In this article, we discuss 5 best dividend stocks under $5. If you want to read our detailed analysis of dividend investing and returns of dividend stocks relative to the broader market, go directly to read 11 Best Dividend Stocks Under $5.
5. Nordic American Tankers Limited (NYSE:NAT)
Share Price as of October 27: $3.10
Nordic American Tankers Limited (NYSE:NAT) is a Bermuda-based international tanker company that has a fleet of approximately 22 vessels. In September, the company announced a sales agreement for a 2003-built Suezmax tanker. The vessel is being sold for $21 million which will help the company to reduce its net debt.
On September 13, Nordic American Tankers Limited (NYSE:NAT) declared a 50% hike in its quarterly dividend to $0.03 per share. This was the company’s second consecutive quarterly dividend growth. Moreover, the company has been making uninterrupted dividend payments for the past 100 quarters, which makes it one of the best dividend stocks on our list. As of October 27, the stock has a dividend yield of 2.58%.
In September, Jefferies upgraded Nordic American Tankers Limited (NYSE:NAT) to Buy while lifting the stock’s price target to $4. The firm gave a positive outlook on tanker stocks considering growing demand due to the Russian war.
At the end of Q2 2022, 7 hedge funds tracked by Insider Monkey owned stakes in Nordic American Tankers Limited (NYSE:NAT), the same as in the previous quarter. The collective value of these stakes is over $16.8 million. With over 2.7 million shares, Millennium Management was the company’s leading stakeholder.
4. Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC)
Share Price as of October 27: $3.31
Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) is a Turkish leading mobile phone operator with millions of subscribers. In August, JPMorgan raised its price target on the stock to TRY 22.55 with a Neutral rating on the shares, highlighting the growth in the company’s customer base.
On July 25, Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) declared a quarterly dividend of $0.058 per share, in line with its previous dividend. The company has been making continuous dividend payments since 2004, coming through as one of the best dividend stocks. As of October 27, the stock has a dividend yield of 9%.
As of the close of Q2 2022, 7 hedge funds in Insider Monkey’s database owned stakes in Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC), up from 6 in the previous quarter. These stakes have a consolidated value of over $35.4 million, compared with $19 million worth of stakes owned by hedge funds in the previous quarter.
3. Banco Bradesco S.A. (NYSE:BBD)
Share Price as of October 27: $3.50
Banco Bradesco S.A. (NYSE:BBD) is a Brazilian financial services company that is one of the largest banking institutions in the country. The company pays monthly dividends to its shareholders. On September 1, it declared a 6.3% growth in its monthly dividend to $0.0034 per share. The stock has a dividend yield of 3.39%, as recorded on October 27.
In the second quarter of 2022, Banco Bradesco S.A. (NYSE:BBD) remained committed to shareholder return. The company paid R$1.1 billion to shareholders in monthly dividends and also returned R$3.7 billion in supplementary dividends. The company’s operating cash flow for the quarter came in at R$28 billion.
In September, Goldman Sachs raised its price target on Banco Bradesco S.A. (NYSE:BBD) to $5.40 and maintained a Buy rating on the shares. The firm sees a good risk/return in Brazilian banks due to ongoing industry trends. The firm also mentioned that Brazil has shown better-than-expected GDP growth.
At the end of June 2022, 14 hedge funds tracked by Insider Monkey owned stakes in Banco Bradesco S.A. (NYSE:BBD), compared with 17 in the previous quarter. These stakes have a collective value of over $155.5 million. Fisher Asset Management was the company’s largest stakeholder in Q2.
2. BlackRock Capital Investment Corporation (NASDAQ:BKCC)
Share Price as of October 27: $3.67
BlackRock Capital Investment Corporation (NASDAQ:BKCC) is a New York-based company that provides flexible financing solutions to middle-market companies. The company reported a strong cash position in Q2 2022 with over $22.4 million available in cash and cash equivalents. It also had nearly $120 million available under its credit facility. The company’s revenue for the quarter saw a 13% year-over-year growth at $12.2 million.
On August 3, BlackRock Capital Investment Corporation (NASDAQ:BKCC) declared a quarterly dividend of $0.10 per share, in line with its previous dividend. The company has not raised its payouts since the pandemic but paid regular dividends over these years. As of October 27, the stock has a dividend yield of 10.9%.
The number of hedge funds tracked by Insider Monkey owning stakes in BlackRock Capital Investment Corporation (NASDAQ:BKCC) stood at 5 in Q2 2022, compared with 9 in the previous quarter. These stakes have a consolidated value of over $3.8 million.
1. Sachem Capital Corp. (NYSE:SACH)
Share Price as of October 27: $3.83
Sachem Capital Corp. (NYSE:SACH) is an American real estate finance company that specializes in managing a portfolio of first mortgage loans. Recently, the company announced to repurchase of approximately $7.5 million worth of its shares in the open market at prevailing market prices. The share repurchase program was authorized by the company’s management.
Sachem Capital Corp. (NYSE:SACH) started paying dividends in 2017 and has paid regular dividends since then. Over these years, it has raised its dividends at a CAGR of 36.3%. In July, the company grew its quarterly dividend by 17% to $0.14 per share. As of October 27, the stock has a dividend yield of 14.62%. In Q2 2022, the company paid approximately $4 million to shareholders in dividends.
At the end of Q2 2022, 4 hedge funds tracked by Insider Monkey owned positions in Sachem Capital Corp. (NYSE:SACH), the same as in the previous quarter. The stakes owned by these hedge funds have a collective value of over $2 million. Two Sigma Advisors was the company’s leading shareholder in Q2.
You can also take a look at 10 Best Dow Jones Dividend Stocks that Hedge Funds Love and 10 Best Foreign Stocks With Dividends
