In this article, we discuss 12 best dividend stocks under $30.
It is evident that the market follows various investment patterns, where one strategy may outperform the other depending on shifts in investor sentiment. At the beginning of 2023, there was a resurgence in interest in AI stocks, overshadowing the previously favored dividend equities. However, the situation is about to change. Following the Federal Reserve’s recent announcement about possible interest rate increases, investors are once again turning their attention to dividend-paying stocks as a means of generating cash.
According to Refinitiv Lipper, dividend-paying stocks are experiencing investor interest as the $11.7 billion ProShares S&P 500 Dividend Aristocrats ETF received $33 million in net inflows during the two weeks ending on July 19. This marked the ETF’s highest two-week gain since January. The fund tracks the performance of companies that have raised their dividends for 25 years or more and has returned 7.5% so far this year. Fund managers are also giving a positive outlook for dividend stocks this year. In a recent poll conducted by BoFA Global Research, 44% of global fund managers expressed their expectation that high-dividend stocks would outperform low-dividend stocks. This figure indicates a significant nine-percentage-point increase compared to the previous month.
Jurrien Timmer, a director of global macro at Fidelity Investments, has now shifted his focus more toward financial and energy stocks. He believes that both sectors will experience positive outcomes due to what he anticipates will be an economic soft landing, avoiding a severe recession. Both the sectors are also showing a stable performance. This month, the S&P 500 energy sector has risen by 5.7%, while the financials sector has increased by 5.6%. In comparison, the broader index has only gained 2.5%. In addition to this, the energy sector has paid steady dividends to shareholders over the past years. In one of our articles on dividend stocks, we reported that dividends in the energy sector have experienced significant growth, increasing by 401% since 2018. In contrast, the rest of the US market saw a dividend growth of 86% during the same period.
Also read: 12 Best Dividend Stocks Under $25
Though growth in dividend payouts has slowed in 2023, investors are turning to dividend-paying stocks as a means of achieving a total return. They expect that bond yields might weaken, while stocks are expected to perform well. Historical analysis demonstrates the importance of dividends in generating returns and making money. For instance, from 1993 through the end of 2022, the S&P 500 increased by 777%. Yet, when dividends were included, the S&P 500’s total growth during that period surpassed 1,400%. Moreover, dividend income contributed an average of 40% to the total return of the S&P 500 from 1930 to 2021.
Investors are showing considerable interest in some of the best dividend stocks such as The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP). These companies have a track record of consistently increasing their dividends for decades, highlighting their strength and ability to endure market downturns. Their consistent dividend growth makes them attractive choices for income-oriented investors.
Our Methodology:
For this list, we used a Finviz stock screener to find dividend stocks with share prices below $30 as of July 25. From the initial list, we selected companies with dividend yields above 2% and a history of regular dividend payments, indicating sustainable dividends. Finally, we narrowed it down to 12 stocks that had the highest number of hedge fund investors, as tracked by Insider Monkey in Q1 2023.
12. Leggett & Platt, Incorporated (NYSE:LEG)
Number of Hedge Fund Holders: 11
Share Price as of July 25: $29.3
Leggett & Platt, Incorporated is a Missouri-based diversified manufacturing company that specializes in producing a wide range of engineered products and components used in various industries. The company’s cash position remained stable in the first quarter of 2023, as it generated $97 million in operating cash flow, which showed a staggering 148% growth from the same period last year. It also showed confidence in its strong cash flow generation and expects to return $240 million to shareholders through dividends in FY23.
Leggett & Platt, Incorporated currently pays a quarterly dividend of $0.46 per share, having raised it by 4.5% in May this year. Through this increase, the company took its dividend growth streak to 52 years, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 6.26%, as recorded on July 25.
Leggett & Platt, Incorporated has a solid dividend growth track record like The Procter & Gamble Company, Colgate-Palmolive Company, and PepsiCo, Inc..
At the end of Q1 2023, 11 hedge funds in Insider Monkey’s database reported having stakes in Leggett & Platt, Incorporated, down from 12 in the previous quarter. These stakes have a total value of roughly $32 million. Ken Griffin’s Citadel Investment Group was the company’s leading stakeholder in Q1.
11. Nu Skin Enterprises, Inc. (NYSE:NUS)
Number of Hedge Fund Holders: 11
Share Price as of July 25: $29.36
Nu Skin Enterprises, Inc. (NYSE:NUS) is an American multilevel marketing company that operates in the beauty and wellness industry. Through its business platform, independent distributors promote and sell the products directly to consumers.
