5 Cheap Dividend Kings with Over 2% Yield

4. National Fuel Gas Company (NYSE: NFG)

Number of Hedge Fund Holders: 12
Dividend Yield: 3.59%
Number of Years of Consistent Dividend Increases: 51

Share Price as of August 24: $50.69

National Fuel Gas Company (NYSE: NFG), another utilities company, operates through its Exploration and Production, Pipeline and Storage, Gathering, and Utility segments. The company ranks 4th on our list of cheap dividend kings with over 2% yield and is based in New York.

This April, JPMorgan’s Zach Parham began covering shares of National Fuel Gas Company (NYSE: NFG) with a Neutral rating and a $51 price target.

In the fiscal third quarter of 2021, National Fuel Gas Company (NYSE: NFG) had an EPS of $0.93, beating estimates by $0.11. The company’s revenue was $394.40 million, up 22.1% year over year but missing estimates by $89.44 million. National Fuel Gas Company (NYSE: NFG) has gained 9.6% in the past 6 months and 22.3% year to date.

By the end of the second quarter of 2021, 12 hedge funds out of the 873 tracked by Insider Monkey held stakes in National Fuel Gas Company (NYSE: NFG) worth roughly $132 million. This is compared to 16 hedge funds in the previous quarter with a total stake value of approximately $93 million.

Heartland Advisors, an investment management firm, mentioned National Fuel Gas Company (NYSE: NFG) in its first-quarter 2021 investor letter. Here’s what they said:

“The ho-hum Utilities sector isn’t typically a place to hunt for strong growth prospects. However, for investors willing to do their homework, opportunities do exist. Portfolio holding National Fuel Gas Company (NFG) is a prime example.

NFG is a dividend aristocrat—50 consecutive years of dividend increases. Although the business is lumped in with run-of-the-mill power companies, it is much more diverse. In addition to its utility operations, a pipeline and storage division produces almost a quarter of its profits, and the company generates nearly 40% of its bottom line from natural gas exploration and production.

Shares of NFG are trading at a mid-teens discount to their historic average based on price/book. Given the state of the energy industry over the past few years, we believe the company’s gas unit could be an overlooked source of growth. Additionally, the utility recently received regulatory approval on a natural gas pipeline expansion in Pennsylvania, which is expected to produce a windfall in free cash flow.”