5 Dividend Stocks That Are Too Cheap To Ignore

3. Coterra Energy Inc. (NYSE:CTRA)

Share Price as of October 10: $29.2

Coterra Energy Inc. (NYSE:CTRA) is an American company that is engaged in the exploration of hydrocarbon. The company’s cash generation makes it well-positioned to deliver superior and sustainable returns to shareholders. In Q2 2022, the company generated $405 million in free cash flow and paid 80% of its FCF to shareholders in dividends. Its operating cash flow for the quarter was $880 million, compared with $245 million during the same period last year.

Coterra Energy Inc. (NYSE:CTRA) maintains a 5-year streak of consistent dividend growth. Over these years, the company has raised its payouts at a CAGR of 32.6%, coming through as one of the best dividend stocks on our list. It pays a quarterly dividend of $0.65 per share and has a dividend yield of 2.05%, as of October 10.

In September, Citigroup raised its price targets on Coterra Energy Inc. (NYSE:CTRA) to $30 and maintained a Neutral rating on the shares. The firm noted that Exploration and Production companies are bouncing back after the pandemic which would lead to multiple expansions and yield compression.

At the end of June 2022, 40 hedge funds in Insider Monkey’s database owned stakes in Coterra Energy Inc. (NYSE:CTRA), up from 39 in the preceding quarter. The collective value of these stakes is over $437.3 million. With over 4.5 million stakes, Diamond Hill Capital was the company’s leading stakeholder in Q2.

Palm Valley Capital Management mentioned Coterra Energy Inc. (NYSE:CTRA) in its Q2 2022 investor letter. Here is what the firm has to say:

“We sold two Fund positions during the quarter which includes Coterra Energy (NYSE:CTRA). As a result of surging oil and natural gas prices, Coterra reached our valuation, and we exited the position in April.”