12 Cheap Dividend Stocks With High Yields

Published on May 21, 2023 at 11:50 am by Vardah Gill in Dividend Stocks, Hedge Funds, News

In this article, we discuss 12 cheap dividend stocks with high yields. You can skip our detailed analysis of value stocks and their past performance, and go directly to read 5 Cheap Dividend Stocks With High Yields.

The Importance of Investing in Undervalued/Cheap Stocks

Investing in value stocks is one of the most popular methods to make money through the stock market. Value strategy involves discovering cheap stocks trading below their intrinsic value and investing in them, expecting them to eventually rise to their accurate value. As the market recognizes the true value of these stocks over time, value investors aim to generate long-term capital appreciation through them. These stocks usually have low price-to-earnings ratios.

Over the years, there have been periods where either value or growth stocks have outperformed the other. Their performance has widely depended on various market conditions and investor sentiment. Historical analysis shows that value stocks performed better than growth equities during periods of high-interest rates and inflation. Franklin Templeton published a report on value stocks and highlighted that due to high-interest rates across the world last year, value equities surpassed growth stocks in global markets. The report further mentioned that trailing earnings per share of value companies have grown strongly over the last decade. So far in 2023, growth stocks have reasserted their dominance over value stocks.

When analyzing the performance of both value and growth stocks, research has shown that value investing is a reliable strategy for long-term investors. One such study was conducted by Eugene Fama and Ken French and published by Dimensional Fund Advisors. The study cited that value stocks have surpassed their growth counterparts by 4.1% annually in the US from 1927 to 2021. This shows that value investing can be suitable for long-term investors, and is, therefore, one of the most preferred investment options for them.

Also read: 10 Best Small-Cap Value Stocks to Invest In

In addition to their long-term results, many value stocks come from established companies with stable earnings and a history of paying dividends. Long-term investors seeking regular income can benefit from the dividend payments provided by value stocks, which can contribute to total returns over time. Dividend companies like The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV) are popular among investors as they have raised their dividends for decades. Moreover, these companies also have strong balance sheets, which signal the growth of their future dividends. In view of this, we will discuss cheap dividend stocks with high yields in this article.

Photo by Nicholas Cappello on Unsplash

Our Methodology:

We first used the Finviz stock screener to identify dividend stocks with yields above 6%, as of May 19. From the resultant list, we shortlisted 12 stocks with P/E ratios below 20, which shows that they are traded below their intrinsic value. The hedge fund sentiment around each stock was measured using Insider Monkey’s database for Q4 2022. The stocks are ranked in descending order of their P/E ratios, as of May 19.

Cheap Dividend Stocks With High Yields

12. W. P. Carey Inc. (NYSE:WPC)

P/E Ratio as of May 19: 19.43

Dividend Yield as of May 19: 6.16%

W. P. Carey Inc. (NYSE:WPC) is a New York-based real estate investment trust company that invests in properties leased to single tenants. In the first quarter of 2022, the company posted revenue of $427.8 million, which showed a 22.8% growth from the same period last year. Its cash position was stable as it had nearly $148 million available in cash and cash equivalents at the end of March 2023.

On March 10, W. P. Carey Inc. (NYSE:WPC) declared a 0.2% hike in its quarterly dividend to $1.067 per share. The company has been growing its dividends consistently since 2011, which makes it one of the best dividend stocks on our list. The stock can be added to dividend portfolios alongside The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV). As of May 19, the stock has a dividend yield of 6.16%.

As of the close of Q4 2022, 18 hedge funds tracked by Insider Monkey reported having stakes in W. P. Carey Inc. (NYSE:WPC), compared with 22 in the previous quarter. These stakes have a collective value of roughly $117 million. Among these hedge funds, Schonfeld Strategic Advisors was the company’s leading stakeholder in Q4.

11. Magellan Midstream Partners, L.P. (NYSE:MMP)

P/E Ratio as of May 19: 13.39

Dividend Yield as of May 19: 6.69%

Magellan Midstream Partners, L.P. (NYSE:MMP) is a publicly-traded partnership that transports, stores, and distributes petroleum products. The company currently pays a quarterly dividend of $1.0475 per share and has a dividend yield of 6.69%, as of May 19. It has a long dividend growth streak of 22 years, which makes it one of the best dividend stocks on our list.

