5 Cheap Dividend Stocks with Payout Ratio Under 40%

In this article, we will be taking a look at 5 cheap dividend stocks with payout ratio under 40%. To read our detailed analysis of dividend investing, you can go directly to see the 10 Cheap Dividend Stocks with Payout Ratio Under 40%.

5. U.S. Bancorp (NYSE: USB)

Number of Hedge Fund Holders: 41
Dividend Yield: 2.88%

Payout Ratio: 35.6%

U.S. Bancorp (NYSE: USB) is a financial services holding company based in Minneapolis. The company ranks 5th on our list of cheap dividend stocks with payout ratio under 40%. It operates through its Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, Payment Services, and Treasury and Corporate Support segments.

Barclays raised its price target on shares of U.S. Bancorp (NYSE: USB) this July from $65 to $68. The firm also reiterated an Overweight rating on the stock.

In the second quarter of 2021, U.S. Bancorp (NYSE: USB) had an EPS of $1.28, beating estimates by $0.15. The company’s revenue was $5.76 billion, beating estimates by $136.74 million. U.S. Bancorp (NYSE: USB) has gained 13.96% in the past 6 months and 26.41% year to date.

By the end of the second quarter of 2021, 41 hedge funds out of the 873 tracked by Insider Monkey held stakes in U.S. Bancorp (NYSE: USB) worth roughly $8.3 billion. This is compared to 43 hedge funds in the previous quarter with a total stake value of approximately $8.3 billion.