13 Best Dividend Stocks to Buy Under $25

In this article, we will take a look at the 12 Best Dividend Stocks to Buy Under $25. 

Dividend stocks have lagged the broader market for several years. Even so, many investors continue to value them for their long-term appeal.

Damien Conover, Morningstar’s director of equity research in North America, said that dividends are incredibly important for investors and can signal certain characteristics about a company. He explained that as companies move through their lifecycle and become more mature, they are more likely to pay dividends. Earlier-stage companies tend to reinvest much of their capital into growth initiatives. As businesses mature, they often increase the portion of earnings returned to shareholders. He added that many investors prefer this type of positioning because it allows them to receive dividend income as part of their portfolios.

Discussing the possibility of dividend cuts, Conover noted that companies rarely reduce dividends, though it can happen. He said that firms with economic moats have protected profits, which lowers the risk of dividend reductions in the future. According to him, companies with strong competitive positions, which Morningstar identifies as economic moats, are generally in a better position to sustain their payouts.

He added that when investors consider dividends alongside an economic moat, the combination can provide greater confidence and security in a company’s ability to maintain those dividends over time.

Given this, we will take a look at some of the best dividend stocks under $25.

Photo by Viacheslav Bublyk on Unsplash

Our Methodology:

For this list, we screened for dividend-paying companies with share prices under $25, as of the close of June 18. From there, we identified companies with strong dividend policies and selected those that were popular among hedge funds, as per Insider Monkey’s database of Q1 2026. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

13. Acadia Realty Trust (NYSE:AKR)

Number of Hedge Fund Holders: 20

Share Price as of the Close of June 18: $21.13

On June 9, Truist raised the firm’s price recommendation on Acadia Realty Trust (NYSE:AKR) to $24 from $23. It reiterated a Buy rating on the shares. In a research note, analyst Michael Lewis said the REIT’s above-average projected earnings growth could help support continued momentum.

During the company’s first-quarter 2026 earnings call, President, CEO, and Trustee Kenneth Bernstein said Acadia Realty Trust delivered 11% year-over-year earnings growth, driven in part by nearly 6% same-store growth. He also noted that the company completed more than $2.5 billion in transaction activity during the quarter. This included $600 million in new investments, more than $500 million in recapitalizations within its investment management platform, and the creation of a new $1.4 billion corporate borrowing facility.

Executive Vice President of Leasing and Development Alexander Levine said the company’s share of signed leases in the first quarter added another $3.5 million. He added that the pipeline of new leases in advanced negotiations had grown to $11.5 million.

Acadia Realty Trust (NYSE:AKR) is an equity real estate investment trust (REIT). The company focuses on the ownership, acquisition, development, and management of retail properties, primarily in densely populated metropolitan markets across the United States that have high barriers to entry and limited supply.

12. Broadstone Net Lease, Inc. (NYSE:BNL)

Number of Hedge Fund Holders: 23

Share Price as of the Close of June 18: $20.58

On June 12, Citizens downgraded Broadstone Net Lease, Inc. (NYSE:BNL) to Market Perform from Outperform and did not assign a price target. The firm said it has “favorable sentiment” towards Broadstone’s development funding platform but noted that the company’s leverage is near the upper end of management’s target range. The analyst stated in a research note that, unless Broadstone raises a significant amount of equity capital or sells assets, leverage is expected to remain elevated. With the stock trading just below its previous $21 price target, Citizens believes Broadstone is fairly valued.

On June 8, Truist raised the firm’s price recommendation on Broadstone Net Lease to $22 from $20. It reiterated a Hold rating on the shares. The firm increased its 2026 FAD estimate by 0.6% and its 2027 estimate by 6.3%. According to analyst Ki Bin Kim, the larger increase for 2027 reflects a new assumption that Broadstone will monetize its Project Triboro investment at twice its cost at the beginning of next year. In a research note, the analyst also said the firm expects management to provide additional details about the investment by the end of this year.

Broadstone Net Lease, Inc. (NYSE:BNL) is an industrial-focused, diversified net lease real estate investment trust (REIT). The company primarily invests in single-tenant commercial properties that are leased on a long-term net lease basis to a diverse group of tenants.

11. DiamondRock Hospitality Company (NASDAQ:DRH)

Number of Hedge Fund Holders: 25

Share Price as of the Close of June 18: $12.31

On June 18, Ladenburg raised its price recommendation on DiamondRock Hospitality Company (NASDAQ:DRH) to $14 from $13. It reiterated a Buy rating on the shares. The analyst said the re-rating of the hotel real estate investment trust sector could continue as the Iran conflict comes to an end and demand from the World Cup supports the industry. The comments were made in a research note to investors.

Earlier, on June 1, Barclays analyst Richard Hightower raised the firm’s price goal on DHR to $12 from $10. He maintained an Equal Weight rating on the stock. Barclays increased its estimates and price targets for hotel real estate investment trusts, citing stronger operating performance so far this year. At the same time, the analyst noted that the lodging sector’s recent relative outperformance was “too far, too fast” compared with the underlying earnings stream. As a result, Barclays became “incrementally cautious on valuation,” according to a research note sent to investors.

DiamondRock Hospitality Company (NASDAQ:DRH) is a self-advised real estate investment trust (REIT). The company owns a geographically diversified portfolio of hotels, with a focus on leisure destinations and gateway markets.

10. Atlas Energy Solutions Inc. (NYSE:AESI)

Number of Hedge Fund Holders: 26

Share Price as of the Close of June 18: $16.20

On June 4, Goldman Sachs raised its price recommendation on Atlas Energy Solutions Inc. (NYSE:AESI) to $14 from $9. It reiterated a Sell rating on the shares. In a research note, the analyst said the company faces headwinds after significantly increasing its deployable capacity. Goldman Sachs added that its analysis resulted in the revised price target.