In May, RBC Capital raised its price target on Magellan Midstream Partners, L.P. (NYSE:MMP) to $66 with a Sector Perform rating on the shares. The firm highlighted the company’s acquisition by Oneok.

In the first quarter of 2023, Magellan Midstream Partners, L.P. (NYSE:MMP) reported a distributable cash flow of $313 million, up from $265 million during the same period last year. The company’s free cash flow amounted to $281 million, compared with $240 million in the prior-year period.

At the end of Q4 2022, 10 hedge funds tracked by Insider Monkey owned stakes in Magellan Midstream Partners, L.P. (NYSE:MMP), the same as in the previous quarter. These stakes have a consolidated value of over $24.2 million.

10. Delek Logistics Partners, LP (NYSE:DKL)

P/E Ratio as of May 19: 13.01

Dividend Yield as of May 19: 8.72%

Delek Logistics Partners, LP (NYSE:DKL) is an American master limited partnership that owns and operates oil and refined products logistics and marketing assets. In the first quarter of 2023, the company generated $61.8 million in distributable cash flow, up from $51.7 million during the same period last year. Its operating cash flow came in at $29.2 million.

On May 1, Delek Logistics Partners, LP (NYSE:DKL) declared a 0.5% hike in its quarterly dividend to $1.025 per share. This was the company’s 41st consecutive quarterly dividend growth. It has also raised its dividends for 11 years straight, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 8.72%, as of May 19.

At the end of Q4 2022, Ken Griffin’s Citadel Investment Group was the company’s only stakeholder, owning stakes worth $2,534.

9. 3M Company (NYSE:MMM)

P/E Ratio as of May 19: 10.29

Dividend Yield as of May 19: 6.02%

An American multinational conglomerate, 3M Company (NYSE:MMM) is next on our list of the best dividend stocks. On May 9, the company declared a quarterly dividend of $1.50 per share, which was in line with its previous dividend. The company maintains a 65-year streak of dividend growth. The stock has a dividend yield of 6.02%, as of May 19.

in Q1 2023, 3M Company (NYSE:MMM) reported an operating cash flow of $1.3 billion, which showed a 26% growth from the same period last year. The company’s free cash flow for the quarter also showed a 24% year-over-year growth at $0.9 billion. It also returned $856 million to shareholders in dividends and share repurchases.

At the end of Q4 2022, 52 hedge funds tracked by Insider Monkey held stakes in 3M Company (NYSE:MMM), up from 49 in the previous quarter. The collective value of these stakes is over $1.57 billion. Citadel Investment Group was the company’s leading stakeholder in Q4.

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

P/E Ratio as of May 19: 10.27

Dividend Yield as of May 19: 7.52%

Enterprise Products Partners L.P. (NYSE:EPD) is a Texas-based midstream natural gas and crude oil pipeline company. The company’s recent quarterly earnings were lauded by Street analysts. In April, both Morgan Stanley and Barclays raised their price targets on the stock to $33 and $30, respectively.

In the first quarter of 2023, Enterprise Products Partners L.P. (NYSE:EPD) reported a distributable cash flow of $1.9 billion, up 5.5% from the same period last year. The company generated $2 billion in operating cash flow for the quarter. In 12 months that ended March 2023, its free cash flow (FCF) came in at nearly $6 billion and it paid 75% of its FCF to shareholders during this period.

Enterprise Products Partners L.P. (NYSE:EPD), one of the best dividend stocks on our list, currently pays a quarterly dividend of $0.49 per share. The company has been rewarding shareholders with growing dividends for the past 23 years. As of May 19, the stock has a dividend yield of 7.52%.

At the end of Q4 2022, 24 hedge funds in Insider Monkey’s database owned stakes in Enterprise Products Partners L.P. (NYSE:EPD), growing from 21 in the previous quarter. These stakes are collectively valued at over $242.4 million.

