11 Best High Dividend Stocks Under $50

In this article, we discuss the 11 best high dividend stocks under $50.

According to a report published by Harvard Business Review, the corporate sector paid over 50% of the cash dividends between 1977 and 1978. Historically, dividend stocks have performed somewhat better during times of financial trouble. In 2008, S&P 500 fell by a whopping 37%, while the S&P 500 Dividend Aristocrats index declined by just about 22%.

However, dividend payouts are not always guaranteed and depend on the current market conditions. But the companies that grow their dividends on regular basis tend to perform better than those who cut dividends, or in some cases, don’t pay dividends at all. According to a report published by Hartford Funds, from 1973 to 2020, the dividend growers’ annual average returns stood at 13.2%, compared with dividend eliminators’ average annual returns of 10.2% during the same time period. Similarly, companies with no dividend policy had an annual average return of 12.18% from 1973 to 2020.

This being said, after suffering a pandemic-related hiatus, financial markets are on the road to recovery. Many companies, who previously slashed their dividends, are restoring the dividend policy. Some of the most notable dividend stocks include The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), Exxon Mobil Corporation (NYSE:XOM), Lowe’s Companies, Inc. (NYSE:LOW), and Johnson & Johnson (NYSE:JNJ). These companies have been paying dividends to shareholders for a long time now.

However, in this article, we will focus on the stocks with high dividends under $50.

Our Methodology:

Let’s analyze our list of the best high dividend stocks under $50. The stocks mentioned below are currently traded under $50 and pay consistent dividends to shareholders while exhibiting strong growth potential. In addition to this, we took into account hedge fund sentiment, analysts’ ratings, long-term growth potential, and fundamentals while choosing these stocks.

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11 Best High Dividend Stocks Under $50

11. Brookfield Renewable Partners L.P. (NYSE:BEP)

Number of Hedge Fund Holders: 20

Dividend Yield: 3.12%

Share Price as of October 14: $39.00

Brookfield Renewable Partners L.P. (NYSE:BEP) is a Canadian limited partnership that specializes in renewable power assets. The company reported a solid second-quarter with funds from operation (FFO) reaching $268 million, up 23% from the same period last year. The revenue for the quarter also showed an 8.4% growth from Q2 2020 at $1.02 billion.

This September, Raymond James lifted its price target on Brookfield Renewable Partners L.P. to $44, while upgrading the stock to Outperform. The company currently pays an annual dividend of $1.22 per share, yielding 3.12%. Brookfield Renewable Partners L.P. has increased its dividend by 16.04% in the past three years.

Renaissance Technologies is the company’s largest shareholder, with shares worth $7.8 million. Overall, 20 hedge funds tracked by Insider Monkey have stakes in Brookfield Renewable Partners L.P. in Q2 2021, down from 24 in the previous quarter. These stakes are valued at $232.6 million.

ClearBridge Investments mentioned Brookfield Renewable Partners L.P. in its Q1 2021 investor letter. Here is what the firm has to say:

“U.S. renewables utility Brookfield Renewable was another detractor. Brookfield Renewable is a pure-play renewables operator and developer headquartered in Canada and domiciled in the U.S., focused on international hydro, solar, wind and storage technology. As more private and public institutions announce ambitious carbon reduction initiatives, Brookfield Renewable’s globally diversified, multi-technology renewables business makes it an attractive partner. Its development pipeline stands at 18,000 megawatts, providing confidence the company can meet its targeted double-digit cash flow growth through to 2025. Shares moderated amid expectations of rising bond yields, and a cool-off on the green trade.”

9. The Buckle, Inc. (NYSE:BKE) 

Number of Hedge Fund Holders: 25

Dividend Yield: 3.29%

Share Price as of October 14: $40.18

The Buckle, Inc. (NYSE:BKE), an American fashion retail company, reported strong sales as economies in the U.S. are starting to reopen. In September, the company posted a growth of 17.8% in comparable store net sales, as compared with the same period last year, while the sales grew by 61.8% in 2021.

The Buckle, Inc. pays an annual dividend of $1.32 per share, yielding 3.29%. The company has been growing its dividend for the past 2 years consistently and it has a dividend payout ratio of 49.6%. Ken Heebner’s Capital Growth Management is the largest shareholder of The Buckle, Inc., with shares worth $47.2 million. Of the 873 hedge funds tracked by Insider Monkey, 25 hedge funds were bullish on The Buckle, Inc. as of Q2 2021, up from 22 in the previous quarter. These stakes are valued at $196.9 million.

Like The Coca-Cola Company, The Procter & Gamble Company, Exxon Mobil Corporation, Lowe’s Companies, Inc., and Johnson & Johnson, The Buckle, Inc. is also favored by investors in 2021.

8. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 67

Dividend Yield: 3.77%

Share Price as of October 14: $41.42

Morgan Stanley, an investment banking company, recently lifted its price target on Pfizer Inc. (NYSE:PFE) to $48, with an Equal Weight rating on the shares. The firm’s analyst Matthew Harrison noted the company’s unique position in the development of Covid vaccine booster shots. He also expects growth in the company’s Covid sales guidance.

Pfizer Inc. is an American pharmaceutical and biotech company. In Q2 2021, the company posted an EPS of $1.07, beating the estimates by $0.09. Pfizer Inc. reported revenue of $19 billion, presenting a 93% growth from the prior-year quarter. As of Q2 2021, 67 hedge funds tracked by Insider Monkey are reported to have stakes in Pfizer Inc., with a total value of over $2.35 billion. The number of hedge funds having stakes in the company stood at 65 in the previous quarter, highlighting the positive hedge fund sentiment.

Pfizer Inc. has a track record of 12 years of consistent dividend growth. The company currently pays an annual dividend of $1.56 per share, yielding 3.77%. The stock returned 18.6% in the past year. It ranks eighth on our list of the best high dividend stock under $50.

Pfizer Inc. is also one of the notable dividend stocks like Coca-Cola Company, The Procter & Gamble Company, Exxon Mobil Corporation, Lowe’s Companies, Inc., and Johnson & Johnson.

ClearBridge Investments published its Q1 2021 investor letter and mentioned Pfizer Inc. in it. Here is what the firm has to say:

“Our underweights in health care and staples contributed to relative performance during the period. As we continue to focus the portfolio on high-conviction ideas, we sold Pfizer in late 2020, in the health care sector.”

7. FirstEnergy Corp. (NYSE:FE)

Number of Hedge Fund Holders: 36

Dividend Yield: 4.38%

Share Price as of October 14: $35.64

FirstEnergy Corp. (NYSE:FE), an American electric services company, ranks seventh on our list of the best high dividend stocks under $50.

FirstEnergy Corp. has increased its dividend by 9% in the past three years, and currently pays an annual dividend of $1.56 per share, yielding 4.38%. Its dividend payout ratio stands at 65.2%. This July, Morgan Stanley lifted its price target on FirstEnergy Corp. to $45, with an Overweight rating on the shares.

Carl Icahn’s Icahn Capital is the company’s largest shareholder with approximately 19 million shares. However, the number of hedge funds tracked by Insider Monkey having stakes in FirstEnergy Corp. reduced to 36 in Q2 2021, from 51 in the previous quarter. The value of these stakes is $1.7 billion.

6. Holly Energy Partners, L.P. (NYSE:HEP)

Number of Hedge Fund Holders: 3

Dividend Yield: 7.06%

Share Price as of October 14: $19.83

Holly Energy Partners, L.P. (NYSE:HEP) is an American energy company that is engaged in operations related to petroleum products and crude pipelines, and storage tanks. On July 22, the company’s board announced a quarterly dividend of $0.35 per share, paying an annual yield of 7.06%. Holly Energy Partners, L.P. ranks sixth on our list of the best high dividend stocks under $50.

As of Q2 2021, Arrowstreet Capital is the largest shareholder of Holly Energy Partners, L.P., owning shares worth $3.5 million. In addition to this, 3 hedge funds tracked by Insider Monkey are reported having stakes in the company in Q2, up from 2 in the previous quarter. These stakes are worth $4.43 million.

Holly Energy Partners, L.P. posted an EPS of $0.48 in Q2, in line with the estimates. The company’s revenue beat the analysts’ consensus by $3.79 million at $127.1 million. The stock gained 52.17% in the past year.

5. Enterprise Products Partners L.P. (NYSE:EPD)

Number of Hedge Fund Holders: 28
Dividend Yield: 7.49%
Share Price as of October 14: $24.16

Gabriel Moreen of Mizuho recently noted that Enterprise Products Partners L.P. (NYSE:EPD), an American natural gas and crude oil pipeline company, is well-posed to benefit from a growth in crude oil prices. The firm lifted its price target on the stock to $29, while maintaining a Buy rating on the shares. The company stands fifth on our list of the best high dividend stocks under $50.

Enterprise Products Partners L.P. pays an annual dividend of $1.80 per share, yielding 7.49%. The company has increased its dividend by 6.7% in the past three years.

Of the 873 elite funds tracked by Insider Monkey, 28 hedge funds were bullish on Enterprise Products Partners L.P. in Q2 2021, compared with 26 in the previous quarter. These stakes have a value of over $246 million.

ClearBridge Investments mentioned Enterprise Products Partners L.P. in its Q1 2021 investor letter. Here is what the firm has to say:

“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) Enterprise Products Partners LP. We are positive on this company’s strong balance sheets, competitive positions and exposure to an economic recovery.”

