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12 Best Dividend Stocks Under $50

In this article, we discuss 12 best dividend stocks under $50. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read 5 Best Dividend Stocks Under $50

Dividend stocks are attractive for generating income, primarily due to two key factors. Firstly, the regular payouts from these stocks assist investors in meeting their immediate liquidity requirements. Secondly, historical data suggests that focusing on dividend-paying investments has the potential to reduce market volatility and mitigate losses during market downturns. Specifically, companies that consistently increase their dividends may offer a level of protection during bearish market conditions. Analyzing the timeframe from December 31, 1999, to March 31, 2022, when the overall market experienced declines, the S&P High Yield Dividend Aristocrats demonstrated superior performance compared to both the S&P Composite 1500 and the S&P 500 High Dividend Index. On average, they outperformed by 140 basis points per month and 49 basis points per month, respectively.

Strategies centered on dividend growth have the potential to alleviate apprehensions related to the performance of stocks with high dividend payouts in an environment of rising interest rates, as reported by S&P Dow Indices. This is achieved through two key mechanisms. Firstly, as these strategies prioritize consistent dividend increases over high initial yields, their performance is less influenced by the value factor when compared to high dividend-paying stocks. Consequently, the performance of dividend growth strategies is expected to be more resilient in growth-oriented markets. The report highlighted that, considering the emphasis on strong balance sheets, dividend growth strategies might appeal to investors concerned about volatility and the possibility of increasing interest rates. These strategies allow investors to stay engaged in the stock market while also generating income. For those concentrating on U.S. equities, the S&P High Yield Dividend Aristocrats are presented as a potential solution for pursuing dividend growth.

In 2023, dividend stocks faced a performance decline attributed to the surge in the technology sector. Nevertheless, there is a belief among certain traders that dividend stocks might stage a comeback in the current year. The decline in yields towards the end of 2023 is noted, and there’s speculation that this trend could persist, especially if the Federal Reserve opts to reduce interest rates. Larry Adam, the Chief Investment Officer at Raymond James, expressed a preference for dividend stocks within sectors such as technology and healthcare due to their growth potential, as opposed to traditionally defensive categories like utilities. He emphasizes that his firm exclusively invests in dividend stocks that incorporate a growth component.

The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some of the best dividend stocks that have been grabbing investors attention over the years. In this article, we will take a look at dividend stocks with share prices below $50.

Our Methodology:

For this list, we scanned Insider Monkey’s database of 900+ hedge funds and picked 12 dividend stocks priced under $50 as of the close of January 26. We preferred stocks with strong dividend growth and stability. These are the best dividend stocks under $50 according to hedge funds. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).

12. Hormel Foods Corporation (NYSE:HRL)

Number of Hedge Fund Holders: 18

Share Price as of January 26: $30.9

Hormel Foods Corporation (NYSE:HRL) is a multinational food company that operates in the food processing and manufacturing industry. The company produces and markets a diverse range of food items, including meat and poultry products, deli meats, refrigerated entrees, soups, and various other prepared foods. the company currently pays a quarterly dividend of $0.2825 per share, having raised it by 2.7% in October 2023. It has been growing its dividends for the past 58 years, which makes HRL one of the best dividend stocks under $50. The stock offers a dividend yield of 3.65%, as of January 28.

In addition to HRL, The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some of the most popular dividend growers among investors.

At the end of Q3 2023, 18 hedge funds in Insider Monkey’s database reported having stakes in Hormel Foods Corporation (NYSE:HRL), compared with 24 in the previous quarter. The overall value of these stakes is approximately $245.3 million.

11. Amcor plc (NYSE:AMCR)

Number of Hedge Fund Holders: 23

Share Price as of January 26: $9.54

Amcor plc (NYSE:AMCR) is a global packaging company specializing in the development and production of a wide range of packaging solutions. The company’s current quarterly dividend comes in at $0.1250 per share for a dividend yield of 5.24%, as of January 28. It has been rewarding shareholders with growing dividends for the past 40 years, which makes AMCR one of the best dividend stocks on our list. In the most recent quarter, the company returned $205 million to shareholders through dividends and share repurchases.