Legacy Ridge Capital Management, LLC mentioned Enterprise Products Partners L.P. (NYSE:EPD) in its Q4 2022 investor letter. Here is what the firm has to say:

“Enterprise Products Partners L.P. (NYSE:EPD) is still owned in the fund and remains one of our largest positions, as it has been since the partnership was founded. This has not been a great investment. Shares are down about 6% since I first wrote about it. However, we have received $8.93 per share in dividends, which is about 34% of the 2018 share price. So, with dividends included we’ve made 28% cumulatively over 5-years. Still not good, but not an impairment of capital either.

7. U.S. Bancorp (NYSE:USB)

P/E Ratio as of May 19: 8.15

Dividend Yield as of May 19: 6.30%

U.S. Bancorp (NYSE:USB) is an American bank holding company that offers a wide range of other financial services to its consumers. The company pays a quarterly dividend of $0.48 per share for a dividend yield of 6.30%, as of May 19. It has raised its payouts consistently for the past 12 years, which makes it one of the best dividend stocks on our list.

U.S. Bancorp (NYSE:USB) generated over $7 billion in revenues in Q1 2023, up 28.2% from the same period last year. The company’s net interest income for the quarter came in at over $4.6 billion, growing from $$4.3 billion from the prior-year period.

In April, Argus maintained a Buy rating on U.S. Bancorp (NYSE:USB) with a $58 price target, appreciating the company’s first-quarter earnings. The firm also highlighted that the company’s performance remained stable following the Silicon Valley Bank fallout.

Madison Investments mentioned U.S. Bancorp (NYSE:USB) in its Q1 2023 investor letter. Here is what the firm has to say:

“U.S. Bancorp (NYSE:USB) shares are ensnared in the bank-run panic that began late in the quarter. Two large banks failed in early March as depositors rushed to withdraw money on concerns that the banks would suffer from liquidity problems. That’s a self-fulfilling prophecy, of course, but in the case of the two banks, it was prompted by the revelations of utter mismanagement of their securities portfolio. Bank models are, essentially, to borrow short and lend long. This sounds dangerous of course, and it would be if not for the deposit guarantee provided by the FDIC. The history of the U.S. banking system can be divided into two eras – pre-FDIC, when bank runs were fairly common, and post-FDIC, when bank runs have been close to non-existent. However, FDIC protection has its limits, and it remains incumbent on management to properly manage its assets and liabilities. The two banks in question didn’t do that. By taking down the share prices of all banks, we think investors are shooting first and asking questions later; they are not distinguishing between the strong and the weak.

U.S. Bancorp, as one of the largest and best-managed banks in the country, appears to be a net beneficiary so far of the panic among some depositors, with a pick-up in net deposit inflows in recent weeks. We don’t dismiss the probability of industry contagion – in a true nationwide panic, the big banks will suffer along with the small banks, and the well-managed ones will suffer along with the badly-managed ones. But we think the odds of that are quite small, and recent steps by federal regulators confirm that they will do everything in their power to prevent such a scenario, given the calamitous impact that it would have on our economy. We tightly manage this risk by limiting our exposure to the banking sector.”

6. Northrim BanCorp, Inc. (NASDAQ:NRIM)

P/E Ratio as of May 19: 7.79

Dividend Yield as of May 19: 6.31%

Northrim BanCorp, Inc. (NASDAQ:NRIM) is an Alaska-based bank holding company that offers loan and depository services to its consumers. During the first quarter of 2023, the company returned $3.4 million to shareholders in dividends, which makes it one of the best dividend stocks on our list.

On February 24, Northrim BanCorp, Inc. (NASDAQ:NRIM) declared a 20% hike in its quarterly dividend to $0.60 per share. This marked the company’s 14th consecutive year of dividend growth. The stock’s dividend yield on May 19 came in at 6.31%. Along with NRIM, investors are also paying attention to The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV) due to their strong dividend growth streaks.

The number of hedge funds tracked by Insider Monkey owning stakes in Northrim BanCorp, Inc. (NASDAQ:NRIM) stood at 11 in Q4 2022, growing from 10 in the previous quarter. These stakes have a consolidated value of roughly $40 million.

Click to continue reading and see 5 Cheap Dividend Stocks With High Yields.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on May 1, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

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

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

A New Dawn is Coming to U.S. Stocks

Published on May 2, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up