ:EMBC) was John Petry’s Sessa Capital which had a $74 million stake in Embecta Corp. (NASDAQ:EMBC).
6. Virtu Financial, Inc. (NASDAQ:VIRT)
Number of Hedge Fund Holders: 21
New York-based financial services firm Virtu Financial, Inc. (NASDAQ:VIRT) has a dividend yield of over 4.5% as of January 13. Virtu Financial, Inc. (NASDAQ:VIRT) has lost about 31% over the past year. In November 2022, Virtu Financial, Inc. (NASDAQ:VIRT) filed a The Freedom of Information Act lawsuit against the SEC.
As of the end of the third quarter, 21 hedge funds tracked by Insider Monkey reported having stakes in Virtu Financial, Inc. (NASDAQ:VIRT), compared to 25 funds in the previous quarter. The total value of these stakes was $218 million.
Jim Simons’ Renaissance Technologies owns a $97 million stake in Virtu Financial, Inc. (NASDAQ:VIRT). Another important stakeholder in Virtu Financial, Inc. (NASDAQ:VIRT) as of the end of September was Cliff Asness’ AQR Capital Management, which owns a $28 million stake in Virtu Financial, Inc. (NASDAQ:VIRT).
5. NRG Energy, Inc. (NYSE:NRG)
Number of Hedge Fund Holders: 27
NRG Energy, Inc. (NYSE:NRG) is a high-yield divided stock that is trading in its 52-week low window. NRG Energy, Inc. (NYSE:NRG) has a dividend yield of over 4% as of January 17.
In December, Bank of America upgraded NRG Energy (NYSE:NRG) to Neutral from Underperform. The bank said that the decline in NRG Energy, Inc. (NYSE:NRG) price after the company said it would buy Vivint Smart Home (NYSE:VVNT) for $5.2 billion improved its valuation.
The bank also cited some insider buying activity, according to which NRG Energy, Inc. (NYSE:NRG)’s chief executive and five directors bought about 46,000 shares at roughly $32 each. The bank said that the buying activity shows “managerial confidence.”
As of the end of the third quarter, 27 hedge funds tracked by Insider Monkey had stakes in NRG Energy. The total value of these stakes was $1.2 billion.
4. Hormel Foods Corporation (NYSE:HRL)
Number of Hedge Fund Holders: 29
Hormel Foods Corporation (NYSE:HRL)’s 52-week low stock price is $44.21 while its stock price as of January 17 is $46.82 as of writing. Hormel Foods Corporation (NYSE:HRL) still presents an attractive buying opportunity for those who are looking to pile into dividend-paying stocks that are hovering in their 52-week low ranges. As of the end of the third quarter, 29 hedge funds tracked by Insider Monkey reported having stakes in Hormel Foods Corporation (NYSE:HRL). The total value of these stakes was $456 million.
Earlier this month, investment firm Argus reiterated its Buy rating on Hormel Foods Corporation (NYSE:HRL) and gave a price target of $54.
3. L3Harris Technologies, Inc. (NYSE:LHX)
Number of Hedge Fund Holders: 39
L3Harris Technologies, Inc. (NYSE:LHX) is one of the best 52-week low dividend-paying stocks to consider. L3Harris Technologies, Inc. (NYSE:LHX) hit a new 52-week low earlier this month. L3Harris Technologies, Inc. (NYSE:LHX) recently said it will buy Aerojet Rocketdyne (NYSE:AJRD) for $4.7 billion in all-cash deal, including debt.
L3Harris Technologies, Inc. (NYSE:LHX) has been increasing its dividends consistently for the past 21 years. Morgan Stanley in December 2022 upgraded L3Harris Technologies (NYSE:LHX) to Overweight from Equal weight.
As of the end of the third quarter, 39 hedge funds tracked by Insider Monkey reported having stakes in L3Harris Technologies, Inc. (NYSE:LHX) Technologies, Inc. (NYSE:LHX), compared to 34 funds in the previous quarter. The total value of these stakes was $680 million.
2. Baxter International Inc. (NYSE:BAX)
Number of Hedge Fund Holders: 42
Baxter International Inc. (NYSE:BAX) is an Illinois-based healthcare company. Baxter International Inc. (NYSE:BAX) is hovering around near its 52-week low. Baxter International Inc. (NYSE:BAX) has a dividend yield of about 2.6% as of January 17. Bank of America recently downgraded Baxter International (NYSE:BAX), citing replacement capex. BofA trimmed its price target for Baxter International Inc. (NYSE:BAX) to $55 from $66. Wells Fargo analyst Larry Biegelsen decreased the price target for Baxter International Inc. (NYSE:BAX) to $52 from $57 earlier this month. The price target cut came after Baxter International Inc. (NYSE:BAX) announced to spin off its Renal and Acute Therapies units into an independent company and explore strategic alternatives for BPS.
1. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 67
CVS Health Corporation (NYSE:CVS) is one of the most notable stocks in the US that pay dividends. In December CVS Health Corporation (NYSE:CVS) announced a significant raise for its dividend. Recently, CVS Health Corporation (NYSE:CVS) was downgraded by Evercore ISI to In Line from Perform. CVS Health Corporation (NYSE:CVS) cited an uncertain outlook for the ratings cut. CVS Health Corporation (NYSE:CVS)’s analysts also talked about a “highly competitive” annual enrollment period (AEP) for CVS Health Corporation (NYSE:CVS).
As of the end of the third quarter, 67 hedge funds tracked by Insider Monkey reported having stakes in CVS Health Corporation (NYSE:CVS) as of the end of the third quarter. The biggest stakeholder of CVS Health Corporation (NYSE:CVS) was Cliff Asness’ AQR Capital, which owns a $366 million stake in CVS Health Corporation (NYSE:CVS).
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Disclosure: None. 12 52-Week Low Dividend Stocks To Consider is originally published on Insider Monkey.
