5 Best Dividend Stocks Under $20

4 – Vistra Energy Corp. (NYSE:VST)

Vistra is a holding company, which operates in the integrated retail and electric power generation business. Serving nearly 5 million residential, commercial, and industrial retail customers with electricity and natural gas, VST is the “largest competitive residential electricity provider in the U.S.” according to its website. The company is also the largest competitive power generator in the country. In addition, the company is a large purchaser of wind power.

For the three months ended September 30, 2020, Vistra reported Net Income of $442 million.  Vistra’s third quarter Adjusted EBITDA from Ongoing Operations was $108 million higher than third quarter 2019 results, primarily driven by higher margins in its Texas segment. “Vistra’s very strong performance during the first three quarters of the year has positioned the company to achieve year-end results firmly above our recently raised 2020 guidance midpoint.” said Curt Morgan, Vistra’s president and chief executive officer and he continued so: “This will mark the fifth year in a row where Vistra has delivered financial results exceeding our guidance midpoint, with 2020 results achieved despite a tail-event pandemic. We have a team that knows how to operate cost-effectively and flexibly to extract the embedded option value from our portfolio.

Based on these figures and statements it is very understandable why 45 hedge funds chose to invest in this stock. Total amount of these hedge funds exposure to the company is slightly over $1,5 billion. Among the top three we see very familiar faces. Howard Mark’s Oaktree Capital Management with its $571 million interest has a position more than twice the next largest fund holder. And that is Fortress Investment Group with a $192 million worth of investment. On the third place we spot once again Jim Simons’ Renaissance Technologies with a $128 million shares of interest.

The company has announced an annual dividend of $0.54 per share, and this makes a 3.01 percent dividend yield. Closing price of the VST shares on 17th December was $17.93 and its price-earning (P/E) ratio in trailing twelve-month basis was 9.85.