4. Altria Group Inc (NYSE:MO)

Number of Hedge Fund Holders: 47
Dividend Yield: 7.50%
Share Price as of October 14: $48.32

Altria Group Inc (NYSE:MO) ranks fourth on our list of the best high dividend stocks under $50. On August 26, the company’s board announced a 5% growth in its quarterly dividend at $0.90 per share, paying an annual yield of 7.5%.

Altria Group Inc, an American tobacco company, reported solid quarterly earnings on July 29. The company’s EPS of $1.23 beat the market consensus by $0.06. Similarly, Altria Group Inc generated revenue of $5.6 billion, beating the estimates by $240 million. Harris Associates is the company’s largest shareholder, with shares worth $243.3 million. Overall, 47 hedge funds tracked by Insider Monkey were bullish on Altria Group Inc in Q2 2021, valued at $948.9 million. In the previous quarter, the number of hedge funds having stakes in the company stood at 38, which highlights the positive hedge fund sentiment in Q2.

In September, BofA lifted its price target on Altria Group Inc to $54, while keeping a Buy rating on the shares. The stock gained 22.6% in the past year.

Broyhill Asset Management mentioned Altria Group Inc in its Q2 2021 investor letter. Here is what the firm has to say:

“Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.

MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”

3. AT&T Inc. (NYSE:T)

Number of Hedge Fund Holders: 68
Dividend Yield: 8.22%
Share Price as of October 14: $25.69

AT&T Inc., a Delaware-based telecom company, is recently upgraded by KeyBanc to Sector Perform, with a $32 price target. The firm’s analyst appreciated the company for showing improved results in the past year and safe dividend payouts.

AT&T Inc. has a track record of 36 years of consistent dividend growth. The company currently pays an annual dividend of $2.08 per share, yielding 8.22%. As of Q2 2021, the number of hedge funds tracked by Insider Monkey having stakes in AT&T Inc. grew to 68 from 63 in the previous quarter. The total value of these stakes is over $2.8 billion.

Nelson Capital Management mentioned AT&T Inc. in its Q1 2021 investor letter. Here is what the firm has to say:

“Nelson Capital stayed busy in the first quarter, making several adjustments within our core portfolio. In the communication services sector, we sold AT&T (tkr: T). Over the years, AT&T has made several poor acquisitions, especially in the content realm, leaving the company saddled with debt and unable to change directions.”

2. Magellan Midstream Partners, L.P. (NYSE:MMP)

Number of Hedge Fund Holders: 13
Dividend Yield: 8.63%
Share Price as of October 14: $47.91

Magellan Midstream Partners, L.P. (NYSE:MMP) ranks second on our list of the best high dividend stocks under $50. This publicly traded partnership has a track record of 11 years of dividend growth. Currently, Magellan Midstream Partners, L.P. pays an annual dividend of $4.11 per share, yielding 8.63%.

683 Capital Partners is the largest shareholder of Magellan Midstream Partners, L.P., with shares worth $50.9 million. Overall, 13 hedge funds tracked by Insider Monkey reported having stakes in the company in Q2, compared with 14 in the previous quarter. The total value of these stakes is $89 million.

1. MPLX LP (NYSE:MPLX)

Number of Hedge Fund Holders: 11
Dividend Yield: 9.09%
Share Price as of October 14: $30.93

MPLX LP (NYSE:MPLX) is a master limited partnership (MLP) that operates midstream energy infrastructure. Due to the stability in the oil prices in recent months, the company is well-positioned to benefit. MPLX LP tops our list of the best high dividend stocks under $50.

Zimmer Partners is the largest shareholder of MPLX LP in Q2, with shares worth $51.2 million. In addition to this, 11 hedge funds tracked by Insider Monkey were bullish on the company in Q2, valued at $115.6 million. The number of hedge funds having stakes in MPLX LP stood at 8 in the previous quarter, showing positive hedge fund sentiment.

MPLX LP pays an annual dividend of $2.75 per share, yielding 9.09%. The company has increased its dividend by 24.3% in the past three years. In Q2 2021, MPLX LP reported revenue of $2.4 billion, showcasing a 15.4% year-over-year growth. In October, Barclays lifted its price target on the stock to $33, while keeping an Overweight rating on the shares.

Miller/Howard Investments mentioned MPLX LP in its Q1 2021 investor letter. Here is what the firm has to say:

“Lastly, we added MPLX LP (MPLX) in the with-MLP version. MLPX pays a high dividend and is cheap relative to similar pipeline companies… We increased our weight in MPLX LP (MPLX) which provides exposure to Permian volumes and northeast natural gas volumes. In addition, the company’s FCF yield was above the portfolio’s FCF yield.”

You can also take a look at 10 Best Dividend Paying Stocks to Buy Under $50 and 10 Best Dividend Stocks Under $20

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This article is originally published at Insider Monkey.