In this article, we will look at 5 low-priced blue-chip stocks to buy now. If you want to explore similar stocks, you can go to 10 Low-Priced Blue Chip Stocks to Buy Now.
5. UGI Corporation (NYSE:UGI)
Number of Hedge Fund Holders: 30
Share Price as of June 17: $37.65
UGI Corporation (NYSE:UGI) operates as a gas utility company that distributes, stores, transports, and markets energy products and related services in the United States and internationally. The company operates through four segments: AmeriGas Propane, UGI International, Midstream & Marketing, and UGI Utilities. UGI Corporation (NYSE:UGI) is one of the best low-priced blue-chip companies to invest in because it is undervalued, pays dividends, and is well-positioned to benefit from rising gas prices.
On May 4, UGI Corporation (NYSE:UGI) announced that its board of directors have declared a quarterly cash dividend of $0.36 per share, up 4.3% from its prior dividend of $0.345. The dividend is payable on July 1 to investors of record on June 15. As of June 17, UGI Corporation (NYSE:UGI) has a forward PE ratio of 12.89, and a dividend yield of 3.82%. The company has been consistent with growing its dividends for the past 19 years and has a 5-year dividend CAGR of 7.70%.
As of March 22, Barclays analyst Christine Cho has a $40 price target and an Equal Weight rating on UGI Corporation (NYSE:UGI).
At the end of Q1 2022, 30 hedge funds disclosed ownership of stakes in UGI Corporation (NYSE:UGI). These stakes were worth $241.76 million, up from $167.25 million in the preceding quarter with 31 positions.
As of March 31, First Eagle Investment Management is the leading shareholder in UGI Corporation (NYSE:UGI), owning over 8.58 million shares of the company.
4. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 45
Share Price as of June 17: $46.20
The Kroger Co. (NYSE:KR) operates a variety of food and drug stores, multi-department stores, marketplace stores, and price impact warehouses throughout the United States. On June 17, Morgan Stanley analyst Simeon Gutman raised his price target on The Kroger Co. (NYSE:KR) to $41 from $38 and reiterated an Underweight rating on the shares.
Two features that made The Kroger Co. (NYSE:KR) rank high among low-priced blue-chip stocks to invest in now are the company’s undervalued nature and dividend yield. As of June 17, the stock has a forward PE ratio of 11.87 and a dividend yield of 1.82%.
At the end of Q1 2022, 45 hedge funds held stakes in The Kroger Co. (NYSE:KR) worth $5.16 billion. This is compared to 41 positions in the prior quarter with stakes worth $4.15 billion. The hedge fund sentiment for the stock is positive.
As of March 31, Berkshire Hathaway is the top stakeholder in The Kroger Co. (NYSE:KR), with stakes worth $3.32 billion.
3. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 47
Share Price as of June 17: $45.31
Altria Group, Inc. (NYSE:MO) manufactures and sells smokable and oral tobacco products in the United States. The company is most famous for its Marlboro brand. As of April 29, Deutsche Bank analyst Steve Powers has a $60 price target and Buy rating on Altria Group, Inc. (NYSE:MO).
As of June 17, Altria Group, Inc. (NYSE:MO) has a forward dividend yield of 7.95% and a price-to-earnings ratio of 9.34, which makes it an undervalued dividend blue-chip stock to invest in. The company has been paying out dividends to investors for the past 18 years and has a 5-year dividend CAGR of 8.09%.
On May 19, Altria Group, Inc. (NYSE:MO) declared a quarterly cash dividend of $0.90 per share, in-line with the previous. The dividend is payable on July 11 to shareholders of record on June 15.
At the end of Q1 2022, 47 hedge funds were long Altria Group, Inc. (NYSE:MO) with stakes worth $1.95 billion. This is compared to 39 positions in Q4 2021 with stakes worth $1.05 billion. The hedge fund sentiment for the stock is positive.
In the first quarter of 2022, GQG Partners raised its stakes in Altria Group, Inc. (NYSE:MO) by 100%, bringing them to $956.22 million. GQG Partners is the dominating shareholder in the company as of March 31, 2022.
2. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 74
Share Price as of June 17: $19.38
Analysts are recommending AT&T Inc. (NYSE:T) to investors in order to recession-proof their portfolios. On June 14, Wells Fargo unveiled its recession stock portfolio, a part of which was AT&T Inc. (NYSE:T). The stock was also named among the “15 stocks that can weather a bear market” by Morgan Stanley on May 23. Moreover, this June, Tigress Financial analyst Ivan Feinseth maintained a Buy rating on the shares. The analyst sees the company’s “resilient” business model and growing consumer base to drive increased cash flow and long-term shareholder returns.
AT&T Inc. (NYSE:T) is among the best budget-friendly blue-chip stock options to consider because, at current levels, the stock is undervalued and moreover, is paying dividends. As of June 17, AT&T Inc. (NYSE:T) has a forward PE ratio of 7.55 and a dividend yield of 5.73%.
At the close of Q1 2022, 74 hedge funds disclosed ownership of stakes in AT&T Inc. (NYSE:T). The total value of these stakes came in at $4.0 billion. Of these, Arrowstreet Capital was the most bullish hedge fund on the stock with stakes worth $678.54 million.
Here is what Weitz Investment Management had to say about AT&T Inc. (NYSE:T) in its “Hickory Fund” fourth-quarter 2021 investor letter:
“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T Inc. (NYSE:T) to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”
1. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 78
Share Price as of June 17: $38.71
On April 28, Comcast Corporation (NASDAQ:CMCSA) reported market-beating earnings for the fiscal first quarter of 2022. The company registered an EPS of $0.86, ahead of expectations by $0.05. Moreover, the company’s revenue for the quarter came in at $31.01 billion, up 13.99% year over year, and exceeded Wall Street expectations by $602.53 million.
Comcast Corporation (NASDAQ:CMCSA) made it to Wells Fargo’s recession stock portfolio. Morgan Stanley analysts are also bullish on Comcast Corporation (NASDAQ:CMCSA) and named the stock among their top 15 picks that can weather a bear market. Moreover, on June 2, Benchmark analyst Matthew Harrigan lowered his price target on Comcast Corporation (NASDAQ:CMCSA) to $60 from $65 but reiterated a Buy rating on the shares. The analyst noted that he cut his price target on Comcast Corporation (NASDAQ:CMCSA) to reflect tightening market conditions.
Comcast Corporation (NASDAQ:CMCSA) is an undervalued blue-chip play, with the added advantage of dividends. As of June 17, Comcast Corporation (NASDAQ:CMCSA) has a forward PE ratio of 10.76 and a dividend yield of 2.79%.
At the end of Q1 2022, 78 hedge funds were long Comcast Corporation (NASDAQ:CMCSA) with stakes worth $7.12 billion. Of these, First Eagle Investment Management held the majority stakes and was the top shareholder in the company. As of March 31, First Eagle Investment Management’s stakes in Comcast Corporation (NASDAQ:CMCSA) are valued at $1.40 billion, up 3% from its Q4 2021 stakes.
ClearBridge Investments mentioned Comcast Corporation (NASDAQ:CMCSA) in its “All Cap Growth Strategy” fourth-quarter 2021 investor letter. Here is what the firm said:
“Weakness among our holdings in the communication services sector was the other detractor to performance. Comcast was hurt by tepid subscriber growth in its broadband business but demonstrated strong growth in free cash flow, positioning the company for accelerated capital return going forward.”
You can also take a look at 10 Growth Stocks Under $50 for 2022 and 10 Blue Chip Stocks with Dividends.