A few days earlier, on June 2, Raymond James analyst James Rollyson upgraded Atlas Energy to Outperform from Market Perform and assigned a $25 price target. According to the analyst, the company’s first-quarter results provided greater clarity on its “materially increased” distributed power growth plans. Raymond James believes this “should set the stage for a future timeline of milestones” as Atlas evolves into a “meaningful contender” in power solutions. The firm also pointed to Atlas Energy’s agreement with Caterpillar for 1.4 gigawatts of power capacity. Raymond James argued that the deal places the company ahead of many peers pursuing the same growth opportunity, with deliveries expected earlier than those of competitors.

Atlas Energy Solutions Inc. (NYSE:AESI) provides solutions to the energy industry. Its offerings include oilfield logistics, distributed power systems, and a proppant supply network serving the Permian Basin.

9. Diversified Healthcare Trust (NASDAQ:DHC)

Number of Hedge Fund Holders: 28

Share Price as of the Close of June 18: $8.86

On June 18, RBC Capital raised its price recommendation on Diversified Healthcare Trust (NASDAQ:DHC) to $8 from $6. It reiterated a Sector Perform rating on the shares. Analyst Michael Carroll said the company has made solid progress repositioning its in-place SHOP portfolio and has become more active in pursuing revenue-generating projects. In a research note to investors, the firm said these efforts should support healthy earnings growth over the next few years.

Earlier, on June 9, B. Riley raised its price goal on DHC to $11 from $8.50. It maintained a Buy rating on the stock following a guidance increase ahead of the Nareit REITweek Conference. The analyst said the updated guidance was driven by better-than-expected expense savings. As a result, B. Riley believes the runway for “robust NOI” could extend well beyond 2026.

Diversified Healthcare Trust (NASDAQ:DHC) is a real estate investment trust (REIT) focused on owning healthcare properties across the United States.

8. Kimco Realty Corporation (NYSE:KIM)

Number of Hedge Fund Holders: 30

Share Price as of the Close of June 18: $24.38

On June 22, Wolfe Research upgraded Kimco Realty Corporation (NYSE:KIM) to Outperform from Peer Perform. It also set a $28 price target on the stock, implying a total return potential of 16%. The firm said Kimco’s fundamentals remain “strong,” while refinancing pressures tied to the company’s lower-rate Weingarten debt continue to ease. In a research note, the analyst also pointed to “muted” supply conditions and incremental store openings from major retailers as supportive factors for the company.

Earlier, on June 11, Stifel raised its price recommendation on Kimco Realty to $28 from $25.75. It reiterated a Buy rating on the stock. The update followed Kimco Realty’s pricing of a $525 million offering of 3.50% exchangeable senior unsecured notes due in 2031. The company expects net proceeds of about $513.5 million. According to the analyst, Kimco plans to use part of the proceeds to repurchase roughly 4.13 million shares, with the remaining funds allocated to general corporate purposes, including debt repayment and acquisitions.

Kimco Realty Corporation (NYSE:KIM) is a real estate investment trust (REIT) that owns and operates open-air, grocery-anchored shopping centers and mixed-use properties across the United States.

7. Pitney Bowes Inc. (NYSE:PBI)

Number of Hedge Fund Holders: 34

Share Price as of the Close of June 18: $17.50

On June 5, Citizens raised its price recommendation on Pitney Bowes Inc. (NYSE:PBI) to $19 from $17. It reiterated an Outperform rating on the shares. The firm said the increase reflects a “number of positive developments” since the company’s earnings call on May 6. In a research note, the analyst highlighted Fitch’s decision on May 13 to initiate coverage of Pitney Bowes’ debt with a BB- rating. That rating is one notch higher than those assigned by the other major ratings agencies.

Citizens believes the higher rating could help lower the company’s cost of capital over time. The firm also noted that Pitney Bowes extended the maturity of its term loan. At the same time, the US Postal Service proposed changes for presorted mail, including a 6.3% increase in the gap between five-digit volume pricing available to presort vendors such as Pitney Bowes and the three-digit spreads that some customers can achieve on their own.

Pitney Bowes Inc. (NYSE:PBI) is a technology-driven company that provides SaaS shipping solutions, mailing technology, and financial services to customers worldwide.

6. Hormel Foods Corporation (NYSE:HRL)

Number of Hedge Fund Holders: 35

Share Price as of the Close of June 18: $24.16

On May 29, BofA raised its price recommendation on Hormel Foods Corporation (NYSE:HRL) to $25 from $23. It reiterated a Neutral rating on the shares. The firm said the stock’s reaction to the company’s second-quarter adjusted EPS beat was “largely relief-driven,” reflecting cautious investor positioning ahead of the earnings release. According to the analyst, investors were encouraged that Hormel did not cut its guidance and that confidence in the company’s underlying execution continues to improve. BofA added that its higher price target reflects increased earnings estimates and better visibility into future earnings performance.

Also on May 29, Stephens raised its price goal on Hormel Foods to $25 from $22. It maintained an Equal Weight rating on the stock. Analyst Pooran Sharma told investors that the firm “would be more inclined to be more constructive” if the second-quarter earnings beat had been accompanied by a guidance increase or a clearer path to performance improvement in the second half of the year. While Stephens acknowledged that there is “likely conservatism behind management’s assumptions,” the firm said it would prefer to see additional evidence of execution before becoming more positive on the shares.

Hormel Foods Corporation (NYSE:HRL) is a global branded food company that develops, processes, and distributes a wide range of food products across multiple markets.

Click to continue reading and see 5 Best Dividend Stocks to Buy Under $25

Disclosure: None. Follow Insider Monkey on Google News.