In this article, we will take a look at some of the best high dividend stocks under $100.
Analysts stress that taking a well-balanced and diversified approach is essential for handling market downturns. Staying invested in equities is important, since long-term growth potential can significantly increase retirement savings. However, during uncertain periods, emotional decision-making often comes into play. A report from Lord Abbett suggests that choosing a portfolio with a record of lower historical volatility can help ease this pressure. Looking back over the past 50 years, data shows that high-quality companies that initiate and grow dividends have delivered stronger returns with less volatility compared to the equal-weighted S&P 500 Index.
Since 2020, the markets have faced several major challenges, including the COVID-19 shutdown, the inflation-driven correction in 2022, a narrow rebound led by mega-cap tech stocks, and uncertainty from a volatile trade war. The Lord Abbett report also analyzed how three indexes performed during these events: one focused on dividend growth, and two on high dividend yield. The S&P US Dividend Growers Index outperformed the two yield-focused indexes while exhibiting much lower volatility. While dividend-paying stocks generally provided strong protection during market downturns, dividend growers managed to maintain upside potential as well, resulting in superior absolute and risk-adjusted returns.
Given this, we will take a look at some of the best dividend stocks under $100.
Our Methodology
For this list, we first used a stock screener to identify dividend-paying stocks priced below $100 and offering dividend yields above 2% as of September 18. From that selection, we chose 12 companies with strong dividend histories and ranked them according to their share prices as of the close of September 17.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13. General Mills, Inc. (NYSE:GIS)
Share Price as of the Close of September 17: $49.10
General Mills, Inc. (NYSE:GIS) is a major name in the consumer staples space, specializing in packaged food products. While it may not be one of the world’s largest players, with a market capitalization of nearly $27 billion, it remains a significant force in the industry. Thanks to its scale, the company can compete effectively in areas like distribution, R&D, and marketing. It also has the capacity to act as an industry consolidator, acquiring smaller rivals to keep its portfolio aligned with changing consumer preferences.
One of General Mills, Inc. (NYSE:GIS)’s most notable purchases was Blue Buffalo, the leading natural pet food brand at the time of acquisition. Since then, the company has expanded further in this category through smaller add-on deals, strengthening the pet-food business it built around Blue Buffalo.
On June 25, General Mills, Inc. (NYSE:GIS) declared a 1.7% hike in its quarterly dividend to $0.61 per share. This was the company’s fifth consecutive year of dividend growth. However, it has been paying regular dividends to shareholders for the past 127 years. The stock has a dividend yield of 4.89%, as of September 18.
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