In this article, we discuss 5 cheap quarterly dividend stocks to buy. If you want to see more cheap quarterly dividend stocks to buy, the risk/reward, and methodology of this list, go directly to 14 Cheap Quarterly Dividend Stocks to Buy.
5. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 74
Dividend Yield as of 3/29: 2.49%
The Procter & Gamble Company (NYSE:PG) is a leading consumer staple with a forward P/E of 23.19, which doesn’t seem cheap. Nevertheless, The Procter & Gamble Company (NYSE:PG) in the long term is likely cheap as its earnings could expand once inflation normalizes. In the near term, however, the company faces potential inflationary and economic headwinds. 74 hedge funds in our database owned shares of The Procter & Gamble Company (NYSE:PG) at the end of Q4, versus 69 hedge funds in our database that owned shares of the company at the end of Q3.
4. Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 74
Dividend Yield as of 3/29: 3.12%
Goldman Sachs Group, Inc. (NYSE:GS) is a leading investment bank that also has a pretty sizable asset management business. As a result of the weakness in leading financial blue chip stocks after the failure of Silicon Valley Bank, Goldman Sachs Group, Inc. (NYSE:GS) stock has fallen to trade for a forward P/E of 8 as of March 30. With the lower valuation, the company’s quality investment banking and trading segments, and its normalized earnings power, Goldman Sachs Group, Inc. (NYSE:GS) could be cheap in the long term even if it might have near term downside risk if the financial sector weakens further. During its investor day in February, the company said it is considering strategic alternatives for its consumer platforms business which hasn’t done as well as expected.
74 hedge funds in our database owned shares of Goldman Sachs Group, Inc. (NYSE:GS) at the end of Q4, ranking the stock #4 on our list of 14 Cheap Quarterly Dividend Stocks to Buy.
3. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 100
Dividend Yield as of 3/29: 3.10%
JPMorgan Chase & Co. (NYSE:JPM) is the largest bank in the United States by assets whose shares have declined given the weakness in leading financial blue chip stocks after the failure of several regional banks. Nevertheless, JPMorgan Chase & Co. (NYSE:JPM) likely benefits in the long term as some deposits likely moved from regional banks into JPMorgan Chase & Co. (NYSE:JPM) as a result of the regional bank weakness. Bloomberg recently reported that the FDIC is considering making the biggest banks in the U.S. pay more in terms of their share of the smaller bank failure costs which currently is around $23 billion, however. As of March 30, JPMorgan Chase & Co. (NYSE:JPM) has a forward P/E ratio of 9.6.
2. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 100
Dividend Yield as of 3/29: 3.07%
Bank of America Corporation (NYSE:BAC) is one of the largest banks in the United States that has a forward P/E ratio of 7.87 as of March 30. One reason for the low valuation is that Bank of America Corporation (NYSE:BAC) has “$109 billion of unrealized losses in the held-to-maturity bond portfolio” according to Barron’s. In the long term, however, Bank of America Corporation (NYSE:BAC) is likely cheap given its normalized earnings power and growth potential if it can maintain its market share.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 259
Dividend Yield as of 3/29: 0.97%
Microsoft Corporation (NASDAQ:MSFT) ranks #1 on our list of 14 Cheap Quarterly Dividend Stocks to Buy given 259 hedge funds in our database owned shares of the tech giant at the end of Q4. Although it has a forward P/E of 26.1 as of March 30, Microsoft Corporation (NASDAQ:MSFT) is cheap in the long term if it can capitalize on its AI potential. Microsoft Corporation (NASDAQ:MSFT) reportedly owns 49% of OpenAI which makes the popular ChatGPT. Although ChatGPT makes mistakes, Microsoft Corporation (NASDAQ:MSFT) has incorporated it into Bing, giving it potential to increase market share. Microsoft Corporation (NASDAQ:MSFT) also has the second largest cloud computing business in the world that could benefit from more AI processing.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also take a look at 14 Best American Dividend Stocks to Buy Now and 10 Most Advanced Countries in Nuclear Fusion.
