5 Best Cheap DRIP Stocks to Buy Now

4. Donaldson Company, Inc. (NYSE:DCI)

Share Price as of September 19: $51.78
Dividend Yield as of September 19: 1.76%

Donaldson Company, Inc. (NYSE:DCI) is a Minnesota-based filtration company that specializes in the production and marketing of air filters. The company’s products are used in a wide variety of markets. In September, Baird appreciated the company’s high aftermarket content and margin expansion and maintained its Outperform rating on the stock.

In fiscal Q4 2022, Donaldson Company, Inc. (NYSE:DCI) reported an operating cash flow of roughly $109 million, up from $64 million in the previous quarter. The company’s free cash flow grew to $80.6 million, from $40.8 million in the preceding quarter. The company returned $28 million to shareholders through dividends, which shows its strong FCF generation. In addition to this, it also purchased $17 million worth of its shares during the quarter.

On July 29, Donaldson Company, Inc. (NYSE:DCI) declared a quarterly dividend of $0.23 per share, consistent with its previous dividend. The company has paid dividends every quarter for the past 66 years and has raised its payouts consistently for the past 26 years. As of September 19, the company’s shares yield at 1.76%.

At the end of Q2 2022, Donaldson Company, Inc. (NYSE:DCI) was a part of 21 hedge fund portfolios, according to Insider Monkey’s data. These hedge funds hold a collective stake worth $202 million in the company.