Nu Skin Enterprises, Inc., one of the best dividend stocks on our list, currently pays a quarterly dividend of $0.39 per share. It maintains a 22-year streak of consistent dividend growth. As of July 25, the stock has a dividend yield of 5.24%.
In the first quarter of 2023, Nu Skin Enterprises, Inc. reported revenue of $481.4 million, which beat Street estimates by $3.97 million. The company remained committed to its shareholder obligation and returned $19.4 million to stakeholders through dividends during the quarter.
As of the close of Q1 2023, 11 hedge funds tracked by Insider Monkey owned stakes in Nu Skin Enterprises, Inc., worth collectively over $120.8 million. Among these hedge funds, AQR Capital Management was the company’s leading stakeholder in Q1.
10. Manulife Financial Corporation (NYSE:MFC)
Number of Hedge Fund Holders: 15
Share Price as of July 25: $19.80
Manulife Financial Corporation (NYSE:MFC) is a Canada-based financial services company that offers a diverse range of related services and products. On May 10, the company declared a quarterly dividend of C$0.365 per share, which was in line with its previous dividend. It has been growing its dividends every year for the past 10 years, which makes it one of the best dividend stocks on our list. The stock’s dividend yield on July 25 came in at 5.60%.
Manulife Financial Corporation saw an upward trend in hedge fund positions in the first quarter of 2023, with 15 funds tracked by Insider Monkey owning stakes in the company, compared with 10 in the previous quarter. The overall value of these stakes is more than $151.2 million.
9. Premier Financial Corp. (NASDAQ:PFC)
Number of Hedge Fund Holders: 15
Share Price as of July 25: $19.03
Premier Financial Corp. (NASDAQ:PFC) is an Ohio-based insurance company that also operates in the banking sector. The company provides a range of loans and insurance products, including property, casualty, life, and group health insurance.
In the first quarter of 2023, Premier Financial Corp. posted revenue of $68.7 million, which fell by 8.1% from the same period last year. The company ended the quarter with over $157 million in cash and cash equivalents, up from $128.1 million in the previous quarter.
One of the best dividend stocks on our list, Premier Financial Corp. has raised its dividends consistently for the past 10 years. It currently pays a quarterly dividend of $0.31 per share and has a dividend yield of 6.53%, as recorded on July 25.
At the end of the March quarter of 2023, 15 hedge funds owned stakes in Premier Financial Corp., up from 14 in the previous quarter, according to Insider Monkey’s database. The consolidated value of these stakes is over $30.4 million.
8. Hilltop Holdings Inc. (NYSE:HTH)
Number of Hedge Fund Holders: 18
Share Price as of July 25: $29.1
Hilltop Holdings Inc. (NYSE:HTH) is a Texas-based financial holding company that offers financial products and banking services through its subsidiaries. The company recently announced its Q2 2023 earnings and reported revenue of $309 million, which surpassed analysts’ estimates by $3.79 million. Its net income attributed to common stockholders for the quarter came in at $18.1 million.
On May 8, the company announced a quarterly dividend of $0.16 per share, which remained unchanged from its previous dividend. However, the company has been rewarding shareholders with growing dividends for the past 5 years, which makes it one of the best dividend stocks on our list. As of July 25, the stock has a dividend yield of 2.22%.
At the end of March 2023, 18 hedge funds in Insider Monkey’s database reported having stakes in Hilltop Holdings Inc., down from 20 a quarter earlier. These stakes are collectively valued at over $67.6 million. Among these money managers, North Reef Capital was the company’s largest stakeholder in Q1.
7. UGI Corporation (NYSE:UGI)
Number of Hedge Fund Holders: 20
Share Price as of July 25: $26.81
UGI Corporation (NYSE:UGI) is next on our list of the best dividend stocks under $30. The American diversified energy company operates in multiple segments of the energy industry, providing products and services to a wide range of consumers.
UGI Corporation declared a 4% hike in its quarterly dividend to $0.375 on May 3. This was the company’s 36th consecutive year of dividend growth. The stock offers a dividend yield of 5.57%, as of July 25.
The number of hedge funds tracked by Insider Monkey owning stakes in UGI Corporation stood at 20 in Q1 2023. These stakes have a consolidated value of over $70 million. First Eagle Investment Management was the company’s leading stakeholder in Q1, holding more than 7.3 million shares.
6. CNO Financial Group, Inc. (NYSE:CNO)
Number of Hedge Fund Holders: 22
Share Price as of July 25: $25.2
CNO Financial Group, Inc. (NYSE:CNO) is an American financial services company that specializes in insurance and retirement solutions. The company serves middle-income working individuals and retirees, offering a range of products and services through its subsidiaries.
