In this article, we discuss 5 best cheap dividend stocks to buy now. If you want to read our detailed analysis of the best dividend stocks and their returns over the years, go directly to read 10 Best Cheap Dividend Stocks to Buy Now.
5. Organon & Co. (NYSE:OGN)
Share Price as of September 29: $24.51
Organon & Co. (NYSE:OGN) is a New Jersey-based pharmaceutical company that specializes in therapeutic fields and sells its products to international markets. In September, Piper Sandler upgraded the stock to Overweight with a $34 price target, noting that the company’s established brands segment will continue to be relatively limited due to the ongoing market condition. However, the firm appreciated the company’s fundamentals and its balance sheet.
In Q2 2022, Organon & Co. (NYSE:OGN) reported revenue of $1.6 billion, which fell in line with its prior-year quarter’s revenue. The company generated $151 million in operating cash flow, up from $123 million in the previous quarter. Its free cash flow stood at $67 million, compared with $60 million a quarter earlier. Moreover, at the end of June, the company had $545 million in cash and cash equivalents.
Organon & Co. (NYSE:OGN) started paying dividends in August 2021 and currently pays a quarterly dividend of $0.28 per share. The company’s shares boast a yield of 4.69%, as of September 29.
As of the close of Q2 2022, 28 hedge funds tracked by Insider Monkey reported owning stakes in Organon & Co. (NYSE:OGN), up from 27 in the previous quarter. The collective value of these stakes is over $232.6 million. AQR Capital Management was the company’s leading stakeholder in Q2.
4. M.D.C. Holdings, Inc. (NYSE:MDC)
Share Price as of September 29: $28.71
M.D.C. Holdings, Inc. (NYSE:MDC) is a Colorado-based operative builders company that provides home building products and services to its consumers. The company is one of the best dividend stocks for income investors as it has been raising its payouts consistently for the past seven years. It currently pays a quarterly dividend of $0.50 per share and has a dividend yield of 7.11%, as of September 29.
In Q2 2022, M.D.C. Holdings, Inc. (NYSE:MDC) reported a 6% year-over-year growth in its home sale revenues to $1.45 billion. The company’s operating cash flow for the quarter stood at $53 million and its free cash flow came in at $46.1 million. The company reported $190 million in net income, up 23% from the same period last year.
In July, JPMorgan maintained a Neutral rating on M.D.C. Holdings, Inc. (NYSE:MDC) with a $38 price target, expressing concerns about the homebuilding sector. However, the firm appreciated the company’s pricing trends and its increased incentives.
At the end of June 2022, 17 hedge funds tracked by Insider Monkey owned stakes in M.D.C. Holdings, Inc. (NYSE:MDC), up from 13 in the previous quarter. The total value of these stakes is nearly $43 million, compared with $24.3 million worth of stakes owned by hedge funds a quarter earlier.
3. International Paper Company (NYSE:IP)
Share Price as of September 29: $32.71
Another best dividend stock under $35 on our list is International Paper Company (NYSE:IP), which produces fiber-based packaging and pulp. In Q2 2022, the company posted revenue of $5.4 billion, which showed a 13% growth from the same period last year. Its operating cash flow stood at $390 million while its free cash flow for the quarter was $204 million. During the quarter, the company paid $170 million in dividends, which were covered within its FCF.
International Paper Company (NYSE:IP) currently pays a quarterly dividend of $0.4625 per share, with a dividend yield of 5.86%, as of September 29.
In September, Truist carried out broader research on the Packaging and Paper sector and showed concerns regarding the challenging market environment. The firm, however, sees potential for better box shipments in Q4.
At the end of Q2 2022, 27 hedge funds in Insider Monkey’s database owned stakes in International Paper Company (NYSE:IP), the same as in the previous quarter. These stakes have a total value of over $465.3 million. With roughly 5 million shares, Greenhaven Associates was the company’s leading stakeholder in Q2.
2. Conagra Brands, Inc. (NYSE:CAG)
Share Price as of September 29: $33.47
Conagra Brands, Inc. (NYSE:CAG) is an American food company that specializes in consumer packaged goods. The company’s brands are available in supermarkets, restaurants, and food service establishments. On July 22, the company announced a 5.6% hike in its quarterly dividend to $0.33 per share. This marked the company’s third consecutive year of dividend growth. As of September 29, the stock’s dividend yield came in at 3.95%.
In fiscal Q4 2022, Conagra Brands, Inc. (NYSE:CAG) reported strong cash generation, with its operating cash flow standing at $424.7 million. The company’s free cash flow was recorded at $324.5 million, up from $15 million during the same period last year. During FY22, it paid nearly $581 million in dividends to shareholders.
The number of hedge funds tracked by Insider Monkey owning positions in Conagra Brands, Inc. (NYSE:CAG) stood at 30 in Q2 2022, up from 22 in the previous quarter. The stakes owned by these hedge funds have a consolidated value of over $603.4 million.
1. The Kraft Heinz Company (NASDAQ:KHC)
Share Price as of September 29: $33.62
The Kraft Heinz Company (NASDAQ:KHC) is one of America’s largest food companies that sells its products globally. The company has been offering dividends to shareholders long before the merger of Kraft and Heinz in 2015. It currently pays a quarterly dividend of $0.40 per share for a dividend yield of 4.78%, as recorded on September 29.
In July, Stifel upgraded The Kraft Heinz Company (NASDAQ:KHC) to Buy from Neutral, with a $43 price target. The firm also appreciated the growth in the company revenue after the pandemic.
At the end of Q2 2022, 41 hedge funds tracked by Insider Monkey owned stakes in The Kraft Heinz Company (NASDAQ:KHC), worth over $13.6 billion. In the previous quarter, 35 hedge funds owned positions in the food company, with stakes valued at over $13.4 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q2.
You can also take a look at 11 Best Dividend Paying Stocks To Buy Now and 10 Very High Yield Dividend Stocks to Check Out