As of the close of Q3 2023, 23 hedge funds in Insider Monkey’s database reported having stakes in Amcor plc (NYSE:AMCR), compared with 24 in the preceding quarter. The consolidated value of these stakes is more than $206.2 million. With roughly 7 million shares, Balyasny Asset Management was the company’s leading stakeholder in Q3.

10. Enterprise Products Partners L.P. (NYSE:EPD)

Number of Hedge Fund Holders: 25

Share Price as of January 26: $27.4

Enterprise Products Partners L.P. (NYSE:EPD) is a Texas-based midstream energy company that operates in the oil and gas industry. The company owns and operates an extensive network of pipelines for the transportation of various energy products. It currently pays a quarterly dividend of $0.515 per share, having raised it by 3% on January 8. This marked the company’s 25th consecutive year of dividend growth, which makes EPD one of the best dividend stocks under $50. As of January 28, the stock has a dividend yield of 7.52%.

Insider Monkey’s database of Q3 2023 showed that 25 hedge funds owned stakes in Enterprise Products Partners L.P. (NYSE:EPD), the same as in the previous quarter. These stakes are worth collectively over $325.2 million.

9. Energy Transfer LP (NYSE:ET)

Number of Hedge Fund Holders: 34

Share Price as of January 26: $14.4

Energy Transfer LP (NYSE:ET) is an American energy company that is involved in the processing, storage, and transportation of natural gas liquids and refined products. On January 25, the company announced a 0.8% increase in its quarterly dividend to $0.315 per share. Through this hike, the company achieved its ninth consecutive quarter of dividend growth, which makes ET one of the best dividend stocks under $50. The stock has a dividend yield of 8.64%, as of January 28.

As of the end of the September quarter of 2023, 34 hedge funds in Insider Monkey’s database owned stakes in Energy Transfer LP (NYSE:ET), which remained unchanged from the preceding quarter. The collective stake value of these positions is over $803.2 million.

8. Altria Group, Inc. (NYSE:MO)

Number of Hedge Fund Holders: 40

Share Price as of January 26: $40.2

Altria Group, Inc. (NYSE:MO) is a large American corporation primarily engaged in the tobacco industry. Some of the well-known brands under the Altria umbrella include Marlboro, Copenhagen, Skoal, and Black & Mild. In December 2023, the company declared a quarterly dividend of $0.98 per share, which was in line with its previous dividend. The company has raised its dividends for 54 years in a row, which makes MO one of the best dividend stocks on our list. As of January 28, the stock has a dividend yield of 9.75%.

At the end of the third quarter of 2023, 40 hedge funds in Insider Monkey’s database reported having stakes in Altria Group, Inc. (NYSE:MO), compared with 43 in the preceding quarter. These stakes have a collective value of more than $565 million. Among these hedge funds, Harris Associates was the company’s leading stakeholder in Q3.

7. KeyCorp (NYSE:KEY)

Number of Hedge Fund Holders: 42

Share Price as of January 26: $14.6

KeyCorp (NYSE:KEY) is an Ohio-based regional bank holding company. It operates as a financial services company, providing a range of banking and financial products and services to individuals, small businesses, and corporate clients. The company currently pays a quarterly dividend of $0.205 per share and has a dividend yield of 5.59%, as of January 28. It is one of the best dividend stocks on our list as the company has been growing its payouts for the past 12 years.

Insider Monkey’s database of Q3 2023 indicated that 42 hedge funds owned stakes in KeyCorp (NYSE:KEY), compared with 49 in the preceding quarter. The collective value of these stakes is nearly $650 million.

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

Number of Hedge Fund Holders: 42

Share Price as of January 26: $17.44

Kinder Morgan, Inc. (NYSE:KMI) ranks sixth on our list of the best dividend stocks under $50. The American energy and infrastructure company was a part of 42 hedge fund portfolios at the end of Q3 2023, growing from 36 in the previous quarter, as per Insider Monkey’s database. The collective value of stakes owned by these hedge funds is roughly $770 million.

Kinder Morgan, Inc. (NYSE:KMI) offers a quarterly dividend of $0.2825 per share and has been rewarding shareholders with growing dividends for the past six consecutive years. As of January 28, the stock offers a dividend yield of 6.48%. The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some other prominent stocks that have raised their dividends for decades.

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Disclosure. None. 12 Best Dividend Stocks Under $50 is originally published on Insider Monkey.

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