In the first quarter of 2023, CNO Financial Group, Inc. generated $1 billion in revenues, which saw an 18.6% growth from the same period last year. During the quarter, the company returned $32.2 million to shareholders through dividends and share repurchases.
CNO Financial Group, Inc. has raised its dividends for ten years straight, which places it as one of the best dividend stocks on our list. The company’s current quarterly dividend stands at $0.15 per share for a dividend yield of 2.39%, as recorded on July 25. It can be added to dividend portfolios alongside The Procter & Gamble Company, Colgate-Palmolive Company, and PepsiCo, Inc..
As of the close of Q1 2023, 22 hedge funds tracked by Insider Monkey reported having stakes in CNO Financial Group, Inc., up from 20 a quarter earlier. These stakes are collectively worth over $330 million.
5. Lincoln National Corporation (NYSE:LNC)
Number of Hedge Fund Holders: 26
Share Price as of July 25: $27.8
Lincoln National Corporation (NYSE:LNC) is an American holding company that operates multiple insurance and investment management businesses. On May 25, the company announced a quarterly dividend of $0.45 per share, which was consistent with its previous dividend. The stock’s dividend yield on July 25 came in at 6.56%.
At the end of Q1 2023, 26 hedge funds tracked by Insider Monkey owned investments in Lincoln National Corporation, worth roughly $195.3 million. Among these hedge funds, Citadel Investment Group was the company’s leading stakeholder with over 1.6 million shares.
4. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 26
Share Price as of July 25: $27.05
Enterprise Products Partners L.P. (NYSE:EPD) is next on our list of the best dividend stocks under $30. The American midstream natural gas and crude oil company has been raising its dividends consistently for the past 24 years. It currently pays a quarterly dividend of $0.50 per share and has a dividend yield of 7.37%, as recorded on July 25.
Enterprise Products Partners L.P.’s cash generation remained strong in the 12 months ending March 2023. During this period, the company generated over $6 billion in free cash flow and distributed 75% of it to its shareholders through dividends.
As of the close of Q1 2023, 26 hedge funds in Insider Monkey’s database presented a bullish stance on Enterprise Products Partners L.P., up from 24 in the previous quarter. The total value of stakes owned by these funds is over $254 million.
3. Coterra Energy Inc. (NYSE:CTRA)
Number of Hedge Fund Holders: 31
Share Price as of July 25: $27.06
Coterra Energy Inc. (NYSE:CTRA) is an American energy company that is involved in the exploration of hydrocarbon. In its first-quarter earnings announced in May, the company generated over $1.78 billion in revenues, which saw a 6% growth from the same period last year. Its operating cash flow stood at nearly $1.5 billion and its free cash flow amounted to $556 million.
Coterra Energy Inc. offers a quarterly dividend of $0.20 per share and has a dividend yield of 7.92%, as of July 25. During its most recent quarter, the company distributed over $152 million to shareholders through dividends, which makes it one of the best dividend stocks on our list.
At the end of March 2023, 31 hedge funds tracked by Insider Monkey reported having stakes in Coterra Energy Inc., compared with 33 in the previous quarter. These stakes have a consolidated value of over $435 million.
2. The AES Corporation (NYSE:AES)
Number of Hedge Fund Holders: 44
Share Price as of July 25: $21.60
The AES Corporation (NYSE:AES) is a Virginia-based power company engaged in the generation and distribution of electric power. The company was a part of 44 hedge fund portfolios at the end of Q1 2023, which remained unchanged from the previous quarter, as per Insider Monkey’s database. The stakes owned by these funds have a total value of over $1.11 billion.
The AES Corporation, one of the best dividend stocks to buy under $30, has raised its dividends each year since 2013. It currently pays a quarterly dividend of $0.1659 per share and its dividend yield on July 25 stood at 3.03%.
1. Ally Financial Inc. (NYSE:ALLY)
Number of Hedge Fund Holders: 48
Share Price as of July 25: $29.2
Ally Financial Inc. (NYSE:ALLY) is an American financial services company that operates as a diversified financial institution. The company provides a range of products and services to consumers, businesses, automotive dealers, and corporate clients. It tops our list of the best dividend stocks to buy under $30.
Ally Financial Inc.’s announcement of dividend on July 17 remained in line with its previous dividend at $0.30 per share. However, the company has raised its dividends consistently for the past six years. As of July 25, the stock offers a dividend yield of 4.15%.
The number of hedge funds tracked by Insider Monkey owning stakes in Ally Financial Inc. jumped to 48 in Q1 2023, from 43 in the previous quarter. Among these hedge funds, Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q1.
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This article is originally published at Insider Monkey.
