In this article, we discuss 5 under-the-radar dividend stocks to buy now. If you want to read our detailed analysis of dividend stocks and their importance in the current economic environment, go directly to the 10 Under-The-Radar Dividend Stocks to Buy Now.
5. Ross Stores, Inc. (NASDAQ:ROST)
Dividend Yield as of August 24: 1.41%
Ross Stores, Inc. (NASDAQ:ROST) is a California-based chain of discount department stores. The company was popular among elite funds in Q2 2022, as 46 hedge funds tracked by Insider Monkey’s database owned stakes in the company, up from 44 a quarter earlier. Those stakes were valued at over $812 million.
In Q2 2022, Ross Stores, Inc. (NASDAQ:ROST) had nearly $4 billion available in cash and cash equivalents, and its total assets stood at roughly $7 billion. The company’s revenue for the quarter came in at $4.5 billion, falling by 4.6% from the same period last year. In addition to this, it paid $217 million in dividends during the quarter, up from $203 million paid in the prior-year period. Ross Stores, Inc. (NASDAQ:ROST) pays a quarterly dividend of $0.31 per share, raising it by 8.8% in March. The stock’s dividend yield stood at 1.41% as of August 24.
In August, Barclays raised its price target on Ross Stores, Inc. (NASDAQ:ROST) to $98 with an ‘Overweight’ rating on the shares, appreciating the company’s earnings beat in Q2.
4. AptarGroup, Inc. (NYSE:ATR)
Dividend Yield as of August 24: 1.42%
AptarGroup, Inc. (NYSE:ATR) is an American company that manufactures consumer dispensing packaging and also provides drug delivery services. The company showed solid results in Q2 2022, posting revenue of $845 million, up 4.1% from the same period last year. It ended the first half of the year with over $240 million in cash and cash equivalents, compared with $123 million at the end of December. In addition to this, the company also repurchased $37 million worth of shares during the quarter.
AptarGroup, Inc. (NYSE:ATR) currently pays a quarterly dividend of $0.38 per share, with shares yielding 1.42% as recorded on August 24. The company holds a 28-year track record of consistent dividend growth.
Highlighting the continued rebound in the company’s Pharma and Beauty sub-segments, Baird set a $110 price target on AptarGroup, Inc. (NYSE:ATR) in August and maintained a ‘Neutral’ rating on the shares.
As of the end of June 2022, 23 hedge funds tracked by Insider Monkey owned stakes in AptarGroup, Inc. (NYSE:ATR), the same as in the previous quarter. The collective value of those stakes was over $382 million. Rivulet Capital was the leading stakeholder of the Illinois-based company in Q2.
Upslope Capital Management mentioned AptarGroup, Inc. (NYSE:ATR) in its Q1 2022 investor letter. Here is what the firm had to say:
“AptarGroup (NYSE:ATR): Specialty packaging business focused on pumps and sprayers, with a highly profitable, defensive, and growing Pharma unit. Misclassified and undervalued due to legacy/traditional packaging businesses (Food + Beverage, Beauty + Home), which contribute 60% of sales but just 15% of EBIT.”
3. The Andersons, Inc. (NASDAQ:ANDE)
Dividend Yield as of August 24: 1.79%
The Andersons, Inc. (NASDAQ:ANDE) is an Ohio-based company that specializes in agribusinesses. The company’s Q2 results were very strong, with its revenue growing by 37.3% year-over-year to $4.45 billion. The company generated $135 million in cash from operations, compared with $93.1 million from the same period last year. Moreover, it paid $12.2 million to shareholders in dividends during the quarter.
In August, The Andersons, Inc. (NASDAQ:ANDE) declared a quarterly dividend of $0.18 per share, in line with its previous dividend. The company has been making consistent dividend payments since its public listing in 1996. As of August 24, the stock’s dividend yield came in at 1.79%.
As of the close of Q2 2022, 15 hedge funds tracked by Insider Monkey owned stakes in The Andersons, Inc. (NASDAQ:ANDE), down from 16 in the previous quarter. The collective value of those stakes was roughly $40 million.
2. C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)
Dividend Yield as of August 24: 1.88%
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is a Minnesota-based transport company that also specializes in third-party logistics. The company was added to Evercore ISI’s Tactical Outperform list in August, as the firm appreciated the company’s material defensive qualities during previous market downturns.
For Q2 2022, C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) reported revenue of $6.8 billion, presenting 23% year-over-year growth. The company’s cash position remained strong, as cash generated by operations improved by $116 million to $265 million. In addition to this, cash returned to shareholders increased by 100% during the quarter, amounting to $409 million, of which dividend payments accounted for $72.4 million.
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) pays a quarterly dividend of $0.55 per share, with the stock having a dividend yield of 1.88% as recorded on August 24.
At the end of Q2 2022, 26 hedge funds tracked by Insider Monkey’s database owned stakes in C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW), compared with 23 in the previous quarter. The collective value of those stakes was roughly $520 million. With over 10.6 million CHRW shares, First Eagle Investment Management was the company’s leading stakeholder in Q2.
1. Polaris Inc. (NYSE:PII)
Dividend Yield as of August 24: 2.16%
An American automotive manufacturer, Polaris Inc. (NYSE:PII) has been raising its dividends consistently for the past 27 years, landing it in the category of Dividend Aristocrats. The company pays a quarterly dividend of $0.64 per share, giving PII shares a yield of 2.16% as of August 24.
For Q2 2022, Polaris Inc. (NYSE:PII) reported revenue of $2.06 billion, up 8% from the same period last year. The company had $314 million in cash and cash equivalents at the end of June, compared with $278 million six months earlier. The company’s dividend payments during the quarter amounted to $76 million.
At the end of Q2 2022, 13 of the hedge funds tracked by Insider Monkey owned investments in Polaris Inc. (NYSE:PII), the same as in the previous quarter. The collective value of those stakes was $147 million, compared with $121 million worth of stakes owned by hedge funds in Q1 2022.
For further dividend stock picks that may be worth adding to your income portfolio, check out 10 High Dividend Stocks to Shore Up Your Cash Position Before Recession Begins and 10 Safe Dividend Stocks to Buy Before 2023
